www.iva.co.uk

Hi
Its clear that when one income is over 10% higher than expected you can keep the 1st 10% then share the rest 50 / 50 however is this taken as a joint income when you have a joint IVA ? My partners income is down by approx 3% however mine is up by 12%, overall 9%up. Will I be penalised for this. Cheers

Hi and welcome,

Your IVA will be interlocked but I'm not sure what happens with a payrise.

You need to check with your IP as to how this affects you.

Hi,

Although our IVA's are interlocked we each have earnings thresholds over which the 50/50 clause applies.
There is no averaging between the two.

Regards.

We each have our own thresholds and send in any uplift payment independantly x

Agree with what the others have said, although if you partners income has reduced on a permanent basis you should discuss the way forward with your IP.

The reduced income does have to be taken into account before more is taken from one party - but you do have the 10% allowance to counter the 3% shortfall if you regularly earn more money.

Yes its the total joint income that is always taken into account, so its the net joint increase always.

Thanks for all the responses
The extra payment is a 3 month bonus. can this be spread over a 3 month period ? i.e My monthly salary plus 10% x 3 deducted from the bonus before 50% is sent

If it's paid in one,lump sum then I believe the 10% plus 50/50 will come off the whole amount. I don't think.you will be able to split it.

No - you cannot spread the payment over three months unfortunately. Under the terms of the IVA protocol, each month is viewed individually, and funds have to be paid over within 14 days of receipt.

In that case, should I add my wife's and my allowance together, add 10% then deduct that from the actual joint salary we received in the relevant month.with the balance split 50/50 ?

As far as I am aware it will all have to come from your bonus as this will be classed as separate to your normal income.

Maybe I am being a bit thick. To clarify things, say for example my net salary was £3000 per month and my wife,s was £400 per month, and my wife earns another £100 in one month on overtime, is the 10% rule on joint income of £3400 or on the £400. The IVA is a joint IVA.
If not then, surely it would be better to have separate IVa's or one IVA and one DMP

You cannot combine the allowances, you can only offset your own personal allowance against additional earnings - however if your wife is suffering a shortfall in income over the same period then I would personally allow that to be reduced.

In your example, your wife's £100 would firstly absorb her 10% allowance - ie £40 and the balance of £60 would be split equally between her and the IVA. So £30 would need to be paid into the IVA and she would retain £70.

Hope this helps.

This must differ between IP's? We received written confirmation from our IP that from November 2012 our income allowances would be combined and treated as one joint allowance for both incomes. Makes it far easier to decide if we owe any over payments.