Paying IVA for overtime

Get expert opinion. This is the place for new questions to be posted.
3 posts Page 1 of 1

Bob451

Posts: 13
Joined: Thu Jun 10, 2021 3:25 pm

Post by Bob451 » Fri Jun 18, 2021 1:18 pm
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

Foggy

User avatar
Forum Expert
Posts: 32769
Joined: Fri Dec 17, 2010 11:14 am
Location: United Kingdom

Post by Foggy » Fri Jun 18, 2021 1:36 pm
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
http://foggy.blogs.iva.co.uk

luluj

User avatar
Forum Expert
Posts: 11157
Joined: Sun Dec 09, 2007 6:54 am
Location: United Kingdom

Post by luluj » Sun Jun 20, 2021 3:16 pm
We always paid ourselves across each month as that way the annual review held no surprises.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"
3 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”