OT payments

[agreen0]

Hi there, I am about to start an IVA however I am wondering what happens with OT payments? I am aware that generally that the 1st 10% goes to yourself and the remainder is split 50/50 to the creditors and yourself.

What would happen if you managed to do a lot of OT on a regular basis would the IVA finish earlier what would be the impact on the IVA?

Thanks in advance [:)]

[lukeofyorkshire]

The IVA would not finish early as it is for a period of 5 years paying back a set amount in the pound. It would just mean your creditors getting more money back.

It depends on the agreement as my understanding is that not every proposal is the same. Mine is as you specified I can keep up to the first 10% and after that it is split 50/50.

I'm sure someone wiser will be along to answer shortly.

[agreen0]

Thanks for the info, can you tell me how you work out the tax and ni payments on the ot? On my payslip it is listed before tax and ni is deducted.

[Shining]

Hi and welcome to the forum, if there comes a time when you've made 100% of payments plus fees to the IP company and maybe statutory interest then your IVA would conclude.

Your IP should give you a figure e.g £1,000 salary (take home) with 10% added £1100, anything over that would need to be given to your IP in respect of the uplift 50/50. Mine is worked out for me and I know exactly how much to send (if any).

Do check your proposal carefully and speak with your IP if unsure. x

[agreen0]

Thanks Lesley thats what I needed clarification on, i am just starting out on this road so will be posting on here regularly with my ups and downs

[Shining]

Please do keep posting, there is mostly someone about to help/advise/support as needed. Your IP will explain it all to you in great detail. I keep a spreadsheet which works it out for me but others will do it other ways.

All the best and don't be a stranger to the forum as your journey will help someone else. x

[luna]

Hi,

In my opinion the ability to earn OT or in my case receive bonuses etc makes the difference between really tight budgeting and perhaps not missing out to much on a decent standard of living.

Regards,

[James Falla]

Hi agreen0

As has already been rightly said, generally overtime will be treated as not guaranteed and as such the 10% and then 50/50 split rules will apply. However, you need to be 100% certain how much your overtime equates to after tax as it is only the net figure that is taken into account. If you are unsure about this you should speak to someone in the payroll department at work who will be able to explain it to you.

So there are no surprises you should speak to your IP before your IVA is proposed and understand from them exactly how they will want to deal with your overtime as and when it is paid.

[Goosed]

Hi agreen0,
With regards to uplift payment calculations for overtime and bonuses, I simply work from anything over my BASIC monthly net wage for working out how much I need to pay over. You will have notified your IP of your BASIC monthly wage, so they will be able to calculate it for you.
You will have two weeks to pay over any uplift due from the date you are paid overtime or bonuses.

[agreen0]

Thanks all you have been most helpful I look forward to speaking to you all as I progress.