www.iva.co.uk

Hi all

I might be being a bit thick but i wonder if someone could put my mine at rest. Last week i got promotion so my income has gone up but in turn my tax credits have gone down. Am i right in thinking that i pay 50% of anything i earn over the TOTAL household income figure stated in my proposal.

I think what im trying to say is if they cancel each other then i wouldnt pay 50% over.
Am i right?

Sarah

Hi Sarah, I'm sure you're not being thick, we all have questions and that's what the forum is all about.

Are you due for a review of your income and expenditure very soon? I would certainly advise your IP of your promotion and take their specific advise in respect of any uplift payments.

A revised I&E will show up any additional payment required.

Hi
Your payments may increase by your extra income less your reduction in tax credits, the 50/50 usually relates to overtime and bonus but not pay increases
Regards

my 1st year review is in march.

the thing is when i started my iva i had 2 jobs , then lost one of them and lost hours on the other now i have promotion at work but with the increase in wages my tax credits have gone down. It actually works out that my household income is not far off what it orginally states in the proposal

No question is thick.
Present the full picture to your IP (with any evidence of the changes you have) and there should be no issues

Your payments should only increase by 50% of the net increase in disposable income - after expenditure increases. So in answer your actual question - the increase and decrease do set off against each other.