www.iva.co.uk

Hi Guys, this is one for Melanie or one of the other experts really but I posted here so that the answer could benefit someone else.

Hubby changed jobs last month and had his first pay at the end of August. It was much less than usual because he only had two weeks pay. He did get a small payment from his previous job, but is was very small as he had to repay some holiday that he had overtaken, therefore his total monthly take home pay was much less than normal.

This month, he will have done a full month plus some overtime. The overtime clause is on his chairmans report, so that will apply but I am not sure whether the calculation is done month by month or whether it is averaged out over a period. If you look at the last two month's pay, with what he was short last month and the extra he will get this month, it will probably even itself out to two months of normal pay. Then of course, he will pay £60 less in his tax this month also, which I understand the IP's are not going to claw back into the IVAs.

We are happy to pay over the percentage of overtime if that's what is required of us, but we are a bit confused as to how to work it out.

Thanks for your time.

Kazzy x

The exercise is averaged out over a year Kazzy, so you don't need to worry about having to pay money over one month which you might need to supplement shortfalls the following month.

Thanks for that Melanie, but what worries me is, how often is it averaged out (eg quarterly, six monthly, annually), because I worry about receiving a big bill at the end of the year for anything we should have paid over to our IVA during the year. We would rather pay it month on month but as you say, over the year, we could leave ourselves out of pocket. Sorry to sound dumb [:I].

Kazzy x

We tend to look quarterly, but that does not mean you are obliged to pay the additional monies over quarterly. Why not open a separate account and pay in the extra each month, and then if you have a short paid month you can take the money out to supplement the shortfall. It takes a little self-discipline, but if you are sensible you can manage this very well yourselves. Get an account that needs both signatures, so you don't get tempted to have a dip in if you see something you fancy!

Lol [:)] That's a good idea. OK thanks, that makes me feel better, I am just scared of doing something wrong in our IVA so wanted to get it settled in my mind.

Thanks again Melanie.

Kazzy x