IVA Accepted - question about overtime?

minniesmommy

My IVA was accepted on Wednesday. I wil pay back £222 a month on 24k. I am happy with this amount,but I was wondering what would happen if I needed to buy essential living items that break and need replacing like fridge etc? Will I have to work the overtime and pay the 50% as agreed or can I produce receipts on my review in April 2011 to show the extra income was used for essentials? This is the only bit that I am unsure of and my company has not told me.

I also wondered if any tax overpayment from last year in the region of £500 will have to be declared if I put into another bank account to clear that the company are not checking. Is it better to be giving all to the IVA?

trudij

With mine, the £500 would have been classed as a windfall, but my IVA people only want half of anything I earn (£500 or over) so Id have to give them £250. Hiding it in a seperate bank account, tempting though it is to do that - I think you will find is counted and might well mean that you fail your IVA if you get caught. Wether or not you are willing to take that risk is your decision !!

as for the other thing with the reciepts - whenever I have a car bill (and there have been many!) or anything like that, I send it to them with my wage slips, and they log it against my details. Ive never noticed it bring down my overtime payments though - its the one area that Ive found my lot vague about when Ive rung !!

Charco_2

Hiding money sounds like fraud to me but as Trudij says, the risk is up to you! (We're not here to judge you or be your mother).

The general agreement is that you pay in HALF of your overtime (so theres still some benefit for you - otherwise you wouldn't do overtime!) I suppose you would be expected to sort out extra expenses like fridges etc from your share of the overtime! (which can be difficult if you don't get overtime! What do you do for a fridge then?)

doelani

I agree with charco
Your agreement will probally say 50% of overtime to IVA so reallyt he other 50% you should be using to save for " emergencies " like things breaking down.

Each IVA companie's are different , I have read of some where somehting liek a car needed repairs and they will let people miss a month and add it to the end,

My advise is to save what you can from any housekeeping money or you 50% of overtime. This is yours money to do as you want with.

As for the tax back, probally classed as windfall, you need to tell your IP and they may take 50% of it, do not hide things, not worth the worry then when review comes along they may ask for bank statements and see the extra and question it.

Just one last thing, IF you do any overtime during your IVA nad it has the 50% clause keep this money aside. We used to keep track and send this to IVA company every few months. I have read of others who waited until review and IP then asked for £XXXX and they did not have it. Our IP never once asked us for extra as we had always sent in correct amounts, could not have been doing with getting a bill and no money to pay it

althas

Definately do not try and hide it, it woul dnot take much for your IP or a creditor to find it. Better to be upfront about it all (in my opinion)

Have a look at the clause in your agreement covering overtime etc. In mine, I am allowed to earn upto 10% of my salary without having to pay anything extra, after that it is split 50/50. So if my salary was £100, I could earn £110 and keep it all. If I earned £120, then I would pay 50/50 on the £10 above £110 (i.e £5) and not a straight 50% (i.e £10). So I would definately check that one. Personally, I would pay anything I owed that month, else you could be left at the review stage with a chunky bill to pay

As to the tax return, as others have said, ask your IP. It could be a windfall, or they may class it as income/bonus/overtime as it is pay related