Hypothetical question...
I am successful in securing a new job which comes with a substantial pay rise. I understand that the first 10% is mine with the rest being split 50/50 and increasing my monthly payment. However, my question is what happens at the next review? I now have extra money to spend and you'll see that this is not assigned to an expense and therefore extra - will this be deducted too? With the pay increase, you've taken a cut which ups my monthly payments but will you take even more at the next review or can I save it? Is it worth the extra stress and responsibility of the new job if the financial reward is all taken?
The 10%, 50/50 split you refer to is for overtime and bonus payments from work. For a permanent pay increase the, up to now, usual course is that the increase is all yours until the next annual review, after which, half the net increase in income is paid into the IVA and you keep half. At least that is the way both of my IP's ( I was transferred mid-IVA) did it and the way I interpret the terms.
I say "up to now" because some of the more avericious firms are now introducing an interim review to capture their half earlier. But, at worst, it should be a 50/50 split.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
