www.iva.co.uk

My IVA stars in March this year,and my company I work for pay my holiday bonus pay at the end of June, do I have to contact the IP and hand over this bonus......I DON'T WANT TO RUIN MY iva before its even started......starting to get worried now any advice would be appreciated

Depends on your terms. In our case, we could keep up to 10% of normal nett pay but anything over that was split 50/50. That's if it's taken as overtime. A bonus maybe deemed a windfall so IVA gets it all. Speak to your IP and clarify now then you know.

Hi the bonus is not a windfall, it is extra earned income and will be treated under the 10% 50/50 rules ( or maybe a straight 50/50 split, according to which clause you have in respect of extra income). Windfalls are generally unearned income like lottery wins, inheritances and the like.

Extra income should be notified to your IP as soon as you get it and the extra paid into the IVA within 14 days ( unless agreed otherwise). This should all be detailed within your proposal paperwork.

Thank you, I do believe it's the 10% 50/50 split, I will give them a call next week and have a chat with them, it won't hit until the end of June so best talk to them now and let them know what is happening.....thanks once again for the help

I was told at the start of my IVA that both overtime and bonuses are 10/50/50. I dont know if that is the case for every IVA but I cam imagine it being along them lines.

What do you mean by Holiday bonus? When I was paid holiday pay instead of taking the time off I was allowed to keep it all, any bonus was 10/50/50

the bonus is 35% of my five weeks annual leave so after tax and NI it comes to around an extra £1500 in my wages at the end of June which I would use as Holiday pay

Well my Ip considered holiday pay mine as it's part of your salary

Clanger, do you give up part of your annual leave, or is the bonus just calculated on your annual leave. In recovering's case I believe he was paid for leave untaken, which is not the same as a bonus (reward) payment.

I think that payment for leave untaken is the same as payment for extra hours worked.

Ergo - the 10/50/50 rule applies no?

In theory, Hubert, but different IP's have vastly differing approaches to what is supposed to be a pretty standard arrangement.

Foggy,just been informed that the Holiday pay is part of my annual pay and is taxed and pensionable so it just happens to be paid to me in one lump sum

I would think it will fall under the 10% 50/50 rules, if that is the version you have got ( or 50/50, if you have the version I had). In any event it has to be declared to your IP who will tell you which way he prefers to jump.

Just spoke to the IP and they will not review until February next year,and they will just want to look at the pay slip and a note from my Emploter stating that this is part of my yearly salary and not a bonus

Fingers crossed Clanger. To be on the safe side I would stash half of it away ... just in case.