Two months ago I informed my IP that after deductions I was awarded a increase in salary. I was informed because of the 10 % rule which I understand that the increase fell within this that I dont need to pay anything, I confirmed this twice with them to be sure.
I am now due my variation meeting and was thinking, while I agree that I should pay back as much as possible to my creditors when possible what's the reason to allow me to keep the increase if two months later if in my variation report nothing has changed that this gets taken away from me ?
Surely its most probably much easier to just give all extra monies at the time you receive them?
I am also at the end of July getting a one of bonus which I will treat as I did and within the 10 % rule.
I wondered if anyone had any views on this?
I do want to fulfil my responsibilities but it doesn't seem right to confuse clients this way.
I presume by the variation meeting you mean your annual review?
My IP firm doesn't want to know about payrises until the review. You will need to submit a new I&E at this time and things may well have gone up so you could end up keeping it all. I have done so each time.
Your bonus will be subject to the 10% 50/50 rule.
Payrises aren't treated the same.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I am in the middle of filling out my new I&E, apart from the obvious increases such as travel and rent how or what else do you look at to highlight any increase? For example what about VAT i am aware that could go up soon
The 10% ruling doesn't cover payrises only additional funds you may receive such as overtime, commissions or bonuses. If your IP chooses to interpret this in some other way then let them discuss that with their regulators if necessary, but if I were you I would get their decision in writing so as you do not suffer from some change in mind later on in the process.
Payrises should be taken into account when the annual review is being finalised, and your ongoing payments should then be increased by 50% of the resultant surplus - unless of course your IVA proposal specifically provides for something different.
Hi - I to have received a pay rise at work and was told by the IP that I dont need to do anything until my annual review, I have called 3 times just to check as I dont want to be stung with paying any money back as a rusult.
You should be ok. I doubt you will have any nasty surprises.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
