www.iva.co.uk

My iva approved with hubbys Jan 2008. One question ,my hubby has the overtime 50/50 in his iva .Although he is not guaranteed overtime ,he only gets paid for the hours he works(one week day shift one week night shift)so Clearstart have worked out his wages (average ) as £980 per mth .He is paid weekly .So my point is if he does some overtime,if its available, then doesnt get any more overtime for 2 mths say what happens at our review. Any help would be grateful . Its confusing for me to explain.

Anyone with any advice?

Hi Rachel - sorry for the delay but the forum has been out of action for most of the evening.

I always find it a little dangerous to work salaries on an average basis, as this does not take allowance of weeks where you will only receive basic pay. However, if they have built in overtime to the general calculation, which you suggest that they have, he will only need to account for 50% of his earnings in excess of the £980 per month.

I suggest that you work on an average weekly figure of £226 - and set aside 50% of all earnings he receives in excess of this in a separate deposit or savings account. If there are some weeks when he earns less than this, you can release monies back from the savings account, but in this manner you ought to have the money available to pay over the the IP at the end of the year.

Hope I have understood your post properly.

Thanks Melanie ,what did you mean at the end of your post about having money available to pay over the ip at the end of the year ?

It is complicated my hubbys wages in the fact on night shift he could work 60 hours if really busy but if not he could only get 40 hours in that week .Now on a day shift his hours could be only 34 hours.So it varies week to week. Usually in the month though he does some overtime but that is only to make his wages upto £980 per mth. So if we dont go over the £980 are you saying we have nothing to worry about.

Having the money available to pay the IP at the end of the year, means the extra money from the 50% uplift provision - if indeed he has earned any.

Yes - you have nothing to worry about if his earnings do not exceed £980 per month. I suggest that you set up a little spreadsheet - you will probably find this easier to do on a weekly basis in line with his payslips - and compare his actual earnings to his weekly average - ie £226 per week. I will do you a little example:-

Week 1 - he brings home £260
Week 2 - he brings home £240
Week 3 - he brings home £215
Week 4 - her brings home £210
Week 5 - her brings home £226

The uplift would be calculated thus:-

Week 1 - £260 minus £226 equals £34 - therefore you need to set aside £17 (50% of the uplift)

Week 2 - £240 minus £226 equals £14 - therefore you need to set aside £7

Week 3 - £215 compare to £226 leaves you with a shortfall of £11. You therefore need to adjust this from the monies you have already set aside (but only allowing yourself 50% of the shortfall) So you now owe £19 in total

Week 4 - Calculate on the same basis as week 3 - so the shorfall is now £16 and you therefore reduce your 50% provision by £8 - leaving £11 payable.

Week 5 - No adjustment needed.

Hope this makes sense!

Thanks Melanie very much . I can see now how to do it properly.It is a confusing situation ,but you have explained it perfectly . Thankyou for all your help.

Its harder when paid weekly. I do it like that for monthly and it has worked out perfectly for review. Luckily they take all the expenditure and payments off hubby's wage and leave my weekly as part of the expenditure, though I still have to keep track like this as my wage varies if on holiday and creates a shortfall.
Still just droning on here.

All the best Rachel