www.iva.co.uk

Hi guys,

I have been paying 50% (over my 10% allowance) of any overtime into my IVA regularly and understand how that works. However I will be doing a lot of driving for work over the next few months and will be entitled to claim my mileage back. Obviously I will have had to have forked out to put the extra petrol into my car in the first place.

I'm not sure if the mileage claim will be seperate from my wage slips in the form of a seperate payment or whether it will just appear on my wage slip and therefore mean I will go over my allowance. If it does appear on my wage slip am I obliged to pay the 50% as if it was overtime? Or can I deduct it as in essence I am just getting back money I would have already paid out for the petrol in the first place?

Any ideas? Thanks in advance for your replies.

As far as I know you won't have to pay the mileage allowance into your IVA as this is money that you have already spent.

If it isn't seperated on your payslip explain this to your IP and show them the petrol receipts and you should be fine.

Skippy is right - you don't have to pay any of that across as it is money you have already spent.

In my previous job I got 40p per mile and my IP agreed to split this 30% Fuel (12p) 30% Maintenance (12p) and 40% Depreciation (16p). Was only usually £60 per month max, and as such didnt count "income". This shown on my payslips.

I opened up 2 savings accounts, one for Fuel, and one for the rest, and transferred the money over every month. I also transfferred my regular allowances over as well. As I put Fuel in, I moved money over to my "normal" account. AS I had repairs done I moved money over too. Seemed to work OK

In my current role I only get 25p per mile. SO now thats 50/50 Fuel and maintenance. Is now averages nearer £250 per month in total. Again it doesnt count as "income", and this time doent show on my payslips.

However.

The biggest problem I had was initial cash flow, as I was using an extra £100-£150 on fuel, and wouldnt get paid till the end of the following month, so I had to stump up 2 months fuel.

Naturally I asked my IP if I could reduce my payments in month 1 and 2 (by £100) and repay the £200 in month 3, which she agreed to. Was a bit tight as I was having to do extra mileage as I had just started and need to shadow a colleague, but worked out in the end.

Of course having Melaine as an IP, taking a very practical and sensible view on it all does help.

I remember all of those chats we had PBH - it seems a long time ago now! Common sense must prevail for IVAs to run successfully, and IPs should not be taken money from their clients which is unaffordable or they are simply not entitled to.

Would this not be picked up when the IP looks at the P60? I assume that a P60 only shows actual earnings and not reimbursenments for things such as expenses?

if payroll is set up properly, mileage should show seperately. Remember, what you claim back covers fuel plus wear and tear, so no profit is made (in reality you're lucky if it breaks even).

Thanks guys,

Luckily Melanie is my IP too so sounds like I will be ok [:)]

I was concerned that it would show on my P60 if it wasn't on the wage slips and I would then be faced with a bill at the end of the year. Once the payments start coming in I'll speak to someone at Melanies office to confirm it's ok for me to keep.

Thanks again.

It might be shown on your P60 or declared by your employer on a P11D. In any event it is not income and you would be able to make a claim against the Revenue for tax relief on such payments which in the main is to cover running costs and depreciation. Even if Melanie (who takes a pragmatic view and one I would concur with) is not your IP discuss it with whomsoever is and come up with a practical solution.