Questions about Individual Voluntary Arrangements and Insolvency.

Moderators: TalbotWoods, JaneClack

By kizzy
#158087 Our IVA stipluated that 50% of any overtime or bonus has to be paid into the IVA.
We have no problem with this but wondered how it would be worked out on an annual basis. For example, if we submitted a P60 for the last tax year (2006/7) + last 3 pay slips in November this year how will they work o/time out? We hardly earned any overtime last year but have earned a regluar amount so far this tax year - this won't show until next years (2007/8)P60 is produced. Or, will they wait until 1 full tax year is completed and delay the 1st review until next April?
Any info/experience would be appreciated.
Many thanks
K
By doemichael
#158116 check you proposal and see if it says how often this needs to be sent to IP.

Ours works like this....

income very irregular due to overtime so we send it in every 6 months along with ALL payslips. this is the easier way for us. We are just over 2 years into IVA and have sent in 4 payments to cover 6 month periods and IP has alwasy excepted it and never queried it. I would add that we do include all overtime. Some months we have no extra payment. We keep this 50% in the bank each month and only count 50% of it as ours.

I know some other people send in payslips, p60 etc at review then wait until IP sends them a letter asking for XXXX amount and if they have not kept this money aside it can cause problems.


If in doubt give your IP a ring and ask how they want to co-ordinate it. I have rang my IP on many occassions and they are great and answeer queries very quickly.
User avatar
By PipSqueak
#158119 Hi Kizzy

I had my first review a few months ago.

Throughout the year I had to submit payslips every 3 months.

My IP worked out the percentage of my overtime etc based on the income I put down on my Income & Expenditure form.

Your annual review will be from the start date of your IVA. So, if your IVA started on the 7th August 2006, then your annual review will be on the 7th August 2007. As far as I know, only the income received during that year will be taken into account.

Best wishes

PipSqueak
By kizzy
#158194 Many thanks for your replies.
Our agreement states that there will be an annual review on the anniversary of the start date of the IVA and that we should submit a copy of our P60's and the last 3 months payslips. I did ring the IP a couple of months ago regarding how they wanted us to deal with the overtime and they have told us to keep 50% of any payments to one side - which we have done. If they do only use last years P60 and the last 3 payslips prior to the review I don't see how they can correctly equate what we owe them for the year.
I think we'll just continue saving the money and wait until the IP tells us what he wants - I have only needed to phone them twice and found them quite dismissive - I felt like I was bothering them with trivialities! - it's a good job we have this forum to help guide us on our way!
K
User avatar
By spunky_monkey
#158205 i've just sent in my paperwork for my 1st 12 month review.

even though it states in the proposal/director report that they will ask for P60, they have only asked for the last 12 months payslips. The way they work out how much you owe seems quite simple - they work out the difference in the take-home pay compared to the monthly agreed amount for the 12 months and then expect 50% of it.

spunky
By Robinia
#158458 I pay 50% of overtime each month, just ring them and they take an extra debit. No nasty bill at review.
By kizzy
#158483 I think I will send a cheque off with the relevant pay slips - the amount is over £3500 so far and likely to be another £2k by the time the review is finalised. Better to be safe than sorry and we won't be tempted to spend any of it if its gone!
Many thanks for all your input.
K
By Robinia
#158484 Hi Kizzy remember if you have had rises in expenditure over the past 6 months you can ask for some of these to be offset against the overtime check with your company.
By £76K
#158532 Kizzy,

You can always talk to the bank & get a 1 month release account to put it in so it is not a case of just trotting along to the cash point. It will earn you interest each month as well
By kizzy
#158588 Thanks 76K - I have phoned the bank and they have agreed to open an additional savings account for us - I will transfer the money into that and at least earn some interest.
As for the expenditure, it has gone up slightly - petrol more than anticipated, school meals, council tax, water rates etc but I thought that was just something we had to live with for a year until we submitted a new I & E at the annual review - also, we have received a pay rise (just cost of living) but again have put 50% of that aside as well. Have we done the right thing?
K
By £76K
#158592
kizzy wrote:Thanks 76K - I have phoned the bank and they have agreed to open an additional savings account for us - I will transfer the money into that and at least earn some interest.
As for the expenditure, it has gone up slightly - petrol more than anticipated, school meals, council tax, water rates etc but I thought that was just something we had to live with for a year until we submitted a new I & E at the annual review - also, we have received a pay rise (just cost of living) but again have put 50% of that aside as well. Have we done the right thing?
K


Speak with the IP only they can give you a 100% correct response, the payrise would go towrds the addition expenses, all depends on how your IP views it but hey you are being prudent, you do the I&E at your review & pay over the additional they ask for if it is in the savings accountyou are fine
By kizzy
#158594 Thanks for that - I'll phone the IP and ask them again.
K
By £76K
#158596 Just reread, they have told you to keep to one side till the review. Chuck in the high interest account & wait till review time, wouldn't worry about the cost of living increase
By kizzy
#160470 Just another question.....is a "living away allowance" also classed as o/t, bonus etc? Reason I ask is that when Hubby works away he is given a daily amount - £25 to live on (this is paid in arrrears into his wage then he obviously pays tax & nat ins on that) . The amount is supposed to cover all meals, drinks, phone calls, laundry etc etc - it doesn't go far when you are staying in hotels!
K
User avatar
By spunky_monkey
#160494 you'll probably find that its 50% of any surplus income that is to be paid. ie if the £25 he gets is over and above the monthly figure that will already have been calculated for him, but he spends the entire £25 (and can prove it has been spent on hotels), then he won't have to pay any extra into the IVA. if he spends £20 of that allocated, then 50% of the difference (ie £2.50) will need to be put aside.

spunky