I currently have 10 months to go before my IVA is due to end. I have just been given a modest pay rise of £120 per month and was wandering if I need to pay half of this into my IVA. It does not take my income above the 10% point so the 50/50 I assume would not come into effect like bonuses etc but as it’s a permanent pay rise and my expenditure has not altered I figured I’d have to pay half into the IVA. I’ve had a read in my original documents and it basically says pay rises will be dealt with at the next annual review but as my next review will be my final review I wasn’t sure if this might effect anything? And I would much rather pay extra now than in 10 months time told to pay in an additional £600. Cheers in advance for any comments.
As you surmise, permanent pay rises are dealt with on a different basis to overtime etc., and the 10% de minimis doesn't apply. Your supposition that the rise should be dealt with at the next annual review is the way it has always been done, until recently. Of late, some IPs have taken to slipping in an interim review to catch the increase early (incorrectly in my view).
To be on the safe side, as you suggest, it is better to declare the rise now, whilst at the same time giving your IP the gist of your understanding of the terms. If he disagrees and wants an interim review, I would be inclined to ask him under what clause of the Standard Terms and Conditions he is acting. With any luck he will let it lie.
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
Thanks for your reply. And I will defiantly take your advice. I will send them an email now and see what they come back with. Better to pay the extra now if needs be than be told extra is owed next year. I know it won’t equate to much but I’m literally counting the weeks until July, so I don’t want anything to spoil my planned party.