Hello everybody. Sometime in the new year I have a chance to go onto a different rota at work. Due to including weekends etc my take home pay will increase about £250 per month. Assuming all my other expenses remained the same how much of this increase would have to be paid into the IVA. I have tried researching this & believe I would have to pay in 50% but need some clarication.
You may well have to do a new I&E but you need to speak to your IP about this. You will certainly have to pay at least 50% across.
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You may be able to keep the first 10% of your basic take home pay and split the rest. This would apply if the money is deemed 'overtime, bonus or similar'. If it deemed a raise to your basic salary it should not be an issue until the annual review at which stage you can claim for any increases in expenditure over the previous year. You would then pay 50% of the new surplus into your IVA in addition to the normal payment.
Speak to your IP when the time arrives who will keep you right.
I am starting a new job this month and my income is going up by £300pm. My IVA annual review isn't until July. Does this mean I will keep the full increase until the annual review and only pay across extra from the following (August) payment? I don't want a big bill come next August for backdated contribution increases!
Hi Melanie, I am getting tied up with the annual review of I&E which is when the proposal says " the supervisor shal review my I&e to detrrmine whether any increased contributions can be made. I will pay increased contributions from the month following the review, unless agreed otherwise." Then it goes on to say about paying across 50pc of pay increases (after increases in expenses) and the supervisor reviewing income every six months to ensure full contributions are being made and "the payment required will be on a cumulative basis". I am interpreting this second part to mean that come annual review time the increase in contributions can be applied retrospectively. Your level of customer service is rare Melanie!!!
I would interpret those terms to read that after the review, if there is an increase in disposable income then you have to increase your payments by 50% of the increase moving forward. Remember that disposable income is calculated after expenditure increases and not before.