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kitty14

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Post by kitty14 » Mon Apr 05, 2021 6:00 pm
Thanks everyone, I spoke to StepChange but unfortunately whilst waiting for the amount to be added to my IVA I did face a deduction in my pay this month. On a separate note I’ve just been informed about a pay rise from work however the letter from StepChange isn’t very useful and just informs me that I can make up to £1605 a month before I have to make 50% contribution to IVA. Does anyone know if this is before or after tax?
IVA Start - Jan 2021

Foggy

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Post by Foggy » Mon Apr 05, 2021 7:04 pm
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
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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kitty14

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Post by kitty14 » Mon Apr 05, 2021 8:34 pm
Mon Apr 05, 2021 7:04 pmFoggy wrote:
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
So they could ask me to do an updated I&E? To gain the extra now?
IVA Start - Jan 2021

kallis3

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Post by kallis3 » Mon Apr 05, 2021 9:24 pm
As Foggy says - some can ask for an interim review but a lot will wait until the annual review. I don't know how Stepchange operate.
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Foggy

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Post by Foggy » Tue Apr 06, 2021 8:31 am
Mon Apr 05, 2021 8:34 pmkitty14 wrote:
Mon Apr 05, 2021 7:04 pmFoggy wrote:
A permanent pay rise is not dealt with under the 10% 50/50 rules --- there is no 10% disregard and your IVA payment will increase by 50% of the net increase in income. Generally this is taken into account at the next annual review, though some firms 'cheat' and introduce an interim review to account for an increase earlier.
So they could ask me to do an updated I&E? To gain the extra now?
I have seen this done, but not, so far, by StepChange. This is one of the terms that have, of late, been twisted by some IPs, being badly drafted in the first place to allow for such manipulation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

kitty14

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Post by kitty14 » Tue Apr 06, 2021 9:12 am
Okay thanks all, I will await StepChange’s response.
IVA Start - Jan 2021

kitty14

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Post by kitty14 » Wed Apr 07, 2021 7:42 am
Just got a response from Stepchange: You can earn up to £1605 within a calendar month.

If you earn above this amount you must declare it to me and pay 50% of the amount over this threshold to your IVA.

I can confirm that this threshold is based on your Net pay meaning what you receive after deductions.

Your threshold is also 10% higher than the income used on your budget.

(I already told them my new annual income before tax so I’m guessing them saying this I’m in the clear. I believe I just about skim the max monthly amount too)
IVA Start - Jan 2021

Foggy

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Post by Foggy » Wed Apr 07, 2021 8:58 am
Interesting --- yet another new deviation from the way things used to be done, although Stepchange do seem to be becoming pretty liberal of late.
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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