IPA query, delay in setting it up...

AdvicePlease

Although I went bankrupt at the beginning of May my IPA still isnt anywhere near being finalised, because I am in the process of changing jobs - the OR has asked for proof of income for a start, but I wont get a payslip for a full months pay in the new job until the end of July!

I'm really not sure what happens in the meantime? Do I keep all my income until the IPA is agreed and signed up, then make my 36 payments? Or will they apply the IPA retrospectively? I'm getting a bit worried that I should be putting money aside for the IPA, or giving the OR copies of my bank statements in the meantime or something like that - they havent asked me for anything, but I dont want to be caught out?

fermi

An IPA should only apply from the point you sign it onwards, for 3 years from then.

Usually any spare income in the meantime is yours.

tigerfeet2006

Any money you have between now and the official setting up of the IPA is yours to keep and do what you want with. The IPA doesn't start until the first payment is made. Just carry on what you are doing.

The only difference to that would if you had a nil tax code that would need to be put to one side until Moonbeever asked for it.

AdvicePlease

Yayyy that is good news then - thanks very much both :):) The OR has said no nil tax code because of my change of job, so all is OK there.

Phew, that is a relief, thank you

GoingUnder

I went BR in May 2011, my IPA was signed in Dec 2011. They can take time, especially if you dispute the OR's figure, which I did. Good luck

AdvicePlease

GoingUnder wrote: »

I went BR in May 2011, my IPA was signed in Dec 2011. They can take time, especially if you dispute the OR's figure, which I did. Good luck

That would be even more good news if it took that long (I am currently disputing the figures) as new job involves significant payrise which I had assumed I wouldnt benefit from at all! Thanks for the info

Dark_clouds_looming

On a slightly related note, does anyone know what happens if you are paying an IPA, have had an increase in income, have informed the OR (now three times) but not heard anything back for months?

I assume that the delay in sending out a new income/expenditure form is because they are so busy. The thing I don't know is whether I should be putting the extra income to one side (in case they claim it all back from the date of the salary increase) or whether I can use it (having a very tight time with unexpected car costs this month).

Any thoughts?

freddy911

As stated above any income you have until the IPA is agreed is yours to keep, they don't come after back payments as they will still collect 36 payments regardless how when its set up.

Dark_clouds_looming

Was that in reply to my post? If so, I just need to clarify that I was already midway through an agreed and signed IPA when I had the wage increase.

Does that make a difference?

tigerfeet2006

As has been said the money is yours. You have fulfilled your obligation in letting the OR know of your change in circumstances and have the emails to prove it. I would assume that the rise is not that significant and the OR has decided it is not worth the extra expense and paperwork to alter it.