www.iva.co.uk

Hi,

I have a quick question. I'm just going through my second IVA annual review and I'd just like to check the following scenario;

I had a temporary promotion in May, significantly increasing my salary. My original IVA payment was £120. My new IVA payment became £280.

My annual review has now been calculated at £430, even though my salary hasn't changed since May and my I&E hasn't changed either.

My caseworker said that the original review to £280 was based on a new monthly salary that was £200 less than what I submitted. He didn't know why.

He also stated that the amounts submitted in the I&E were too high in some areas (this wasn't explained when the May I&E was submitted).

What they have essentially done is calculate the payments twice, with the same I&E values but different IVA payments.

This doesn't feel right and I have questioned it - all they keep saying is they've put the numbers in and this is what it has calculated.

I believe the calculation should be made based in the original £120 IVA payment as this would make the new payment £380.

Does anyone have any thoughts or comments? Do I push back or is this how it works?

Thanks in advance, Peter

I would continue to push back on this and ensure you are satisfied before agreeing to it.
How long is your 'temporary' promotion for?
I trust this increase is only 50% of your increased wages and you are retaining the other 50% ?
Ensure your I&E reflects your true costs and everything is covered.

I agree with Luluj. If this is a temporary promotion then the 10% 50/50 rule would make more sense and the money can be dealt with monthly. This means no reviews and is very simple. If the promotion is then made permanent it would be advisable to have a full review at this time or at the next anniversary.

You need to speak with the IP and ask them how they arrive at these figures especially in such a short period of time.

This has been posted twice.