www.iva.co.uk

Just want some clarification, annual salary of £30,000, annual bouns of £3,000 what will have to be paid into the arrangement?

as i understand its 50/50 rule on all overtime, bonus etc so i would assume £1500 from your bonus!

im sure one of the IP will be laong soon to clartify this for you

Drew

does the 10% rule apply or is this a myth lol

It would depend on your proposal and any modifications. However, a salary of £30k would net a shade under £1900 per month. If you received a bonus of £3000 in one month there would be tax and NI deductions of approx £1000. Your net would therefore be increased by about £2000 for that month.

Provided you are allowed to keep 10% of your earnings you would deduct £190 and divide the balance by 2 meaning you would pay in the region of £905 into your IVA.

Your own IP should be able to give exact figures and of course it depends on whether the bonus is paid all in one month or paid at various times over the year.

sorry the £3,000 is a annual bouns not monthly lol

Yes but if the bonus is paid in one month it forms part of that month's income and is treated as such. You keep the first 10% of your increased income and divide the rest with your IVA.

Read your proposal and pray and hope you dont have any overtime/bonus clause like me )

The way i have handled this was to look at my two previous payslips.

I then calculated the increase in the latest month's pay using the two previous months as a reference point.

I then sent a cheque for slightly less than 50% of the increase (rounded down it came to £1,500) along with photocopies of my payslips.

Only once in 5 years was an additional payment requested over the £1,500.