How would they calculate random extra work?

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snailmail
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by snailmail » Sun Apr 29, 2018 8:42 pm
I have a full time job and I used to sometimes work for my father in law. Only a few thousand pounds a year. I used to submit a tax return every year but when I applied for my IVA I said I wouldn't do it any more.

My father in law is now begging me to do some work for him. How would contributions be calculated for IVA? It's not regular enough to 'forecast' what I might earn in a year and I probably won't do it for more than a few months. Will it be the 10/50/50 rule - and if so will the 10% be calculated from my PAYE wage? To complicate matters - I've also had a pay raise in day job (see last post) which is not going towards my IVA until my annual review (in 11 months!!)

Don't want to take the piss - just trying to understand how it should be calculated?

Thx
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Foggy
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by Foggy » Mon Apr 30, 2018 6:47 am
I had a similar thing during my IVA -- full time PAYE and part-time on / off business. My 10% 50/50 clause was just 50/50 (!) and, in agreement with our IP, we split the extra income three ways: third for tax & NIC, third for the IVA and a third for us. This was done on a monthly basis, at the end of each month and payment made manually into the IVA account. This is treated the same way as overtime and the 10% disregard is based on your regular PAYE income, as currently assessed by your last review. Explain to your IP and get an agreed plan of action in writing.
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