Pay Rise.
Wonder if anyone can help me, i am going to get a payrise from January and my income will go from £1150 a month after tax to approx £1230 a month after tax. I have a letter from my IP that states i can earn £1265 a month before i have to pay over 50% of anything above that figure to them(however i think this may only relate to overtime). Does this mean that i can keep the full payrise of will they want some of money?
Hi Chris. The 10/50/50 rule relates to overtime, not regular pay rises.
Now, as with all things, not all IP's do this the same way! Most will disregard the pay rise increase until the annual review, when, from that date, 50% of the pay rise will be added to your disposable income ( some of it might be cancelled out by increases in expenditure).
A few IP's will take the 50% increase from day one.
In either case you should be at least £40 better off.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I agree with Foggy - our proposal did state that pay rises will only take effect from the review date but that we had to advise them when the increase happened.
Hopefully this will be the same with your IVA proposal.
As with all queries like this, the answer really lies within the terms of the IVA itself - and if Chris is in any doubt he/she really ought to seek the advice of their own IP. Hopefully you will be able to keep some of the money, as there has to be some incentive for people to better themselves whilst in an IVA.
