www.iva.co.uk

If i earn and bring home say £1400 net pay and did some overtime
to boost the pay to £1500 how much would i have to give to the IVA.
Is it possible for someone to give me an example of this as i have a temporary job of which i can do extra hours but feel too scared to do it in case they bump up my IVA payments.

Is it 10% of your net income is yours

50% over the 10% goes to the IVA.

I am happy making my normal payment but not too sure whether doing extra hours will be worth doing or is it!!!

Hi Andrew,

I am unsure were the 10% has come from.

Normally the clause would state 50% of any additonal overtime or bonus received after deductions. So if you normally earn £1,400 after deductions and earn £1,500 after deductions with overtime then you would have to pay £50 into the IVA.

Hi
It varies from IVA to IVA,however if you keep 50% of any net overtime earned to one side for your IVA then you will be safe.
Regards

Some have a clause where you can earn up to 10% extra before it alters the monthly contributions i believe.
Im sure thats what i have read on here

Carl

You may or may not be aware that TIX brought out their own protocol several months ago which IPs were asked to follow. Some did and some did not choosing rather to have their existing terms and conditions modified.

It was from the TIX protocol that the debtor was allowed to keep the first 10% of any additional earnings, and I for one have now incorporated that into my standard proposal documents as I feel it is a very fair. Perhaps you do not use this in your own practice.

Thank you for correcting me Melanie, having checked the TIX modifications I now know were the 10% / 50% rule comes in place - see below

"The Debtor shall report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation and where the sum exceeds 10% of the Debtor’s normal take-home pay. Disclosure to the Supervisor will be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall then be paid to the Supervisor within 14 days of the disclosure. Failure to disclose any exceptional overtime, bonus, commission or similar by the Debtor will be considered a breach of the Arrangement and the Supervisor shall notify the Creditors in the next annual report with proposals for how the breach is to be rectified."

So i guess Andrew if your IVA was approved and TIX voted on proposal then this will stand but you would need to check your propsal for the exact wording.

I have nothing written about overtime in my IVA, I just have to hand in my last three payslips at the annual review. Does that mean I have to give all my overtime to the creditors? We are two years into our IVA.

So in the example above, normally earn £1400, one month earn £1500, ie £100 extra, less than 10% (of the "norm") so keep it all?

If it was £150? pay 50% (like errm normal), ie £75?

It's just that i find it a bit confusing,
i feel safe in the knowledge that if i do my standard hours of a 40 hour week and get my net pay monthly with no overtime i know where i am with the IVA as the payment is more or less fixed.
It's if i ever do overtime, do i pay it 50% into my IVA monthly to be on the safe side or do i put it into a savings account and pay the 50% at the end of the year.
I find the 10% and 50% issue maybe a tad confusing does anybody else feel the same way.

Andrew

You are accountable to your IP for 50% of the monies you take home in excess of 110% of the figure that you disclosed in your IVA proposal. Or another way of looking at it is that you can earn up to 10% more than you disclosed in your IVA proposal before worrying about handing anything over.

Does this apply to all IVA's?

Thats good news Melanie,
but i do find the overtime issue maybe confusing or maybe it could be a dangerous thing as you could get a client who has done overtime and has been a bit naive and kept the 50% in his savings or jar and something has happened and they are tempted to spend some of it , therefore putting there IVA at risk.
I personally think that you are better off declaring it monthly and discussing with your supervisor as us IVA'ers are not Accountants
and are prone to making errors of judgment.

I have this modification in our iva too. And this is how I understood it to be.
You can keep the first 10% of extra earnings then you pay over 50% of the other 90%
So for instance if you earn an extra £200.00 you can keep the first £20.00 without telling your IP, that leaves £180.00 and then you pay over 50% of the £180.00. So the total you pay over is £90.00
maybe I am wrong ??? I am sure someone will correct me.

That's correct Caraf - and don't worry about your case Andrew. My staff will ask you to send over your wage-slips every 3 months so that we can calculate whether there are any monies due. If you want us to look at them on a monthly basis for you that is absolutely no problem either.

I have the 10% overtime clause. I understand it to be if my wage net figure per month was £1500, and i did some overtime, which made my take home pay £1650. I would be allowed to earn an extra £150 per month before then having to pay over 50% of that. So i could keep all of the £1650 without paying any over. Is this correct? Anything over the £1650, i would have to pay 50% over to the IP