Being made redundant while on BR and IPA.

psi2244

Hi, hope I can explain all this correctly.

I went BR at end of Aug 2013 and I am on an IPA till April 2014.

I work for Notts County Council for 2 separate departments, part time, 16 hrs and 12 hrs. Yesterday I had a double whammy of being told that my daytime job is at risk of redundancy in April 2014 and then later that day got told they are cutting my evening job wages by 30% in Oct 2014.

Here's the dilemma for me, I can probably take Voluntary redundancy for both posts but I'm not sure if it will get taken from me by either the OR or the IPA. This is because of the timings of both posts ending.

Will I get away with keeping any redundancy payments to me if they are after the IPA finishes in April 2014 and what about any payments that I get in Oct 2014 or will I get the April payment taken and keep the Oct payment. Also what if I don't mention anything at all to the OR etc will I be ok or have I got to mention that my job is at risk?

Im either gonna crap myself here or thank my lucky stars that its all happened at the correct time me thinks.

thanks in advance
psi

Action_Jackson

31.7.55 Redundancy payments to be claimed as a bankruptcy asset
(amended February 2012)
With regard to redundancy payments, it should be noted that any periodic payments in respect of redundancy represent compensation for the loss of a job (see Chapter 31.5, paragraph 31.5.32), and a redundancy payment whether received before or after the making of the bankruptcy order is an asset of the bankruptcy estate and should be realised accordingly, it should not be treated as income or be included in an IPA. See Chapter 31.5 paragraph 31.5.32. Where redundancy occurs after the making of the bankruptcy order, any redundancy payment may be claimed as an after-acquired asset.




..... If I'm reading it correctly, looks like until you are discharged the OR can claim redundancy payments, but not for an IPA.


One question, why such a short IPA?

tigerfeet2006

I would guess given the date it's a NT IPA, Action Jackson.

Action_Jackson

tigerfeet2006 wrote: »

I would guess given the date it's a NT IPA, Action Jackson.

Yes, fairly obvious it is - silly me

psi2244

Yes its an NT IPA, my income is so little and I have none spare each month I guess its the only way they could get anything out of me.

I'm still not really clear on that answer though, does that mean that any payment I receive in April will get taken from me unless I've not been discharged. I'm assuming I shall be discharged in approximately end of Aug 2014 in which case the second payment if I take VR for my second post wont come until Oct 2014 anyway so should be safe. Is this correct.

Also again I ask what if I don't tell the OR about any of this, how would they even find out if I don't tell them?

Action_Jackson

Yes, it looks like the April redundancy payment would be seized, and the October one will not. Redundancy payments are seen as an asset and not income.

Hiding things from the OR is not a good idea; they communicate with DWP, HMRC, Land Registry, banks etc. That's how people get found out and end up with a BRU/O.



Any chance your employer could just keep you on reduced hours until discharge?

battyboimatt

I thought IPA were for three years not use one

Action_Jackson

battyboimatt wrote: »

I thought IPA were for three years not use one

An NT tax code IPA can be put in place for a shorter term - it allows the OR to collect payments that would have been made direct to HMRC. There's an explanation here:

https://forums.moneysavingexpert.com/discussion/1064237