Bonus and OR

Sunshine2114

Just a quick one .. Me n my husband went BR on 10/04 we had our call from OR n now waiting for outcome of a IPA if any as we have £25 surplus at present until our old house is fully repossessed then we will have the council tax at £120 going spare so as yet we have not heard if we are getting an income payment or not pretty much in limbo... So my question is my husband has had a pay rise confirmed from 01/08 by £2k which I know we will inform them of as soon as we get the official notification but my question is he has a £3,500 bonus so say £2500 after tax man do we have to give the full 100% of that to the OR or is it like when we were IN Our IVA we give 50% ? Just so we can look to plan our financial state as if we can keep some that would give us great head start in xmas n our 2 kids birthdays that we are frantically worried about where we going to get cash from to do that ,,, as its not their fault we failed :-(

sniggings

if in the IPA period then sorry but yes, you can argue/ask for some of it for say a large expense, such as the car broke or the washing machine, at the time you get the money, but it's unlikely you will be allowed to keep it.

Sunshine2114

Thought as much :-( it's always been our help for xmas n birthdays for the last two years whilst in our IVA :-( so god knows now

Wayforward

Similar situation for me with bonus , I get a basic salary , but get performance bonus monthly , can range from an extra 20% to 60% of my wage each month. I'm hardly going to want to work my backside off for extra pay so I can give it all to the OR , shame really as if they just took a percentage of bonus earnings you would want to earn more meaning the OR sees more money from you.

sniggings

Wayforward wrote: »

Similar situation for me with bonus , I get a basic salary , but get performance bonus monthly , can range from an extra 20% to 60% of my wage each month. I'm hardly going to want to work my backside off for extra pay so I can give it all to the OR , shame really as if they just took a percentage of bonus earnings you would want to earn more meaning the OR sees more money from you.

slightly different if your bonus is part of your monthly wage, in that case an average would be worked out over a few months and that amount would be classed as wages, even then it would still be all taken IF you were already paying into an IPA but if you were not because your earning were to low, then some of the "bonus" could be kept as wages, with the rest being handed over.

Thats why I suggested when a bonus comes in such as the OP will be getting, it is worth mentioning any extra expenses you may have, if they are reasonable then the OR needs to either redo your SOA or may allow you to use part of the bonus for those expenses.

As with all rules there are always the exception. If you don't ask you don't get.

Wayforward

I imagined it would be like that with bonus being averaged out if part of monthly wage. My basic just covers my living expenses , so looks like any bonus I do earn will be taken then , just seems like so much work that they may set an average payment due from me , then i may not actually earn anything like that for a while , i guess i will be constantly updated the OR each month will I to let them know i dont have the extra bonus that month to cover what i have to pay them back?

milothewestie

Xxxxxxxxxxxx

sniggings

Yes, you will just have to keep your OR informed of any changes, if they can't average your bonuses out over a few months.