Ok, as mentioned before I am an advocate of sneaky savings accounts as there is nothing wrong with this and you hold all the cards and not much can go wrong with them (even if you are diverting food budget funds into it via Sainsburys saveback or similar), you have budgeted for it, the IP has signed it off and its above board (ever so slightly, but in the eyes of a court you are smart, but its not breaking the rules).
So wages getting paid in this is current account territory.
So you head on to your preferred bank (being careful not to darken the doors of the places you are paying off) and open an account, and your new job is paying into it all, good so far, apt on the back, extra cash and the IP is none the wiser, you are careful to not transfer anything from your regular accounts as they are marked and with the new methods they are pushing for where a computer reads the accounts once a year you may get spotted.
However, it gets to review time and the IP asks, "Umm, can you tell me about your bank account with XYZ, as I have no record of it".. Blind panic sets in, how, when you check your statements on your marked accounts, all clean. It can't be tax records are they are a crown thing and off limits to the IP unless they get court orders etc and you would know about that, so how has it suddenly been found..
Plain and simple, they will have run a credit check to see that you are you when you set it up, the fact that it comes back with "Seriously, don't even lend these folks a pen, let alone an overdraft" is irrelevant as they are not interested in those results, they want to know that you have told them who you are and you are not money laundering etc.
But credit checks are saved and searchable, so the IP has found it, and you are thus busted, they can (and probably will) ask for bank statements (all of them), then once they see wages, they will ask for wage slips as well, and if don't comply they will fail you under the non compliance parts from the IVA rules and push for fraud charges etc, its a very long shot you will end up in the big house, but when it comes to a legal fight you will most likely lose as you have been dishonest. With a failed IVA you will then be fair game for your creditors who will tack on interest charges etc
So them's the risks.. is it really worth it.. (Stick to saveback and getting used to spaghetti (the cheap stuff), and knorr stock cubes to add flavour, easier, safer and with zero risk).
And what other folks said about tax credits and all that..
BUT, by all means get back to work, open up an account etc, but do it just after review time and you can keep more of the wages depending on your agreement, most let you keep all pay rises etc until next review.. and let your IP know (email so its traceable) of your change..
edited, spelling was all over the show.
