Additional Monies Guide

What are Additional Monies?

As part of the terms of your IVA if you start to earn more during the arrangement due to overtime, bonus or commission then a portion of it may need to be paid in.

We look at the amount that you have earned in six month blocks from the start date of the IVA (unless you get an annual bonus in which case we will complete the review once a year). We will ask you to send in your wage slips regularly so that we can calculate whether you need to pay anything extra into the IVA and help you to put a plan in place.

How does it affect me?

In most instances, you would be allowed to keep 10% on top of the amount of your usual income as stated on your most recent income and expenditure form. Anything over that amount would be split between you and the IVA 50/50. If you have had increased expenses, it may be possible to offset these against anything you owe, if you do have any increased or one off costs please save proof of these.

For example: If your usual wage is £1000 a month but you had done some overtime and earned £1100 then you wouldn’t need to pay anything into the IVA from that month.

If you had done a little more overtime though and earned £1200 you would need to pay £50 into the IVA. From the £200 overtime received, you keep the first 10% which in this example is the first £100 then the remaining £100 is split in half between you and the IVA.

In total you keep £150 of the £200 and pay £50 into the arrangement.

We understand that overtime or commission can change from month to month so rather than looking at the wages every month we do the review every 6 months to allow you to retain the 10% on top of your 6 months worth of wages before you need to pay anything extra in.

What should I do if I’m unsure?

We ask for your wage slips on a regular basis so that we can keep these calculations up to date for you. Your IVA will not be able to complete until you have sent in proof of your income and paid any additional monies owing.

If you would like us to go through an example based on your own income or have wage slips to send us and you are not sure how to send them, we are here to help.

Do not hesitate to give us a call on 0161 672 8981 or message us using Live Chat (just log into your online account or the Financial Wellness Group app, and click the blue chat icon).