www.iva.co.uk

Hi

With the Gov changes to our tax codes, how does this affect IVA's and I&E as my understanding was for the Gov to increase to a better tax code as the cost of living has gone up, but how does that affect people like ourselves in a IVa, will we be allowed to keep the increase or will we be expected to hand it over. Ours is about £50 extra pm.
Thanks
Sam

Hi Sam,

With that amount per month you should probably speak to your IP. It may be with the increased expenditure that you can keep it all.

Hi Jan

Thanks for that. I have been in contact with them recently, you may remember my post about hubby getting an unexpected bonus. Well he got £415.00 less tax. I immediatley told IP before even receving the money, which has gone in the bank today, and they wrote to me advising that within 14 days I would need to produce the April paylsip with the bonus, plus March'so they could work out the difference which would be 10%, 50/50, so at least we get to keep some of it. We would have to pay the money straight away over the phone. But then it got worse (well nice, but not), my tax code changed so I recevied an extra £22 in my salary. Hubby's wage slip has not arrvied so I cannot see the breakdown, but his tax code would of changed and also he has got an annual increase, which looks like about £30 take home. Nice sum in the bank account this month. But in the meantime two months ago our child tax credits reduced from £430pm to £230. We managed this by reducing our child-minding costs, but this month it has gone down to £197.00, I can't reduce anymore of the child-care costs. Our annual review is not due until July/Aug time. There's no point in ringing my IP until the wage slip arrives to show the breakdown, but I really would like to know if this is going to increase our payments.
Sam

I would think that if your other income has dropped so dramatically that you would be able to keep this. I'd ask if you could do a new I&E now as things have changed so much.

Thanks Jan

This is one that's puzzling me too - I've not yet been paid since it came in, to see any benefit, but if I've worked it out correctly, I think I will be about £25 better off. But of course I began my IVA proceedings at the start of March, so the I & E was worked out according to then! I guess the only thing I can do is wait until next week and take it from there.

Hi Skeef143
It is nice news to have the increase, but to be fair I think that we should be allowed to keep it with all increases that have been happening. We get allocated £120pm for two cars for fuel. Already on payday, today, straight away I've put in £62 and hubby £74, and the cars arn't anything posh!!!. That leaves up £14 until next pay day. It just doen'nt happen, I end up using the shopping money!!!.
Food/shopping we get allocated £383.00pm for a family of 4!!

I have just processed April wages (including my own) and I have an extra £18.

This does not really help much because the cost of living is so high at the moment. It costs us £62 at the moment to fill our car up with petrol.

Any extra income should be covered by the 10% rule but even if not it will be dealt with at the next review. I doubt anyone should panic as the increased costs of everything will easily wipe out the pittances we have been offered from this government.

Michael Peoples wrote:

Any extra income should be covered by the 10% rule but even if not it will be dealt with at the next review. I doubt anyone should panic as the increased costs of everything will easily wipe out the pittances we have been offered from this government.

You've been offered a WHOLE pittance !?

We just got the "p" [:D]

[:D][:D]

What are you like Foggy!

I don't get paid until next thurs [:(]

Just put a tenner worth of diesel in the car and the needle barely budged!!

It's terrible isn't it?

Glad someone has asked the question, do not get paid until next Thursday either but wage slip was ready today and surprisingly I am almost £30 up with changes to tax, insurance and pension payments reducing (not sure how the NI and pension thing works but not complaining!) My annual review was just last week and sent information off when asked for, do I need to inform IP about the change now? with the new IE form I was down on the amount I pay (not by much) but I was being fairly conservative with the increases in everything.

We're going to be around £80 worse off since tax code changes came in - tax man decided the rate we'd been paying for co. car wasn't enough so code has gone up again! Lumping that in with the loss of child tax credit and the fact that we were struggling anyways and September can't come fast enough!!