IVA and pay rises

gash

Hi!


At work I've been offered to increase my hours 5 hours per week. I'm a bit confused about whether this extra cash would go straight to my IVA each month? I am aware I only have to give 50% of overtime etc over a certain amount, but if these extra 5 hours a week are part of my 'salary' the IVA would make me give them 100% of the extra wages if I'm not mistaken?


Obviously if this is the case, there is no point me doing the extra hours.


Also, can someone advise what happens if you send in your P60 as part of your yearly review, and you've done regular overtime (paying 50% of overtime to the IVA on a monthly basis as per the rules), BUT less overtime is available in the future, if any! Do they take into account that I won't be able to do the same volume of overtime when they work out the future months IVA payments?? I've just got a feeling they're gonna say 'Well you managed to earn £xxx last year so we're putting the IVA up by £50 per month'. Which won't be possible to pay if my company isn't offering overtime........


Any help appreciated.

cheesedoffwithdebt

Hi , yes if you increase your hours the extra pay would go to your Iva. I'd suggest you think long term though. Will you need those hours once the Iva is over? Don't burn your bridges.
I had to send in my p60 yes as part of the annual review. You'll need to have a frank discussion with your ip if your wages are variable .

PrettyKittyKat

Typically, you have to pay 50% (usually over a 10% buffer) as additional monies as you say, so you would likely retain a larger proportion that 50% initially depending on your current income and new income with the increased hours. Then at your annual review your new income will be updated on your income and expenditure, as well as any changes in outgoings you update and/or evidence. (for example you gas may have gone up, your food bill may have increased, you may have started having your hair cut now etc). Your IVA payment would then increase by 50% of the increase in disposable income (presuming you have no modifications on your IVA requesting 100%). Your income on your IVA should be based upon your basic pay, which may include regular constant additions (such as shift pay).

I would recommend calling your IVA company and asking them what would happen and how they assess income at the yearly review. As each company will work differently, and indeed may change their own process.

gash

Thanks for the help.