Could my payment level increase at annual review?

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Post by lauren711 » Sat Feb 13, 2021 7:59 pm
So my first yearly Review is coming up in 3 months time , when setting up the iva my yearly income on my p60 from 2019-2020 was £36430

This year from 2020-2021 it is £40,026 an increase of £3569 ( this is from overtime not a wage increase ) roughly £297 extra to live on a month
I was told I could earn 10% above my stated salary which I have worked out to be £3643 meaning I am still under the 10% threshold by £47 although I have actually paid in extra over time on the high months by £200 but my iva practitioner has said I could be re funded this on review as key workers where not required to pay in over time .
My question is , is it likely my iva payments of £249 per month will stay the same or could they look at the over all increase from overtime and increase my monthly payments ? I want to get all the facts first so I can question them Incase they do try and make me pay more , i can prove with wage slips that my hourly rate has not increased throughout the year the extra has just come from over time ,
Could someone just confirm that I have worked that out correctly please ?
The extra from over time has helped so much with extra things that are not included in the monthly expenditure like items for my house , Friends /family’s birthday gifts , new tyres for my car and so on , I’m really hoping I can earn this extra throughout the next 4 years of my iva , it makes the overtime worth it,
Many thanks :)


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Post by Foggy » Sat Feb 13, 2021 9:16 pm
OK -- normally, you pay 50% of overtime as you earn it, on a monthly basis and the 10% 'allowance' is usually 10% of monthly net income --- however, some IPs work this on an annual basis (which can be problematic as it means you have to keep the money aside). The situation with key workers keeping overtime is a temporary measure, due to covid, and is set out here: ... a-protocol

So, ignoring the covid changes, say your monthly take home is 2500 --- you are allowed 10% of that, so 250. If you get 400 overtime that month you keep the 250 and split the remaining 150 with the IVA --- In total you keep 325 and the IVA gets 75

You need to get a calculation, as your IP does it, from the IP, preferably in writing.

Your regular IVA payment should be based on your basic hours and overtime dealt with as a seperate matter, as above.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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