as i understand it i am allowed to earn overtime up to 10% of my monthly take home pay then anything above that is split 50/50 between myself and iva practitioner.
what is situation when i dont get same amount of overtime per month sometimes zero hours and other months 60 hours?
can my overtime be taken as an average per month over a year or must it be dealt with on a monthly basis?
In my opinion no but check with your own IP. Your monthly allowance is what is needed to run your home and anything over that is a bonus which is dealt with at the time. It has to be paid usually within 14 days so you cannot offset against the next month.
it seems to me then that even if there is loads of overtime available in a particular month i should turn it down and merely work 16 hrs which is a tenth of my working month.
its a pity that in the months i know there will be zero overtime i couldnt have compensated in previous months.
in the course of 12 months i know my total overtime will not exceed 10% of my take home salary as there is a limited availability.
It is very reasonable of creditors to allow you to retain the first tranche of overtime and then split the rest. This gives you an incentive to earn more while also offering a chance of an improved dividend. They are effectively writing off a large percentage of what they are owed and to be fair your attitude seems selfish.
If you only want to do sixteen hours rather than give half of the rest to your creditors that is your prerogative. However, it seems to me to be biting your nose off to spite your face as anything over that amount is split between you and creditors and could fund additional treats such as holidays, socialising, Christmas, birthdays etc which are not allowed for on a standard income and expenditure.
I take your point and realise it is hard to think that if the overtime was evenly spread it would make matters much easier.
Look on the bright side. If you do as much overtime as you can when it is available you will be too knackered to do anything when you get home. Then in the months that there is no overtime you can take your hard earned cash and go out for a beer, Chinese or whatever, which you could not do had you not done the overtime. You would be stuck in watching soaps [or even worse Liverpool on Channel 5]and I would wish that on no one!!
I am afraid that the calculation is carried out for individual months - but you do have to accept that this is rather generous on the part of creditors. I have clients who have been in their IVAs for longer, before this provision was introduced, and they have to pay over the full 50% with no 10% threshold.
