www.iva.co.uk

I have received a letter from my IVA company saying that as my salary went up due to me changing from part time to full time hours I have to pay £2089 within 14 days. Part of my salary is reimbursement of travel costs for attending meetings and training but this is been counted as earnings. Also, due to my salary increasing my tax credits were reduced during this but they do not appear to have taken this into consideration. I am stressing about this as I do not have that kind of money to pay them. Am I wrong in assuming that reimbursement of fuel costs and the reduction in my tax credits should be taken into consideration in their calculations as I had, wrongly, thought that would balance things out. Thanks for your help

I would set everything out in a new income and expenditure to show the decrease in tax credits.

With regards to the fuel allowance - if this is for additional mileage other than back and forwards to work it shouldn't be counted.

They should increase payments by 50% of the net increase (that is, after taking extra costs and lowered credits into consideration).

Hi Louise. Sounds like you need to get this cleared up quickly.

Lots of people on here get expenses reimbursed. They must not be included as "salary". What does your payslip say?

You don't pay tax or NI on expenses so they must either be excluded from your payslip or somehow denoted as expenses.

This is important evidence for you to present.

Your IVA is based on income and outgoings. If you had multiple incomes (wages and tax credits) then all needs to be taken into account. So in answer to your question, a reduction in tax credits does need to be taken into account just like a raise in wages.

Check it all yourself, make all the calculations yourself. If the figures do not match theirs, ask to see their calculations.

Who are you with?

I think it's important to say who you are with as it builds reputations and warns others away from troublesome companies.

Given the substantial changes a new income and expenditure should be carried out. Dont panic too much about arrears as these can often be caught up with throughout the iva or tagged onto the end. It does need sorting out as soon as you can.

Paul

These issues are usually addressed vat the annual review and if done propoerly there may be little or no money owed. Speak to your IP and ask for a full file review.