Help please with ipa !

reallystressed

My hubby was declared bankrupt in July .at the interview with the or she worked out our income and expenditure and average wage from payslips as he has a basic wage and overtime , she worked out we are on a deficit of £400 pounds (no surprise as we have been skint trying to pay debts etc )He was put on a nil tax code ipa and told he could also earn a certain amount before he had to pay into bankruptcy (excluding the nil tax code ) which came into effect from end of November . In october he was given a payrise taking effect from November ..also this last month he has had a very big overtime bonus as he was trying to make enough money that he was allowed to earn and then was prepared to pay the extra to official receiver .he has informed the company collecting the nil tax code payment of the overtime and emailed his payslip to them but they have still told us to only pay the same amount agreed on his nil tax code even though the tax amount would have been much higher because of the overtime bonus ..he has spoke to the official receiver who said they will send out a new income and expenditure form ..but thry said he is not on a surplus ipa only nil tax code ipa so they will work out his income and then see if he has to pay a bigger ipa . They have not asked for the extra money and I am terrified what's going to happen it's just sitting in my bank account (because hubby wages are paid in there) .how can we work out his average wages as this is the first month of payrise money and the overtime this month is an extraordinary amount and he is not likely to earn that amount ever again .last months wage was below his allowed limit to earn before he has to pay . But this month was almost 2 grand more that's gross as the nil tax code is in effect ,last month he still paid tax ..if they work out that he has to pay a big amount into ipa from wages from now on what happens if his earnings drop to an average of what they have been as even with the pay rise I don't think he will often earn more than his allowable limit because as I said it was unusually high this month due to a very busy month and nil tax code .... I'm so scared I wish they would just take this money now cos I don't want us to get hit with a demand !

TheGardener

Please don't stress about this - as long as your hubby pays his usual NT/IPA and keeps up to date then you have done nothing wrong and will not get into any trouble. The OR is only interested in a significant permanent change - up or down. If this is just a one off - averaged out over the rest of the year then it probably isn't nearly as huge a difference as you think and may not even take him up to the limit they gave you (if you are in deficit anyway)

The OR's are pretty busy and unless the change is going to make a significant different to the amount available to the creditors - they may not even bother to go though the hassle of changing the IPA for a 'one off' payment of the size you are talking about - but all OR's are different.

The important thing is you have told the OR about the extra money and explained that this is a highly unusual amount and so you have done everything the law asks you to. The ball is in the OR's court.

reallystressed

Oh thank you so much for putting my mind at rest ..what you have said makes sense to me now ..in sure when he gets his next payslip in a couple if weeks it will settle down to a more normal amount as without overtime his basic pay is still below his allowed limit ,so like you say it probably won't work out to that much over the course of a year ..I just get so scared with all the bankruptcy stuff as leading up to the bankruptcy I was reading all I could find about it and i do not want him being hit with a restriction as he is almost halfway through the 12 months of BR ...like you say we have informed official receiver and the company who take the nil tax payment so we have covered ourselves ...phew ! Thanks again x