IPA and Bonus

tonymcp86

Hi all
Currently in an IPA until August 2022, currently paying £397 per month.
I've received a Bonus of £4250 and declared by sending the payslip to the OR.
My usual OR is on leave currently, and their office is swamped because of the changes from one payment collector to another thats had issues.
I've been contacted today by someone in the OR office saying they want to claim 60% of the post tax amount left - they've taken 50% off the original amount for 40% tax and 10% NI. And left me with an amount of £1275 to pay them in due course.
I've seen the attached https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part7/Annex B.htm from the technical manual that states given my length of time they should claim 50% - can i challenge the amount they've requested or just accept it?

Minkym00

The link you’ve posted relates to the OR claiming a lump sum of a pension drawdown, which this isn’t. 

bradders1983

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

tonymcp86

Minkym00 said:

The link you’ve posted relates to the OR claiming a lump sum of a pension drawdown, which this isn’t. 

Sorry, the manual links to that page from the previous ref Bonus payments and treat them calculations as if a lump sum pension payment etc

tonymcp86

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

Minkym00

tonymcp86 said:

Minkym00 said:

The link you’ve posted relates to the OR claiming a lump sum of a pension drawdown, which this isn’t. 

Sorry, the manual links to that page from the previous ref Bonus payments and treat them calculations as if a lump sum pension payment etc

The guidance published online is several iterations old now, and the new current guidance is not publicly available. In actual fact, they could claim all of it.

flipflopflo

tonymcp86 said:

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

No there isn't any way of avoiding as the OR talks to HMRC and they know how much money you have been paid.

bradders1983

tonymcp86 said:

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

You think they have time to go through the finances of bog standard people who went bankrupt over a year ago?
I had three cost of living increases during mine and I didnt say a word.

Minkym00

bradders1983 said:

tonymcp86 said:

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

You think they have time to go through the finances of bog standard people who went bankrupt over a year ago?
I had three cost of living increases during mine and I didnt say a word.

1. Cost of living increases are hardly the same as a £4k bonus.
2. Some people are not prepared to commit a criminal offence. 
3. HMRC has RTI and passes information to various government departments.   

tonymcp86

bradders1983 said:

tonymcp86 said:

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

You think they have time to go through the finances of bog standard people who went bankrupt over a year ago?
I had three cost of living increases during mine and I didnt say a word.

Funny enough I’m starting a new job in January, with a sizeable pay increase.
what cost of living increases are acceptable?
i also have to add things like life insurance which I need to take out etc

bradders1983

tonymcp86 said:

bradders1983 said:

tonymcp86 said:

bradders1983 said:

Very honest by admitting you were paid it. Good deeds sometimes go punished. 

There’s no way to avoid declaring is there?

You think they have time to go through the finances of bog standard people who went bankrupt over a year ago?
I had three cost of living increases during mine and I didnt say a word.

Funny enough I’m starting a new job in January, with a sizeable pay increase.
what cost of living increases are acceptable?
i also have to add things like life insurance which I need to take out etc

Was a few years ago now but was only around 3% each year, add to that the tax free allowance kept going up as well, for the sake of that I wasnt going to bother saying anything tbh.