Sliding scale of IPA's

Questionner

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:

debtinfo

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

dojoman

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%.

Questionner

Thanks - just a bit of detail I wanted to check out of curiosity!

B4ndit74

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

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?

B4ndit74

Yeah will have 300 surplus.

dojoman

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!

B4ndit74

cheers, just wanted to make sure they werent gonna take it all.

Thanks