Pay increase in 6th year of IVA

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by dawn813 » Tue Aug 08, 2017 8:22 am
Hi guys - I have now finished the original 5 year term (phew) I am just into a 12 month extension in lieu of equity. I have had several pay increases along the way and these have been dealt with at annual review. So I have been told my next review will be a final review in March ( 6 year term will finish in July). Last week I was offered a new role which will increase my net income by approx £700 a month - will this be dealt with at final rev or is this mine to keep ? Also the increase is for becoming a board director on top of my full time job ( 12 hours a month so now a 40 hour week rather than 37 ) is this overtime so 10% 50/50 or since it is regular counted as a pay increase ???? So 50/50 . Also last question I will need a laptop of my own and a couple of power dresses can I offset ?
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Michael Peoples
Industry Expert
Posts: 15189
by Michael Peoples » Tue Aug 08, 2017 8:42 am
There are a number of questions raised and I suggest you speak with your own IP. This could be deemed almost a second job rather than a promotion which may come under the 10% 50/50 rule as you are correct about payrises and annual reviews. Your IP may allow some offset given the new role so if you do a review now it could lead to an increase in expenditure allowances.

You may need to check the situation regarding a directorship as the IVA may cause a problem here. If the other members of the board are not aware of the IVA they may have to be informed so I suggest you check the articles of association and perhaps speak with HR before you take on the role. Again your own IP should be able to help and advise.
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