www.iva.co.uk

Does someone understand the 50% rule please.

I had pay rise in year 1 and immediately paid 50% of it into the IVA. This was in the terms - had to be declared within 14 days and payment adjusted.

Now at first year review and wondered if all of the pay rise gets sucked into the IVA payment or do I get to keep the 50%?

I'm not factoring on living costs yet as I want to understand the pay rise position first.

any help or advice would be much appreciated.

Hi Westie. This is one of the areas IP seem to differ on interpretation. Some, like yours, it seems, want the 50% increase right away. Some like mine and my IP before that, are happy to let you keep the whole rise until review time, when they then grab the 50% increase the month following the review ( as written in my proposal, and possibly in yours).

The rises they should get right away are the shares of extra income -- overtime, bonus payments etc.

Check your paperwork and see what it says about permanent pay rises and when they should be grabbed.

My understanding is your payrise will he a 50:50 split. When completing your annual review ensure the expenditure truly reflects your outgoings ...any small increase needs to be included so you are fairly assessed.

Yes my IP only takes pay rises into account at the annual review although I have to inform them of my rise at the time I receive it, but then they will notice on my payslip I guess!, but it is in my proposal that 50% of any pay rise is due to the iva, unless I have an increase in expenditure which can offset it