New work bonus is worrying me!

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Pigger479
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by Pigger479 » Sat Sep 23, 2017 10:16 am
Hi guus Im now into my IVA and things are settled down and I finally feel in control! However my earnings seem to have increased every month due to a new work bonus and increased overtime . I've paid extra into my IVA every time I went over the threshold so I'm being honest but I'm worried that come review time my IVA payment Is also going to rise which we can't afford. I work for a utility company so some months can be massive money and some months just normal due to overtime etc ... will an average be taken over the 12 months when they do the review? This bonus won't last forever so I'm worried that my payments will go up next year and the bonus will be removed and I'll be struggling with my payments. Sorry for the essay!!
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Foggy
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by Foggy » Sat Sep 23, 2017 10:31 am
Check your paperwork -- it should differentiate between bonus payments and regular base income. Who is doing the calculations each month to determine how mucg you pay in extra ?
Pigger479
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by Pigger479 » Sat Sep 23, 2017 10:37 am
I read the paperwork and it's said I was allowed to earn 10 percent on top of my monthly earnings every time I have gone over what I worked put as 10 percent I have phoned my IP and they calculated the amount which I paid to them on my debit card .
Pigger479
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by Pigger479 » Sat Sep 23, 2017 10:42 am
I just don't want to get to review and it looks like I've earned more than I said I normally do... the payments go up and I'm working 60/70 hours a week so stay float
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Foggy
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by Foggy » Sat Sep 23, 2017 10:48 am
Pigger479 wrote:
I read the paperwork and it's said I was allowed to earn 10 percent on top of my monthly earnings every time I have gone over what I worked put as 10 percent I have phoned my IP and they calculated the amount which I paid to them on my debit card .



Hopefully they are only taking half of what is over the 10% !

If they are calculating it every month under the 10% 50/50 rules then they cannot turn around at the end of the year and say it's regular pay and increase your payment accordingly ... they only get one bite of the cherry !
Pigger479
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by Pigger479 » Sat Sep 23, 2017 10:52 am
Yes sorry should of explained better they take 50 percent of anything over 10 percent. So does this mean I'm free to keep my overtime up and keep earning that bonus? We're trying to save for a full and final!
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Foggy
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by Foggy » Sat Sep 23, 2017 10:58 am
Pigger479 wrote:
Yes sorry should of explained better they take 50 percent of anything over 10 percent. So does this mean I'm free to keep my overtime up and keep earning that bonus? We're trying to save for a full and final!


As long as they play by the rules (which they should do) -- Yes :-)
Pigger479
Posts: 38
by Pigger479 » Sat Sep 23, 2017 11:05 am
Foggy wrote:
Pigger479 wrote:
Yes sorry should of explained better they take 50 percent of anything over 10 percent. So does this mean I'm free to keep my overtime up and keep earning that bonus? We're trying to save for a full and final!


As long as they play by the rules (which they should do) -- Yes :-)


Fantastic news!!!
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Michael Peoples
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by Michael Peoples » Mon Sep 25, 2017 8:45 am
Foggy is totally correct. At the review stage your base salary should be used for any uplifts as bonuses, overtime etc have already been addressed. However, if your expenses have gone up you could increase the base figure by any guaranteed overtime to cover these increases. This would give you a higher figure going forward on which to calculate the 10% 50/50. I hope this makes sense.
Pigger479
Posts: 38
by Pigger479 » Mon Sep 25, 2017 9:51 pm
Michael Peoples wrote:
Foggy is totally correct. At the review stage your base salary should be used for any uplifts as bonuses, overtime etc have already been addressed. However, if your expenses have gone up you could increase the base figure by any guaranteed overtime to cover these increases. This would give you a higher figure going forward on which to calculate the 10% 50/50. I hope this makes sense.


Sotry am I being abit dim? I'm not following?
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Michael Peoples
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by Michael Peoples » Tue Sep 26, 2017 10:10 am
If your IVA payments are based on a net salary of £1,000 then you keep the first £100 of extra money and divide the rest with creditors. If your expenses go up by £100 and you use a base salary figure of £1100 then you would not have any extra payments to make as the extra salary is eaten up by additional expenditure. However, you now keep the first £110 over and above £1100 before dividing the remainder so this work in your favour.
Pigger479
Posts: 38
by Pigger479 » Tue Sep 26, 2017 11:01 am
Michael Peoples wrote:
If your IVA payments are based on a net salary of £1,000 then you keep the first £100 of extra money and divide the rest with creditors. If your expenses go up by £100 and you use a base salary figure of £1100 then you would not have any extra payments to make as the extra salary is eaten up by additional expenditure. However, you now keep the first £110 over and above £1100 before dividing the remainder so this work in your favour.

Ahh I see!! I'll bear that in mind. Thanks !!
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Michael Peoples
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by Michael Peoples » Tue Sep 26, 2017 11:46 am
I hope it helps you and glad I explained it a bit better this time!
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