Help with wage one off payment

A question about : Help with wage one off payment

Hi,
I'm due to receive a one off non consolidated payment in my wage this month which is a pay progression pay out. This is because we no longer qualify for annual pay progression within my grade. I am concerned that because it comes in one lump my IVA provider will take 50% of it as they will see it as earnings. I have 19 months left to go on my IVA and this payment is supposed to cover the next 4 years.
My question is do they have the right to take it? I am very worried about this.
Thanks

Best answers:

• In short... yes... as it is income from your employer so is earnings.
  If it goes over your allowed income for additional monies calculation purposes then you will need to pay 50% into the IVA.
  How significant is the payment? Are you talking hundreds? thousands?
• I was dreading that answer, I suppose I thought as much. The payment is Ј1900 before deductions. So after my 10% earnings allowance and tax they will probably take Ј700.
  Will this be taken immediately or at my next review? That's in September.
• Is this one off payment in lieu of a regular extra amount each month?
  If so, then my own opinion is that it should be considered at the annual review stage. If so, I would argue that the nett amount received be spread over twelve months. So, if Ј1200 (easy figure to work out) then an increase in take home of Ј100 per month. However, the rules of protocol compliant IVA's allow for 50% of pay rises AFTER a revised I&E to be retained by the debtor.
  If your pay has increased by Ј100 and your outgoings by Ј50, then you have Ј50 per month more, however only Ј25 is payable. In that scenario, you have 8 times Ј25 to pay over, which is Ј200, plus an extra Ј25 per month going forward. This probably would work out better for you, but as ever with IVA's, you should speak to your own supervisor for clarification.
• In a way it is in lieu of a payment. The 1900 is instead of getting a payrise every year for the next 4 years. So the 1900 should be divided into 4 and then again by 12 giving me a payrise of about Ј40 a month. If this was the case then I wouldn't go over my 10% allowance every month and pay no extra until review date.
  It doesn't seem fair that I should pay such a big lump when this money is supposed to be for a 4 year period, just over 2 of which would be outside my IVA.
  I don't want to be landed with a massive increase after review nor do I want them to take it from me without notice.
• Your logic looks sound to me, and I am sure you could find Ј40 per month extra expenditure somewhere at annual review time.
  Still, best to talk to your supervisor though, just to cover your own back.