Question about IPAs?!

princessdon

Suzanne83 wrote: »

No. my husband lost his job recently but because he earned a good wage in the last tax year, we don't qualify for this year! The only benefit that we will hopefully get is housing benefit.

Yes and no. You get a null award then you ring up with adjusted figures for this year, based on your earnings you will get some tax credits.

Suzanne83

princessdon wrote: »

Yes and no. You get a null award then you ring up with adjusted figures for this year, based on your earnings you will get some tax credits.

Hiya, I rang up the tax credit line and spoke to someone, gave them the numbers and they said we werent eligible to tax credits. My husband earned about 5000 since April so I dont know if that has affected it, but like I say is now unemployed.

manzanilla

Go to your local CAB and they will help you sort out tax credits. This is vital - forget about the IPA, you aren't going to have one on anythinglike that SoA!

But you still need extra income because you can't live on that little. Use turn2us.org.uk to see what you should be getting and then talk to your local CAB if HMRC are still being difficult.

Suzanne83

You're right! I don't know how we will live on this little! My wage of £1600 is an average wage. My worry is my pay has the potential to go up with working more unsocial hours-nights, weekends etc. but we need this increase for more realistic costs but I'm assuming anything extra than stated in the SOA we give to the OR will go to an IPA. Am I right thinking this?? Also, I pay into a pension (as well as employer) which comes straight out of my pay hence why it isn't included on my above SOA. Can the OR stop my contributions? If so that's approx £200 a month towards an IPA! Oh my god there's too much to think about. I can't wait to have it all over with.

22bear

Suzanne83 wrote: »

You're right! I don't know how we will live on this little! My wage of £1600 is an average wage. My worry is my pay has the potential to go up with working more unsocial hours-nights, weekends etc. but we need this increase for more realistic costs but I'm assuming anything extra than stated in the SOA we give to the OR will go to an IPA. Am I right thinking this?? Also, I pay into a pension (as well as employer) which comes straight out of my pay hence why it isn't included on my above SOA. Can the OR stop my contributions? If so that's approx £200 a month towards an IPA! Oh my god there's too much to think about. I can't wait to have it all over with.

Hiya! My NHS pension contributions of £260 per month was acceptable to the OR, so no worries there. The Insolvency website has a section about bankruptcy, IPAs and pensions so have a look there, basically it says that if the BK is paying into an "approved" work pension scheme at a standard rate (i.e. not making extra or enhanced payments) then that will be fine and you'll be allowed to continue to do so

With regards to extra earnings, obviously anything significant amount extra you got coming in then you have to inform the OR about it within 21 days (by law), but the OR will only be interested in it if the amount is substantial or is a regular increase in income for you. For example, the odd extra £200-300 every few months that you might need for, say, buying a new washing machine cos your old one's packed in, or for any other reasonable domestic expense that you might have, your OR is likely to take a pragmatic view of that and allow you to have it for these purposes, but it's always better to let them know and provide some evidence that you need the extra money for such an expense, just to be on the safe side...my recent experience of dealing with the OR is that they are very reasonable indeed!

Suzanne83

Thanks 22bear, that's really put my mind at ease regarding the pension part. Thank you.

sort_me_own_yard_out

I hope you get your tax credits sorted it will help x

Suzanne83

sort_me_own_yard_out wrote: »

I hope you get your tax credits sorted it will help x

Thank you, fingers crossed!