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Sliding scale of IPA's

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Really sorry if this is a daft question but are the IPA percentages on a sliding scale
e.g.

If I had a surplus of £475 66% of this is £313.54, but if I had a surplus of £500 the payment could be £350 - this shows I have and additional £25 surplus but pay £36.50 more ?

I know this is a theroretical question and I'm only talking small amounts, but wondered if it was done like tax 22% on the first £x and then 40% on the rest?

Thanks!
:question:

Comments

  • debtinfo
    debtinfo Posts: 7,012 Forumite
    No you are right the first time it is a percentage of the whole amount and this does throw up slight discrepencies around the borders of the bands
    Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
    Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.
  • dojoman
    dojoman Posts: 12,027 Forumite
    The percentage the OR can take for an IPA depends upon the excess:

    Between £100 and £249 = 50%
    Between £250 and £349 = 60%
    Between £350 and £499 = 66%
    £500 or more = 70%

    70% is the max the OR can take so even if you have £2000 DI the OR can only take 70%.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • Thanks - just a bit of detail I wanted to check out of curiosity!
  • Sorry to jump in, but ive just had an ipa set up for £62 a month, gonna be gettin a pay rise at end of month which will give me an extra £300 a month, am I right in thinkin th OR can only take half of this on top of what im already payin. ?

    Thanks
  • dojoman
    dojoman Posts: 12,027 Forumite
    B4ndit74 wrote: »
    Sorry to jump in, but ive just had an ipa set up for £62 a month, gonna be gettin a pay rise at end of month which will give me an extra £300 a month, am I right in thinkin th OR can only take half of this on top of what im already payin. ?

    Thanks

    So are you saying you will have £300 extra surplus cash?
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • Yeah will have 300 surplus.
  • dojoman
    dojoman Posts: 12,027 Forumite
    B4ndit74 wrote: »
    Yeah will have 300 surplus.

    If you have a look at the table in post no. 3 you will be able to work out what you will be paying!
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • cheers, just wanted to make sure they werent gonna take it all.

    Thanks
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