IVA - Salary increase

Finlay5224

Hi,
I know this question has been asked a million times, but I'd like to present my question.
I'm due to join a new company in the coming weeks and am expecting a salary increase.

I'm trying to understand whether I need to let the IVA know if this change/increase now or wait until the annual review? My annual review is due in October this year.

I've read through my paperwork and it states the following:

The Supervisor will review my income and expenditure annually and I will increase the monthly payments by 50% of any net surplus income (after taking into account costs of living) one month following such review. I will provide copies of payslips, P60’s, bank statements and any other such information that the Supervisor may reasonably require.

In addition to my monthly contribution, I shall report any overtime, bonus, commission or similar to the Supervisor if not included in the original surplus calculation. Where the sum exceeds 10% of my normal take-home pay, disclosure to the Supervisor will be made within 14 days of receipt and 50% of the amount (over and above the 10%) shall then be paid to the Supervisor within 14 days of the disclosure.

Failure to disclose any exceptional overtime, bonus, commission or similar by me will be considered a breach of the Arrangement and the Supervisor shall notify the Creditors in the next annual report with proposals for how the breach is to be rectified. This may be by means of an extension to the term of the Arrangement by a maximum of 6 months without the requirement of my Supervisor to convene a meeting of creditors.

Now this is not overtime, nor a bonus or commission or similar - So am I expected to let them know of this salary increase?
And if I don't, will they expect me to pay the increase for the remaining months at the time of the annual review?

I've read a number of posts saying different things.
Some say to keep the 50% difference aside, some say they can only take the money FOLLOWING the review and not backdate it.

Please let me know if you need any further clarity of the situation.

Thanks

Finlay

Mermaid89

You are supposed to report any overtime/bonus DURING the year. If you have exceeded your allowances the review will make you aware of how much you owe. The reason why you are supposed to report it "as and when" is so you don't have an additional income bill at the end of the year that you need to make an arrangement for.

Finlay5224

Mermaid89 wrote: »

You are supposed to report any overtime/bonus DURING the year. If you have exceeded your allowances the review will make you aware of how much you owe. The reason why you are supposed to report it "as and when" is so you don't have an additional income bill at the end of the year that you need to make an arrangement for.

Thanks for your response.
But this is regarding a salary increase as part of a new job.
Not overtime/bonus'

PrettyKittyKat

It will be treated under additional monies under an I&E review takes place (typically at an annual review). it is the 'similar' referred to in the exert you have posted, I.E a higher wage than what the IVA is based upon. Therefore anything over your additional monies figure 50% has to be paid into the IVA. It is recommend you make this payment when you earn it as otherwise it is natural to spend it and then struggle to pay the money in.

When it is a permanent increase it is advisable to do a full I&E review at this point as any expenditure changes can also be taken into account, e.g. extra travel costs. However if the I&E means your payment increase would be more then your 50% under additional monies ruling then you may prefer to pay the extra in under that ruling until the annual review then you get a short-term benefit of slightly more money.

foxy-stoat

You need to save 50% of any increases when you get them and expect to pay a lump sum at the annual review. If you do this then you shouldn't have any nasty surprises.

If it costs you more in travelling or you incur other costs then you can update your expenses accordingly.