If I earn more ....

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kam178

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Post by kam178 » Wed Jun 02, 2021 6:59 am
I have an IVA, and need to ask for advice.

Lets say my salary is 1800, so I am allowed to earn 180(10%).
In this case I can earn up to 1980 monthly, but not sure how does it looks in situation I am facing now. Due to covid I had to take few weeks of forlough, so my salary at that time was around 1600 for 2 months.

This lead to my question, if I earn now 2100(120 over 10%) for 2/3 months, do I have to share 50% from this extra 120 or no as looking from year perspective I still earn less than 10% of extra threshold.

I think when review come and they check payslips/p65 they will notice that i earned more there and there but less there and there.

Thanks for answer.

kallis3

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Post by kallis3 » Wed Jun 02, 2021 7:21 am
You need to tell your IP about the changes in your salary now rather than at review. They may very well not do anything about it as it will average out but better to be safe than sorry.
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The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Foggy

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Post by Foggy » Wed Jun 02, 2021 8:46 am
Strictly, the question of extra income (as in overtime or bonus payments) should be dealt with on a month by month basis, if your basic income is fairly stable. But some IP's will deal annually. But the usual situation is that, on the months you get extra you pay extra and on the months you get less you still pay your regular amount. You are supposed to budget and save from the good months to cover the bad months.

The 10% disregard only applies to overtime and bonus payments --- a permanent pay rise is dealt with 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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kam178

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Post by kam178 » Wed Jun 02, 2021 8:57 am
Wed Jun 02, 2021 8:46 amFoggy wrote:
Strictly, the question of extra income (as in overtime or bonus payments) should be dealt with on a month by month basis, if your basic income is fairly stable. But some IP's will deal annually. But the usual situation is that, on the months you get extra you pay extra and on the months you get less you still pay your regular amount. You are supposed to budget and save from the good months to cover the bad months.

The 10% disregard only applies to overtime and bonus payments --- a permanent pay rise is dealt with differently.
Hi Foggy, maybe I was not clear, so once again.

My salary is 1800(that's what I get). From that I can do 180 as overtime and I can keep it, anything above is 50/50 - everything clear so far.

My question is: As 2 months were lets say bad as I received only 1650 due to furlough, and in other months I was earning lets say 1900(100 from overtime only) If I get now for example 2 months with 2100 - should I split that extra 120 by 50/50? I think I should not as overall I will be way under the yearly limit.

I have spoken with a person who helped me to set it up with IP and they confirm that I am right.

kallis3

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Post by kallis3 » Wed Jun 02, 2021 9:54 am
Belt and braces - get them to put that in an email so you are totally covered.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Jun 02, 2021 10:30 am
Wed Jun 02, 2021 8:57 amkam178 wrote:
Wed Jun 02, 2021 8:46 amFoggy wrote:
Strictly, the question of extra income (as in overtime or bonus payments) should be dealt with on a month by month basis, if your basic income is fairly stable. But some IP's will deal annually. But the usual situation is that, on the months you get extra you pay extra and on the months you get less you still pay your regular amount. You are supposed to budget and save from the good months to cover the bad months.

The 10% disregard only applies to overtime and bonus payments --- a permanent pay rise is dealt with differently.
Hi Foggy, maybe I was not clear, so once again.

My salary is 1800(that's what I get). From that I can do 180 as overtime and I can keep it, anything above is 50/50 - everything clear so far.

My question is: As 2 months were lets say bad as I received only 1650 due to furlough, and in other months I was earning lets say 1900(100 from overtime only) If I get now for example 2 months with 2100 - should I split that extra 120 by 50/50? I think I should not as overall I will be way under the yearly limit.

I have spoken with a person who helped me to set it up with IP and they confirm that I am right.
That's fine, Kam. If your IP says you are right, then you are right. All I was saying, to be clear, was that different IP's apply discretion and work these things out differently : either, as I detailed, on a month by month basis, as per standard terms, or averaging out as, it seems yours is doing.

2016 standard terms state:
Where you are employed, you must report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation, where the sum exceeds 10% of your normal take home pay. Disclosure to the Supervisor must be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall be paid to the Supervisor within 14 days of the disclosure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk
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