www.iva.co.uk

Hello, I've been reading for sometime and this forum has helped me immensely and my Iva was approved on 08/01/16. Thank you everyone for all your posts, they really help lots of people.

I have a query I am hoping someone can help me with, I think it's a bit of a confusing one!

I have been asked to bring my pension payments down from 5% to 1% which I have now done and will show in my pay from the end of this month.

I have been told that if I earn over my standard monthly wage then the first 10% is mine and then 50/50. So here's my issue for my March pay.

1. I am due a small payrise which I have been told won't be taken into account until my next review, if at all.
2. I am due a bonus.
3. My pension will reduce to 1% so take home pay will go up because of this although unsure if I will have to pay more yet or next review.
4. The tax code will go up.

I have no idea how I am going to work out how much money 50% of my after tax / NI bonus will be taking into account the above. I don't want to pay extra out of my pay rise and tax code going up although I understand I could pay the extra between 1% to 5% on my saved pension money.

Hope I'm making sense,
If not let me know, I appreciate anyone's help. I was thinking to wait paying until Aprils pay when I would get a normal pay with tax code gone up, pay rise and pension down to try to work it out!!
Thank you!,
Em

Hi, sorry this got missed, not an expert myself but if I were you, I'd get IP to work figures out and then look over them myself to ensure that I agreed with their workings.

Such a shame you have to reduce pension.

Hopefully, someone will be along later (or an expert on Monday) to give some advice.

All the best.

I would imagine your ip will have calculated what your payment should be with the decrease in pension payment. So when you get your payslip I should think they will take that figure and work out the 10% you are allowed to keep and then 50/50 on the extra. I didn't have to decrease my pension but my Iva was a set amount each month and if I did overtime etc I would call them and they ask for the net pay then work out what I was allowed to keep and what had to be paid in. In the end I managed to work out roughly how much overtime I could do and still be able to keep it as it was within the 10%

I also think it is bad that you had to reduce your pension contributions. I was allowed to keep mine at the rate I was paying which was quite high.

I was allowed to keep paying mine too which were quite high it's a shame you are being asked to reduce

Thank you all, I will send the figures to the ip and see what they come back with. I will just have to trust they work it out correctly as like I have said all changes are due in this months pay!!!

Actually just realised that the tax code don't go up till end Aprils pay so that's one less thing to take into account!

Hi

If creditors asked for the reduction in pension contributions then the agreed payment each month should include the proposed reduction following your creditors meeting.
Only your IP can confirm this so do not hesitate to contact them about this and your pending pay rise and bonus.
Get any response in writing or an email so that there is no confusion in the future

Good luck with your IVA

Regards

Hi - I agree with Andy - it would be unusual for this to suddenly happen post IVA so suspect the reduced pension contributions were as a result of them trying to inrease your disposable income and therefore contributions into the IVA.

In which case the bonus/overtime should be quite simple to calculate.

Speak to your IP when you get the next payslip.

Thank you Andy and Lisa. I was asked to reduce my pension to 1% so assumed that when I did my agreed payments from my IVA that started in January would be recalculated and the extra take home pay put towards the IVA. Hoping I am wrong, will email them tomorrow to inform them I have carried out their instructions and ask the question.

Good luck.

I think its ridiculous that you were asked to reduce pension contributions to 1%, it's messing with your future and not just the current situation.

Thankfully the company I chose allowed mine to stay at the higher contribution rate.