IPA/SOA query

Maizy

We are a third of the way into our BR year and do not have an IPA.

When we went BR our income was a lot lower than expected (mainly due to tax credits) but it doesnt matter what the reason is. Our expenses were very low and things were missed off so as not to take us into a minus. Kind of thought we can live like this for a year and whilst its hard, we probably could. We have cut back in every way and havent bought a single item of clothing in 4 months. We are struggling not with living but with making the expenses go around as we had car/vets bills before we had chance to put anything by. Not crying sympathy, it is just the way it is.

We have the chance of an increase in income which could well be the same income for OH but potentially could be an extra £200 per month depends what gets agreed as basic salary and what bonus structure it is.

My question is, we will of course have to submit a new SOA and we could eat the extra £200 no problems at all due to things we missed off and other expenses being extremely low.

How would the OR view an increase on an SOA of £200, although its evident from the previous one we had to miss things off and nothing was even mentioned about the figures during the interview.

Also, if he does get an IPA for the extra amount, what happens after my discharge if I earn any extra a month, does this get taken automatically in his IPA due to increased household income. Still find it so confusing.

Thanks, its just a question for when discharge occurs and there seems to be a few early ones arising on the forum lately.

sundays

From my experience, the OR will not give a IPA if there is no surplus income, equally they dont appear to concentrate on the SOA if again there is surplus, i think you would need to say what the extras would be that would need to go on and see if they were allowable and reaslistic.
I understand that whilst a ipa stands you are expected to advise of any coc inc yours , although i would prob imagine if you didnt they prob wouldnt find out.

Maizy

Hi, I think the allowances/increases would be deemed realistic its just whether or not an IPA would be set depending on our OR, you never know.

So basically it would seem if OH had an IPA soon with his new job and I remained without one, as soon as I am discharged and when Im ready to work more hours, he needs to let his OR know about my change of income and I guess it would be taken through his IPA. Or maybe if its my extra income and I wish to spend it on other things, (otherwise not allowed in BR) that may be acceptable once I am discharged, I have no idea although I'm sure someone here will know how it all works.

Thanks for the reply. x

kepar

Maizy wrote: »

Hi, I think the allowances/increases would be deemed realistic its just whether or not an IPA would be set depending on our OR, you never know.

So basically it would seem if OH had an IPA soon with his new job and I remained without one, as soon as I am discharged and when Im ready to work more hours, he needs to let his OR know about my change of income and I guess it would be taken through his IPA. Or maybe if its my extra income and I wish to spend it on other things, (otherwise not allowed in BR) that may be acceptable once I am discharged, I have no idea although I'm sure someone here will know how it all works.

Thanks for the reply. x

My wife had an IPA and all through the 3 years it was understanding that if I got any employment that it would have to reported to the OR.

What you have got to remember though is that if you work you will have your own expenses for that. Also as IPA's are individual your percentage of household income will change along with your OH's. Therefore you will only indirectly lose a portion of your income because of this. You will still be better off and after 3 years you will get a tax free pay rise.

I looked for work but because of my illness failed to find anything to suit, but if I could have worked I would have.

Maizy

Thanks Kepar

It wouldn't cost any extra for me to work more hours as I work locally for a really good company who have been very understanding of my situation.

Childcare is very limited, in fact zero and I would only increase my hours if I saw some benefits from doing so, it doesn't make sense to put that pressure on myself to hand it over in my OH IPA. I would only work around school hours. Words cannot express the strain we have been under with working hours/lack of childcare pre BR and I do not wish to go there again without seeing something for it. I am only human after all.

I just cannot see what expenses I would be allowed to keep from the increase that wasn't mentioned on the updated SOA. I then fear the whole increase would go to his IPA. I love my job and I will re-think things when circumstances do change. I may seem premature asking these types of questions but already 4 months in and things have started to change a lot.

Thanks for the input, I do hope you are doing OK.

kepar

Giving you a guide Maizy, I do not know your circumstances so all figures are guessed.

His income £2800 your income £200

Outgoings £2800


2800/3000 approx 93%

93% X 2800 = 2610 approx

2800 -2610 giving an IPA of £190

Giving household income of 2610 + 200 =£2810

New

His income £2800 your income £1200

Outgoings £2800

2800/4000 approx 70%

70% X 2800 = 1960

2800 - 1960 giving an IPA of £840

Giving household income of 1960 + 1200 =£3160

So you will be paying a large proportion, but you will be a lot better off. After the three year point you will have a massive tax free pay rise(that is how it will seem , it did for us)

Also you may have secured a good position in that time and be on your way to better things.

Good luck if you decide to go for it.

If you are not sure of my example and want to give the correct figures to work it out for you, PM me any time.

Maizy

Thanks Kepar

I do see what you are saying and will have a good think about things. Really appreicate this.