www.iva.co.uk

I recently received an unexpected refund in my salary due to an error in their calculations.
It was for £440
And I also have an increase of £20 per month salary.
How much of both of these do I get to keep?
I think it's 50/50 but just checking I'm right!

Depends on how the payment was calculated. If the erroneous figure was used, then technically it could belong to the IVA. If the right figure was used at the start, and you have suffered through no fault of your own with lower wages, then the money is absolutely yours. The extra £20 will be dealt with at annual review. Like as not bills will have gone up to offset, but the worst you can expect with that is £10 extra per month.

Regards.

You original contributions were likely based on your usual salary.

I presume if they have sent you a 'refund' you were underpaid at some point, yet still maintained your contributions so I would suspect you can keep that money.

Your net increase of £20 may mean a small increase in contributions will become due but after allowing for tax and any other expense increase etc might work out to nil.

size5 wrote:

Depends on how the payment was calculated. If the erroneous figure was used, then technically it could belong to the IVA. If the right figure was used at the start, and you have suffered through no fault of your own with lower wages, then the money is absolutely yours. The extra £20 will be dealt with at annual review. Like as not bills will have gone up to offset, but the worst you can expect with that is £10 extra per month.

Regards.

Sorry, you have lost me there.
What do you mean by "the right figure at the start"?
They hadn't worked out previous small pay rises correctly over a 3 year period and the refund was due to their error with this.
So do you mean the whole £440 would be mine or 50%?
And the extra £20 per month, should I tell them now or wait till annual review (that isn't until Mar 18)

You need to notify them about the net £20 now but bear in mind you may have to pay it over retrospectively if they back date it when they do the review so keep the net funds to one side.

Check your proposal. Permanent pay rises are not usually payable until the first month after the review and this is not usually backdated. Some arrangements, however, are worded differently and some firms just try it on!