Season Ticket Loan / Net Pay Calculation

[seaxe98]

Hi folks

I'm in an IVA approved last October. I just received a bonus, no huge, but something nonetheless. I'm confused about Payplan's calculations on how much I can keep as I think I should be able to keep all of it.

My payslip says net pay of £3131 PCM. This is after my season ticket is deducted of £325 PCM.

They are working out 10% of £3131 which is £313 and adding it on. To make £3444.10

My net pay this month incl. bonus after everything is £3776.00

They are saying that everything over £3444.10 is divided 50/50 between myself and the plan. Makes sense. That would be £331.90 divided by 2 = £165.95.

So in total I'd keep the 10% £313 + £165 = £478.00. So far the maths makes sense.

However my concern is why is my season ticket not taken into account - it's expenditure!

If you ignore what my payslip says at the bottom my REAL net pay is £3456.00 (£3131 plus £325)

If you then do the same maths as above it works out very differently...

£3456 x 10% = £345.60

£3456 + £345.60 = £3801.60 which then makes my full bonus allowable as £3776.00 total for this month is under that figure.

Can anyone please offer thoughts on this?

Thanks

[Foggy]

Simply -- if you seek to add £325 to your income figure ( which is what you are doing for the purposes of your latter calculation) then this will increase your disposable income accordingly, adding £325 to your IVA payment every month. Although you say that this is expenditure (travel) you will already have been made an allowance in your expenses for travel, which, if also covered by this £325 added to your income, would need to be rescinded and, agau=in added to your disposable income. So --- this can go one of three ways:

1) Take your IP's calculations at face value and pay a one off of £166
2) Get them to add that £325 to your net income (as per your arguement above) and pay £325 extra towards your IVA payment every month and keeo the whole bonus. Or
3) Remove the travel allowance from your expenses and add this to your IVA payment every month.

I do not know what the relative figures are, but assume option 1 to be the more beneficial in the longer term.

[seaxe98]

Simply -- if you seek to add £325 to your income figure ( which is what you are doing for the purposes of your latter calculation) then this will increase your disposable income accordingly, adding £325 to your IVA payment every month. Although you say that this is expenditure (travel) you will already have been made an allowance in your expenses for travel, which, if also covered by this £325 added to your income, would need to be rescinded and, agau=in added to your disposable income. So --- this can go one of three ways:

1) Take your IP's calculations at face value and pay a one off of £166
2) Get them to add that £325 to your net income (as per your arguement above) and pay £325 extra towards your IVA payment every month and keeo the whole bonus. Or
3) Remove the travel allowance from your expenses and add this to your IVA payment every month.

I do not know what the relative figures are, but assume option 1 to be the more beneficial in the longer term.

Thanks. Still not entirely sure what this means and why I'd be penalised. There is nothing in my expenses for train travel. I was told it wasn't necessary to have it there as it was deducted from my pay and I wasn't going out and buying a train ticket monthly from my bank account.

I had to send a scanned image of my photocard and train ticket for the year as part of the IVA application as I needed to explain what the amount was for.

I'm not planning to increase my income.

Effectively my net pay is UNDER REPORTED and should be £3456
Effectively my expenses are UNDER REPORTED and should go up by £325

The maths works out to ZERO.

I don't have any additonal surplus each month - it's just a case of why my travel expenses weren't properly shown as expenses - bad advise by Payplan I guess.

I most certainly don't magically have an extra £325PCM to pay into my plan.

[Foggy]

ah -- that makes sense --- yes ... you are correct with the "unreported" statements. As they haven't made any allowance for this travel in your expenses as, as you say, one would cancel out the other ( I was assuming that they had allowed travel in expenses, which would have meant you being allowed for this expense category twice). Broad as it is long I guess, but sloppy accounting by Payplan.

So, yes, their "sloppy accounting" does under represent your income for the purposes of calculating the 10% disregard. I agree with your first arguement.

That all said -- and this might be why it was done this way --- if you had added in the £325 to your income and hoped to negate it by way of an identical expense for travel, there is the possibility that creditors would have tried to reduce the allowance ( as is their right ) as the guideline figure for fuel and parking is around £125, with a maximum of £200.

Never black and white !!!