Hi good people I am on IVA since January this year and due my irregular payroll periods (4 times a year 5 weeks pay and 8 times 4 week pay). My IVA company informed me that I can pay any uplift money owned with accordance to the 10 % 50/50 clause during my annual review.
In that circumstances how this will be counted :
1) The 10% 50/50 clause will be applied to the each month, which will be not easy when I get paid for 5 weeks
2) My one year income (52 weeks) Net pay for 12 months from my payslip added together and check with sum of 12 moths net pay contracted hours ( annual take home pay) agreed on iva. In order to check if there's any uplift money to pay into IVA over 10 % of my contracted income.
I will show it on numbers (examples)
My contracted monthly income agreed on IVA meeting based on my contracted hours.
1200 net pay Multiplied times 12. Will give sum of my one year net contracted income of 14.400 £
So I will be allowed to keep any overtime which will stay under 10% rules so it will be an extra 1440 £ in year anything over 15840 will be paid into an IVA with accordance to 50/50% rules.
This situation when some clients are due irregular payroll periods are allowed to pay their any potential money over 10% of contracted hours due their annual review are in better situation than people who pay it on monthly basis. Because when some of the months you will get sick and don't get your contracted planed monthly income during the one year review all 12 months net pay added together will include this low paid months so you will be able to some of the months do more over time and the figures will stay under 10 %.
I'm not sure on this but suggest you speak to your IP and ask them to clarify it for you and also put it in writing.
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
Different IPs will approach this in different ways ! So, you need to chat with your own IP to see which they prefer. Many will average out the pay so, in the 4 weekly periods you will actually get a little less that the average, and on the 5 week periods you will get a little more (but, also, your 10% disregard will be a little higher).
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