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Posted: Fri Oct 29, 2010 10:25 am
by Alvie.z
will i have to pay more each month if i do overtime its not regular but can sometimes get alot but never know when
Posted: Fri Oct 29, 2010 10:39 am
by Michael Peoples
Hi Alvie and welcome to the Forum.
You are normally allowed to keep any overtime or bonuses that do not increase your net take home pay by more than 10%. Anything oevr this you split 50/50 with creditors. This gives you an incentive to do extra work while improving the return to creditors.
Posted: Fri Oct 29, 2010 10:53 am
by OfficeDesk
Is the 10% rule a definitive one re overtime Michael?
Posted: Fri Oct 29, 2010 11:00 am
by Michael Peoples
It is written into most proposals but creditors do have the option of modifying it out. Most banks allow you to retain the 10% but there are a couple that ask for a simple 50/50 split of all overtime so it depends on who you owe money to.
Posted: Fri Oct 29, 2010 11:04 am
by OfficeDesk
Thanks very much, handy to know that. I had initially thought it was all overtime split 50/50. So advice to debtors is to save half and forget about it until the annual review comes around.
Posted: Fri Oct 29, 2010 11:10 am
by Michael Peoples
The overtime must be passed to the IP within 14 days of receipt so really the best advice is to speak to your IP firm as soon as you recieve the wage slip and money. You can then agree the correct figure and pay it over while it is still in the bank rather than leaving it lying until the review.
Even if it was acceptable to wait I would still advise paying it over on receipt rather than having it sitting in the bank.
Posted: Fri Oct 29, 2010 12:11 pm
by deepinit
all my overtime split 50-50 so if you've not started your IVA ask before you sign up with a company and compare a few companys
Posted: Fri Oct 29, 2010 4:14 pm
by kallis3
Mine is 10% then 50/50.
I do agree with Michael about sending it off straight away - removes temptation then.
Posted: Fri Oct 29, 2010 10:32 pm
by deepinit
Kallis are you with payplan? I'm with them and mine is a straight 50-50 split asked about the 10% and they said they don't do that.
Posted: Fri Oct 29, 2010 10:34 pm
by kallis3
I'm with Payplan and mine is 10% plus 50/50.
Posted: Tue Nov 02, 2010 4:34 pm
by alfiej35
IS THE 10% RULE ON TAKE HOME PAY OR FIRST 10% OF OVERTIME
Posted: Tue Nov 02, 2010 4:39 pm
by kallis3
The 10% rule is on your take home pay. You get to keep the first 10% of overtime over and above that and then split the rest 50/50.
Posted: Tue Nov 02, 2010 5:16 pm
by deepinit
Hi kallis
I've contacted payplan about my overtime payments being 50-50 split and they say its because my IVA is Protocol Compliant (whatever that means)
Posted: Tue Nov 02, 2010 5:32 pm
by kallis3
If yours is the 2010 protocol then it probably is 50/50. Mine is the 2008 protocol.
Posted: Tue Nov 02, 2010 5:45 pm
by alfiej35
SO IF I EARN 1000£ A WEEK THEN DO 200£ OVERTIME DO I TAKE 100£ OFF AS 10% OF A 1000£ THEN 50/50 THE OTHER 100£ AND GIVE THEM 50£