Bonus payments - how are the calculated

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nicola715

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Post by nicola715 » Tue May 26, 2020 12:31 pm
Hi,
So we are subject to the 10/50/50 rule as my husband gets bonus from time to time - joint iva

We are due our annual review in july/August so checking all our figures from the past year.

The 10/50/50 rule is causing confusion. Is this calculated via ur p60, sorta like a rolling year or by each bonus payment individually? As in is it 10% extra over the full year then the 50/50 or is every bonus treated independently

Thanks in advance

Foggy

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Post by Foggy » Tue May 26, 2020 12:40 pm
Unless you have a fluctuating basic income it is usually dealt with on a monthly basis. So, say the agreed base income is £1200 per month you are allowed to earn an extra £120 before splitting the excess bonus / overtime with the IVA. Sometimes, if, say, the bonus is an annual thing the IP might agree to deal with it differently.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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nicola715

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Post by nicola715 » Tue May 26, 2020 12:41 pm
Thats exactly what i thought. Thanks for clearing that up foggy!
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