I know that 50% of any overtime is paid onto the IVA, but how do you pay it? Do you send the IP a cheque when you have done overtime or is it all calculated on your P60 at your review?[?]
Think it depends on your IP. I pay be cheque weekly, as I am weekly paid. I also had the option of either amending the monthly standing order accordingly, bank transfer or over the counter.
It would depend on the exact wording of your proposal. I have had some that send in their wage slips quarterly, and I advise them how much is due to the IVA. If overtime is regular, sometimes I ask it be paid monthly so as to avoid a large amount be due all at once. This helps budgeting for clients.
If overtime is rare, then you might be able to pay it annually just before your annual report to creditors is due.
Best bet would be to have a quick read of your proposal to see what it says, then discuss the best method with your IP.
Kind regards,
RJC Financial Management
Accountants and Insolvency Practitioners with over 18 years experience.
Personally, I would recommend that any overtime or bonuses you need to pay across be done immediately.
That way you're not tempted to spend the money.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
We encourage our clients to pay the money across as soon as it is received, and most do this to ensure there are no unexpected suprises at the end of the year.
If your proposal is IVA protocol compliant, then you will have to pay the money over within 14 days of receipt.
