Hi all
Just starting out on a IVA, as I understand it any overtime you get or windfalls must be paid after your 10% been deducted to your IVA.
How is this done? Do you contact your IP straight away? Is this done yearly after you have sent your payslips etc for your assessment ?
Thanks
Windfalls -- unexpected income, not usually work related -- if under £500 it is all yours. If over £500 it is all theirs. Should be declared as and when they happen.
Overtime and bonus payments -- fall under what we call the "10%, 50/50 rule": On a monthly basis (though some will do it at other agreed intervals) extra income is to be accounted for to the IP. The first 10%, based on 10% of normal, agreed, basic pay, is ignored ( you keep that). Then the balance is split 50/50 with the IVA.
So, say your normally take home £2,500 a month and, one month, you get £400 overtime. Deduct the 10% of usual pay - £250, leaving £150 to be split 50/50, so £75 each ---- the IVA gets £75, you get £325.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
