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If overtime is worked on a regular basis, but is not guaranteed, would this be taken into account in annual review? or if 50% is paid over each month, would this be ok instead.

just hubby is working overtime now and then.. not in IVA yet, just wondering how it works..

Hi angela.
Ours is worked out like that as it varies from month to month so we do as you say pay it over each month.

Ang

thanks ang, hopefully ours will work like that x

You are allowed to keep the first 10% of all overtime earned, and then the 50/50 split is applied. It is sensible to pay these additional monies over as they are earned, but technically they just have to be paid over by the end of each year.

We do quarterly reviews in my office, just so people are alerted to the need to pay over additional monies if applicable.

thanks Melanie, thats what we would prefer to do. Would rather pay anything over straightaway, that way nothing needs to be kept to one side and no worry to whether enough in pot at end of year

I pay my husbands extra over every month and I'm with Melanie. He's paid weekly and it all depends on what hours he works, extra hours not guaranteed but all helps

thats the way I see it, huby was working 12 hour shifts 7 days a week to keep our heads above water, his health suffered as did our marriage!! Never want to be in that situation again. Hubby still has the chance to do OT now and again but the change in him since applying for IVA process is amazing. He still wants to do some for a little extra, but then again it isn't always guaranteed.

He virtually turned into the factory cat!!

So to be clear.... my usual monthly pay is £1850 net. Say I work overtime the same month and get £300. The way I see it I keep £30 and the remaining £270 is split £135 to me £135 to creditors. Have I got that right? The reason I am asking is I am sure I saw a post where the 10% then 50% rule was explained as 10% of £1850 (£185) is kept from the overtime and the remaining split 50/50 with creditors. So in the above case that would be 300-185 = 115 split 50/50 only leaves £57.50 for creditors. The first method seems more sensible

angela18 wrote:

He virtually turned into the factory cat!!

LOL pre IVA I had a rep as willing to work any shift anytime but no longer!! I'm not quite the factory cat but it's nice to have the option to turn down a shift if I want [:)]

This is interesting, we have been told that the above rule will only apply when we earn over 10% of our take home salary. So in your case maxdebt, the rule would apply after 185 earned. Please someone correct me if this is wrong.

Sorry, must have had too much sleep in my eyes, just realised I've put down exactly the same as you. DOH!!!

Bear in mind the other provision that is becoming the norm.......

Where overtime is "routine" (which I define as regular and/or as part of the contract) the rule is 50% of net income i.e after increases in costs of living. My interpretation of the 10% then 50% provision relates more to one-off overtime, and bonuses etc.

Check with your IP on where he or she stands on these provisions.

Ian

You're right Ian, overtime is only now and again for us, sometimes none for months on end. This being the case, we are not included under the "routine" o/t in our proposal.
Relying on o/t has been a major contribution to our current situation, living beyond our means etc. I, like many others, have been doing 12 hour shifts just to keep up with minimum payments. At least now we may benefit when there is the oppurtunity to work extra.

Some of these recent changes in provisions are really good in that firstly everyone knows where they stand. Secondly, I have always subscribed to the view that the creditors must share in the success rather than take all of it, otherwise what's the point? The current provisions in regular use at least go some way towards providing some balance.

Ian

Ian

In my IVA, the 10% rule isn't defined to exclude routine or regular overtime so I retain around £200 each month before having to apply the 50% rule. I calculate this as per Melanie's comments above (i.e. 10% of usual take home pay, then half of any surplus)I send a cheque each monthl, showing the calculations and (thus far anyway), this has been deemed ok.