www.iva.co.uk

Hi i would like some advice please.
Im in an IVA and have been for nearly 2yrs.I've been doing lots of overtime to pay back as much as i can and send a copy of my payslip with an accompanying cheque for 50% of overtime,bonus etc.
I get paid every four weeks and send a cheque (every four weeks) for 50% above what had been agreed i can earn on my income and expenditure form.
For example I am allowed to earn £1000.00 a month before I have to pay any extra so if I bring home £2000.00 I pay them £500.
I have been doing this since I started my iva and to my knowledge this has been fine. This month however I have recieved a letter from my iva company stating that I am paying the wrong amount and to get a true amount for the month I need to multiply the money I get over a four week period by 13 and divide by 12. This would mean if i earnt £2000 and multiplied it by 13 and divided it by 12 then i would be paying a contribution based on £2167 which is £167 more than I am bringing home for the month. So under their calculations I am going to be stuggling before I have even been paid.
Is this formula correct?
Do they have the right to do this as I have been paying them my over time payments every four weeks without any problems for nearly two years?
Many thanx

Surely if you're paying every four weeks and not every calendar month then it equates to the same? Maths aren't my strong point so excuse me if I am wrong, I have a spreadsheet that does everything for me! My husband is weekly paid and can earn x amt, anything over is paid 50% in uplift payments, weekly allowance x 4.33, makes for an average monthly figure?

Hi thanks for reply,i agree with what you have said.If i paid 12 monthly payments and get 13 pay days then i can understand their calculations but i am paying 13 payments a year so they are still getting same amount.
I've rang my IP to query this and they said they can see what im saying and will have to look into this and going to get back to me!

Your proposal would have shown monthly earnings, which would be higher than you receive on a four weekly basis. In order to work out what monies you need to use as the base figure, you need to take the figure quoted for your income in the proposal, multiply this by 12 and divide it by 13. This gives an average figure for you to work on, which you can compare to your payslip and then send over 50% of the difference.

Lesley now frantically scanning proposal documents for hubby's earning figure and going to check formulae she is using to check she has been sending in correct uplift amount!

Spot on for me, phew!