Income Shock!

ami66

got a shock today regarding my income.

I thought that the £50 a month income increase courtesy of hubby and my tax code increase would be ours to keep as per the 10% rule

But found out today that we've got to inform the IP because it's a permanent increase and therefore we've got to have a I&E review to see how much of the £50 will be paid into the IVA

Anyone else been told the same?

Rylynn

Sorry to say I think this sounds pretty standard from when I was in an IVA.

They seem to get you whichever way you turn, which is mighty unfair.

RL

ami66

What seems unfair and therefore a shock is that we spoke to the IP only a few weeks ago about my husbands pay. We explained that due to the tax decrease his pay would increase but by less than 10% weekly.

However the original I&E is worked on monthly figures so in a five week month his income would increase by more than 10%.

At this point Payplan told is that would be OK as they would look at an overall yearly picture for this. Same with my Tax Credits as that has been messed up and a large sum has been paid in advance

Now we don't know where we stand, and because we understood we would be allowed to keep the increase we have pretty much spent it on increasing some monthly bills

Mind I guess if they want to review the income they have to review the expenditure as well.

UpToMyNeckInIt

As you say, it makes sense to review both income AND expenditure. When reviewing the latter, do make sure you can claim your actual expenditure. Also worth remembering that the CCCS Budget guidelines allow for essentials such as sports/hobbies, kids pocket money/school trips, hairdressing - all things that some people don't include initially. See if you can absorb the £50 increase in associated allowable expenditure.

Also, if you want to work out exactly how the recent tax changes affect you, it is worth looking at the tax/NI calculator at: 'listentotaxman.com'

As has been said, it is likely that the cost of living will meet, or exceed the increase in income.

Best of luck, and let us know how it turns out.

Anondebtadvisor

Have any of your expenses increased? utilities or car expenses often "eat" up this increase in income

milliemonster

Also check your paperwork carefully as protocol compliant IVA's only take 50% of any increase so at the very worst you should get to keep £25 of the increase, and then if you can wangle your expenditure by £25 you'll get to keep it all, happy days

ami66

milliemonster wrote: »

Also check your paperwork carefully as protocol compliant IVA's only take 50% of any increase so at the very worst you should get to keep £25 of the increase, and then if you can wangle your expenditure by £25 you'll get to keep it all, happy days

I've checked my paperwork and it clearly says 50% after keeping the first 10% but they aren't allowing us the 10% it seems.

I'm updating the expenditure side, council tax and water rates have gone up and I've arranged for the gas/elec DD to go up now rather than wait until June for a review.

IP won't allow the increase in car insurance as it's for an additional driver, my teenage son. But as our original I&E had no expenses for the kids I've added in pocket money, school trips and haircuts which covers the car insurance.

I've currently looking at extra surplus income of £8.66 which I'm happy to split 50/50 just to show willing.

Now need to wait for payslips and then see how agreeable the IP is going to be.