Help with wage one off payment

civilslave_2

Hi,
I'm due to receive a one off non consolidated payment in my wage this month which is a pay progression pay out. This is because we no longer qualify for annual pay progression within my grade. I am concerned that because it comes in one lump my IVA provider will take 50% of it as they will see it as earnings. I have 19 months left to go on my IVA and this payment is supposed to cover the next 4 years.
My question is do they have the right to take it? I am very worried about this.
Thanks

Giggles_Fairy

In short... yes... as it is income from your employer so is earnings.

If it goes over your allowed income for additional monies calculation purposes then you will need to pay 50% into the IVA.

How significant is the payment? Are you talking hundreds? thousands?

civilslave_2

I was dreading that answer, I suppose I thought as much. The payment is £1900 before deductions. So after my 10% earnings allowance and tax they will probably take £700.
Will this be taken immediately or at my next review? That's in September.

DorisTrousers

Is this one off payment in lieu of a regular extra amount each month?

If so, then my own opinion is that it should be considered at the annual review stage. If so, I would argue that the nett amount received be spread over twelve months. So, if £1200 (easy figure to work out) then an increase in take home of £100 per month. However, the rules of protocol compliant IVA's allow for 50% of pay rises AFTER a revised I&E to be retained by the debtor.

If your pay has increased by £100 and your outgoings by £50, then you have £50 per month more, however only £25 is payable. In that scenario, you have 8 times £25 to pay over, which is £200, plus an extra £25 per month going forward. This probably would work out better for you, but as ever with IVA's, you should speak to your own supervisor for clarification.

civilslave_2

In a way it is in lieu of a payment. The 1900 is instead of getting a payrise every year for the next 4 years. So the 1900 should be divided into 4 and then again by 12 giving me a payrise of about £40 a month. If this was the case then I wouldn't go over my 10% allowance every month and pay no extra until review date.
It doesn't seem fair that I should pay such a big lump when this money is supposed to be for a 4 year period, just over 2 of which would be outside my IVA.
I don't want to be landed with a massive increase after review nor do I want them to take it from me without notice.

DorisTrousers

Your logic looks sound to me, and I am sure you could find £40 per month extra expenditure somewhere at annual review time.

Still, best to talk to your supervisor though, just to cover your own back.