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Posted: Mon Sep 19, 2011 6:04 pm
by thomowolf1971
Hi there everyone,
This is my 2nd post since i started my IVA. The last post regarding personal injury claim. This new question relates to a Xmas bonus that i may receive. Although not guaranteed, this bonus is pretty much every year. It could be anything upwards to £1000. We have had an exellent year at the company i work for, therefore it will more than likely be closer to £1000 mark (If we do get one). Any advice or feedback would be very much appreciated!!. Thanks for reading my post!!.
Posted: Mon Sep 19, 2011 6:07 pm
by Shining
Hi, would this be classed as a windfall and payable to the IVA? I'm not sure, have you checked your proposal?
Someone who does know will be along very soon. x
Posted: Mon Sep 19, 2011 6:09 pm
by Foggy
Hi Thomowolf. Lovely to get a bonus
. As it isn't a guaranteed payment it will fall into the 10/50/50 arrangement (depending upon your own proposal). For most modern proposals this means you get to keep the entirety of the amount equivalent to 10% of your usual monthly salary, then 50 % of the balance, the remainimng 50% of the balance being paid into your IVA.
Some, however ( like me) were stuck with a staight 50 / 50 split.
Posted: Mon Sep 19, 2011 6:14 pm
by kallis3
Not sure how they deal with an annual bonus, it may well be 10% plus 50/50 but it depends on your individual agreement. If you do get a bonus then you need to let your IP know and they will advise as to what you have to do with it.
Nice to see you back.
Posted: Mon Sep 19, 2011 6:21 pm
by Shining
Posted: Mon Sep 19, 2011 6:57 pm
by thomowolf1971
Hi Guys,
Thanks for the prompt replies. Hi Kallis, glad to see you're still offering advice. I think i will frequent this foram a few more times over the next five or so years!!.
My agreement says 10% + 50/50 for overtime, but i'm not sure about xmas bonuses. Like i said its not guaranteed. Through the recession we didn't receive one for two years. But we had one last year, just before i set up my IVA. If i get to keep half i would be more than happy.
Posted: Mon Sep 19, 2011 7:22 pm
by kallis3
I'm not sure about an annual bonus - your IP will help with that.
Hope you are well.
Posted: Mon Sep 19, 2011 7:22 pm
by Foggy
Thomowolf, do you have a "definitions" page at the front of your proposal? Mine lumps income (work) related bonus payments in with overtime and they are treated (in our case) as 50 / 50. Windfalls are unearned income.
Posted: Mon Sep 19, 2011 9:26 pm
by thomowolf1971
It's supposed to be a profit related bonus. So I don't know what category that will fall into. But basically we get it in with our wages in December and were taxed on it. So I guess it will come under work related bonus.
Posted: Mon Sep 19, 2011 9:29 pm
by Foggy
I agree Thomowolf .. however, it's the view of your IP that counts
Here's hoping he / she sees it our way !
Posted: Mon Sep 19, 2011 9:34 pm
by thomowolf1971
I'm not sure about my proposal. I'll have to have a look in the morning. I've got a horrible might shift ahead!!.
Posted: Mon Sep 19, 2011 9:38 pm
by kazzafunk
Poor you - couldn't do night shift!
Hope your bonus is treated as a normal bonus and you get to keep some!!
Posted: Mon Sep 19, 2011 9:40 pm
by kallis3
I used to hate nights!!!!!!
I think it might be counted as the 10% 50/50 against your normal pay if that is what your proposal says and I also think that is against your monthly pay, not your annual pay.
Posted: Mon Sep 19, 2011 10:34 pm
by MelanieGiles
Your Xmas bonus will be treated under the 10%/50% ruling so you will be able to retain a sum equivalent to 10% of your usual basic salary, plus 50% of the difference.
Posted: Tue Sep 20, 2011 6:29 pm
by thomowolf1971
Thanks Melanie. I will be in touch with my IP as soon as i know if i am getting a bonus and how much, But she will see this from my wage slip anyway. Thanks to the other guys for their input. Muchly appreciated.