I have previously posted on here about how my IP will treat an increase in income due to my wife receiving an allowance as a local Councillor.
Having now worked out what she will actually be getting, and how much our actual expenditure will increase as a result of this, we have worked out that there will be a surplus of about £360 per month.
I have in my IVA agreement the clause that allows me to keep all of any increase in income up to 10% (which in my case is about £260 extra per month), and then I can keep 50% of anything above this. I work this out as about £50 extra per month that I have to pay into the IVA.
I also expect to get a small pay rise at some point in the next few months - I expect that I will have to pay over 50% of this too as I will already have used up the 10% which I can fully keep.
I don't have a problem with any of the above, but I do have some questions:
1. I assume that an increase in my wife's income is treated in the same way as an increase in my income, and hence the above rules apply?
2. If so, should the 10% threshold after which I pay 50% be based on the total household income, and not just on my income as it is at the moment? Obviously 10% of the household income would be higher as it would also include child benefit, child tax credits etc?
3. What will happen at my annual review – do we continue to keep this extra, or will they just base my payment on the new SOA? If it is the latter, then I can see we will lose the majority of this extra income at that stage, thus losing any benefit of my wife 'working'!
Hi and welcome
The above will depend on your IPs view and the wording of your chairmans report. If your wife is not in an IVA then her extra income, in my opinion, should not factor into your IVA payments at all.
Have you chatted your circumstances through with your IP ?
Changes in payments should kick in at the annual review but again it will depend on how your IP views this and the wording of your initial chairmans report
Regards
I believe the 10% 50/50 rule applies to each of you if you have an interlocking IVA, I specifically asked about this myself when we were getting our proposal together, it isn't based on your total household income but your individual incomes if that makes sense
