Increases in earnings if you have an IPO/IPA

MrsST

Sorry if this has been asked before but I'm not having much luck with the search thingummy

We are anticipating being landed with an IPO/IPA (not sure of the difference) and I know that anything over and above £99 disposable income is liable.

Do they take ALL disposable income over the £99? If not, is there an average percentage that they will take?

DH is self employed and has the option of what jobs he takes (when he's lucky enough to be working) and therefore, his rate of pay can increase. He also has the option of doing overtime as and when he wants to.

What I'm trying to find out is if there is actually any point in him working towards better pay or overtime. We certainly don't want him working harder than he has to just to benefit everyone but us. If, however, we will get a percentage of it, then I know he would be more than happy to work the extra.

If anyone can help me, I'd be grateful.

TIA x

Purplekylie22

An IPO is an order - you dont have a choice IPA is an agrement, you agree with it.

They take half or all of you dispoable income, although a lot depends on what your personnal circumstances are to detirmine your disposable income. It varies a lot a I think... hope that is some help.

MrsST

Thank you.

I'm hoping that we won't have to sacrifice all of it as we need to put some money away to cover times that DH might not be working. The industry that he works in is so flakey at the moment and we can't afford to be without any income at all.

Purplekylie22

Oh, I know what you mean - these arnt good times a tthe minute, the price of oil seems to disrupt everything! The best thing you can do is say to you OR that you really dontknow what your OHwill be earning because he doesnt have a steady job and that you can update them each month if they wish with earnings for that month, but you really cant give any estimates that would be acurate.
I think that is about all you can do. But honestly - your OH is probabily better off at home with you than doing lots of overtime when you wont see much of the cash...

MrsST

I think that's the best plan for us really. I hate him working 6 day weeks anyway as we have 2 year old twins so I look forward to the help!!

I'll note your suggestion about offering to update each month as we just don't know what is happening at the moment. He's only worked 1 week in the last month

Thank you again x

Purplekylie22

Oh dear, thatsnot so good, at least with Twins, they will drastically reduce the amount of your dispoable income, I am lone parent and with £14K a year salary and 6K a year tax / working tax credits, I am still a longway off from having any dispoable income.. make sure you put down everything you can think of for outgoings...if you post it here when you have sorted it out, most people will comment and let you know if you can increase figures / reduce them e.t.c

tigerfeet2006

MrsST, there is a sliding scale going from 50% to 75%. So if you have a £100 disposable income then you pay 50% to the OR and if you have £450 disposable income then you pay 75% to the OR Hope that helps somewhat.

PixiePie

Just to echo they will not take 100% of your surplus, no matter how much or little (over the £100) you have surplus in an IPA/IPO, and if you have a variable income the OR usually asks for three months payslips/returns and averages them (if they are average-ish months in themselves - if that makes sense), so you should get a payable amount.

dalip

Hi i had £117 suplus and my OR took £50if that helps mrsT.D

Whoops just saw that read as sTD:rotfl: :rotfl:

mej24

An extreme example, but If you had £99 surplus they would take nothing right?

But if you had £101 surplus do they take £50.50 (50% of £101) or £0.50 (50% of the £1 surplus)?

fiveyearplan

I think its 50% of the whole £101.