www.iva.co.uk

Bit of an unusual situation.

My wife has been working extra hours over the last couple of years. She is a nurse and she did the work on the understanding that she would be able to take the equivalent amount of time off at a later date. Anyway - she has racked up over 100 hours of this 'time owed' and her boss has told her that she is now going to be paid for it. Its likely to be around £1500 after tax. My wife and I are in a joint (intertwined or whatever the term is) IVA. I know we wont be able to keep all of it - will we be able to keep some of it though or are we looking at handing the lot over to our IP?

I will contact our IP on Monday but wondered if anyone could give me their thoughts in the meantime.

It should be dealt with under the 10% 50/50 rule or 50/50, depending on which clause you have for extra income, so you will get to keep at least half of it.

Presuming you have the 10% 50/50 rule then you would see 10% of usual income + £750.

It would probably be a good idea if a letter was accompanied with the money from her employer stating it was overtime for whatever period which had now only been paid to avoid any questioning of not declaring at the time of doing.

Thanks guys
I do have the 10 50/50 rule for extra income. I will contact our IP on Monday and if they need extra info it shouldn't be a problem. Its an absolute blessing being with a small 'boutique' firm. It means on Monday when I ring a human being will answer the phone and I will get to have a conversation with my IVA administrator directly.

You'll probably find it will be tuesday as Monday is a public holiday!

Happy New Year!

Just thinking on this further -- and you might need to convince the IP .......
If, as Luluj suggests, you get a breakdown of when these amounts were earned and would normally have been paid, the IP might allow the 10% disregard for each month it would have been paid in, rather than the one disregard for the month it will be paid.