I am currently in the 4th year of an IVA.I am employed full time and pay my Creditors off monthly.i have just secured a consultancy post which will bring in extra income monthly.The amount will differ each month .Im aware that I have a figure I am able to earn which is 10% more than then its 50/50.my question is I will pay tax/n.i plus deductions for expenses.The calculations would be done for this at year end therefore how do I give an accurate calculation on a monthly basis to pay extra to my creditors?i don't want to fall into more debt!!!!
When I get the odd month where I earn more than my basic salary plus the 10%, I send the 50% above this that is due, direct to my IP with my IVA payment for that month. I then email them a copy of my payslip and the details of the extra funds due.
I have an income spread sheet given by my IP, which calculates when it is due based on my figures entered, and keeps a track of my income over the 12 month period.
If in doubt, as always, speak to your IP.
Started IVA 27th Feb 2012 - Due to complete 27th Jan 2018 !!
Full & Final submitted and accepted 30th March 2015, paid 10th April 2015 - 3 yrs 1 month into IVA
Completion Certificate received- 30th April 2015!!
I would agree a monthly fixed cost percentage deduction with your IP, any differential can be paid/deducted from regular payments after your tax return is completed
I'm aware of the extra however as I am self employed doing the consultancy work I have to go through tax and n.i at year end.heres a scenario I earned £190,from this I have deducted expenses ie hotel and fuel (had to work away from home)which equated to £110 therefore I have £80 left.after tax and insurance it would be less than that.What would I contribute extra from this?thanks
In the early days of our interlocking IVAs the then wife did part time self employed work in addition to the full time PAYE job.
We basically took off expenses, leaving a "profit" figure, which we divided three ways: a third for us, a third for the IVA and a third put aside for tax and NIC. This method was accepted by our first IP and never questioned by the second.
However, your IP might have different views.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
