www.iva.co.uk

Please forgive an obvious question, but when is it that I have to pay 50% of increased income and when do I have to pay it all into my IVA?

For example, if I win on the Lottery that is presumably a windfall. But if I get a new job, or an additional income, then that is presumably just an increase in income?

To take an extreme example, say I were to write a successful book and be paid say £30k for it. Would this be a windful or additional earnings? And how much would I need to pay into my IVA?

Hi dickie, It will be interesting to see how the experts respond but I think any extra income (i.e. payrise or switch of jobs) will be 100% swallowed up by increased payments into your IVA. If you work overtime you can keep up to 10% of you net monthly income and after this any further is split 50%-50%.
If you got a second job all this extra cash would be paid into the IVA.
Not sure about the book example.

Check your IVA paperwork. Have you written a book or is it all hypothetical?

Let your IP know ASAP with regards to windfalls or pay rises.

Remember that it is 10% of your monthly so if you get £2000 take home a month and get a bonus in a month of another £2000 you only get to keep the first 10% (£200) and then 50% of the remainder (£900) so £1100 in total... (as opposed to taking home £24000 in year and thus the £2000 in less than 10% so you could keep it all)

Anyway that is what I have been lead to believe.

Gary is correct.

We had extra wages last month, our proposal states that we have to inform our IP (melanie) within 14 days, and send the money within another 14 days of that.

I just sent the cheque the week after payday, I find it easier to do that. I still felt rich with the extra 40%, all mine!!!!! It previously went to our horrendous cc bills.

Sharon x

Thanks everybody for your kind responses and I'm sure I'm being thick but I still cannot get my head around when it is a windfall and when it is a bonus/OT.

From the above it would appear that bonus/OT has to be paid at 50% after 10%, but a new job with higher wages would constitute a windfall.

So (hypothetically), I work at Tesco at my net income is £600 per month, and my IVA is based on that figure. I do some overtime and take home an extra £100. So I keep 10% of the extra and send them 50% of the remainder, i.e. £45.

I leave Tesco and get a job at Asda and take home £700 per month. I then have to pay £100 into my IVA.

OR

Instead of working overtime at Tesco I get some local PT bar work which pays me £100 per month and I send it all to my creditors.

Is that really how it works?

There doesn't seem to be any logic in overtime on an existing job being considered differently to earning a higher income at a new job.

And yes, the book thing was hypothetical. I can't write to save my life and even if I could I would make sure I had this information to hand before I set out!

Hope someone is able to clarify further - sorry to be so dense.

I agree it doesn't make sense. If someone wants to take a second job and earn some spending money for themselves and their family, they should be able to. At the very least it should be treated like overtime (i.e. split so both creditor and debtor benefit).

I asked my IP the same question as my take home went up £100 per month & was told I would be asked to pay 50% of the extra to the IVA, it's ridiculous how it varies from company to company.

Hi
My take on it is this
If you change jobs and your main job means a payrise then come your annual review you will fill out a new income and expenditure form and will then pay a new monthly figure based on your disposible income.
If you take a second job then this should be treated 50/50 otherwise why would you do extra work for no personal benefit other than the fact that you can repay your creditors more ?
I would treat a lump sum from writing a book as a second income and that should be treated 50/50
Regards

I guess it all depends on what was agreed in your proposal, effectively all extra money should really goto the IVA if you have budgeted correctly and at the annual review the figures can be reassessed.
But then I also agree that if you are working extra to award yourself a treat then it should be possible but upon agreement with your IP?

I agree with Andy and any reasonable IP will be able to reach a settlement suitable to all. If you treated a second job as a windfall and there is a £500 allowance does this mean that the first £500 each month is disregarded? A new job means a new I&E and the payments calculated from this.

Michael and Andy, I have a question for. If I am given some money by my parents (not an inheritance or anything) can I keep this? and spend as I choose? For example, could I go on holiday or invest it?

I guess it depends on how honest you are and whether it has to go into your bank account....

Hi
Yes, it is a gift and not a windfall.
Not as sure about an investment as any growth in money could be seen as a windfall.
Holidays paid for by family, no problem but money to invest ? a tricky one
Regards

Hi Gary, guess you are right but I want to do everything above board and thought I read (from Melanie I think), that cash presents do not need to be declared