new job

lucieloo

Hi all i was wondering if anyone could help me please. I am in my last year of my six year iva and i can finally see some light at the end of the tunnel

My question is i have just landed a new job with a new company which im over the moon about too but it is for 7k a year more a year than i currently earn. This is great as when the iva is finished i will feel the benefit too but what will the iva take from me?? I currently pay £370 a month and will be earning about £500 pound a month extra but will have tax taken off so will probably pick up £300 a month more. Does anyone know of any rough figures please??

UpToMyNeckInIt

Most protocol compliant IVA's allow you to keep the forst 10% of any net increase in income, then take 50% in iva contributions of anything over that.

With other plans, it's a straight 50/50 rule.

Dig out your paperwork, and see what it says.

Congrats. on the new job by the way.

lucieloo

UpToMyNeckInIt wrote: »

Most protocol compliant IVA's allow you to keep the forst 10% of any net increase in income, then take 50% in iva contributions of anything over that.

With other plans, it's a straight 50/50 rule.

Dig out your paperwork, and see what it says.

Congrats. on the new job by the way.

Many thanks so basically i will be able to keep the first £30 then half of £270 which is £165 in total?? sorry im a bit thick lol

UpToMyNeckInIt

lucieloo wrote: »

Many thanks so basically i will be able to keep the first £30 then half of £270 which is £165 in total?? sorry im a bit thick lol

That sounds about right (your sums that is, not about you being thick!!!). Assuming you have no increased outgoings, your IP may want the extra £135pcm paid until your IVA reaches its term.

yat360

UpToMyNeckInIt wrote: »

That sounds about right (your sums that is, not about you being thick!!!). Assuming you have no increased outgoings, your IP may want the extra £135pcm paid until your IVA reaches its term.

Just finished my IVA and I think the 10% vaguely sounds correct. bear in mind though when you do your annual income/expenditure review lots of your expenditure will be much higher due to inflation and general prices rises so in reality you will keep much more of your new salary. Any bonus you receive is a straight 50% though.

FiatFan_2

Well done on the new job! It would be worth speaking to your IP, with an income increase like that they may want to increase your payments more inline with your wage increase rather than the income rules mentioned above.

lucieloo

FiatFan wrote: »

Well done on the new job! It would be worth speaking to your IP, with an income increase like that they may want to increase your payments more inline with your wage increase rather than the income rules mentioned above.

Ah thanks very much i am chuffed to bits as 1 more year and the rise will be all mine but sorry FiatFan i dont understand that?? what is the difference??

FiatFan_2

I understood the 10/50/50 income rule was more for overtime, bonuses and shift allowances etc. Where a permanent income increase occurred, a revised I/E would be necessary. Can't wait till the day our iva payment is ours to keep

FiatFan_2

copied off moneyaware

"The standard terms and conditions of most IVAs state something like:

Where you are employed, you must report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation, where the sum exceeds 10% of your normal take home pay. Disclosure to the Supervisor must be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall be paid to the Supervisor within 14 days of the disclosure."

as your "normal take home pay" has increased then your IP may want to take more off you for a few months

lucieloo

FiatFan wrote: »

copied off moneyaware

"The standard terms and conditions of most IVAs state something like:

Where you are employed, you must report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation, where the sum exceeds 10% of your normal take home pay. Disclosure to the Supervisor must be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall be paid to the Supervisor within 14 days of the disclosure."

as your "normal take home pay" has increased then your IP may want to take more off you for a few months

Now that hurts lol. I have worked out that i will actually pick up £500 pound a month more than my other job which is brilliant and i do not mind paying more to the iva but if they are going to take most of it i dont see why i should take the job for more stress for no benefit?? You say for a few months so could they take more then drop it later?? sorry for all the q's but i wont take the job if it is no better for me and my family as the new job entails more hours and a lot more stress.
Do i have to tell them within 14 days of receiving the new salary or 14 days after the new job starts as i dont know exactly how much extra i will pick up if you get me?

UpToMyNeckInIt

Hi Lucieloo,

FiatFan may have a point: I too have heard of other IVA customers being stung by having to conduct a full review if income & expenditure, where they have had big job promotions/pay rises that are likely to be permanent. (Don't know if that's common practice though). Personally, I would argue with my IVA provider that this was not a provision of your original contract.

You have to bear in mind though, that you only have 1 more year on the IVA vs a long-term pay-rise. So don't refuse the job because of something that MAY affect you over the next 12 Months.

First Step: Check with your IP, to see what stance they are likely to take. Chances are, most case-workers won't want to make work for themselves with less than a Year to go, and applying 10/50/50 rule will suffice.

If however they take the full I&E review route. I suggest that you google 'CCCS budget guidelines 2011', (the latest version is not available for download, but this will give you an idea of ALL allowable expenditure categories if nothing else). Download the pdf document.

When reviewing your expenditure, make sure you claim all the allowances applicable to you: Hairdressing, sports/hobbies, kids pocket money, Sky TV, contingency funds etc. Lots of 'allowances' that most of us were probably not aware of at the outset of our IVAs.

Put your actual expenditure down where it exceeds the CCCS guidelines as well.

I would bet that you can justifiably demonstrate a higher Monthly expenditure amount, thus absorbing some of your payrise and minimising future IVA payments.

Have heard of other customers doing this quite successfully.

Hopefully this allows you to keep more of that payrise.