Annual Reviews, Question by Question
What the review is for, what you provide, and how your payment can change.
How do IVA annual reviews work?
Once a year, your supervisor takes a fresh look at your income and outgoings to make sure your payment is still fair and affordable. You provide up-to-date information, they compare it with your agreed budget, and the payment is confirmed or adjusted. It is a routine part of every IVA, designed to keep the arrangement realistic as your circumstances change over the years.
What documents will I need to provide?
Proof of your income and spending. You will usually be asked for your recent payslips, your last few months' bank statements, and sometimes a P60 or, if self-employed, updated accounts. These let your supervisor verify your income and check your living costs against the guidelines. Having them ready makes the review quick and straightforward.
Can my payment go up at a review?
It can, if your spare income has risen. If you are earning more and your costs have not increased to match, the review will usually raise your payment, typically by around half of the extra disposable income, with you keeping the rest. The review is also where any overtime or bonuses you should have reported during the year are checked.
Can my payment go down?
Yes. Reviews work both ways. If your income has fallen or your essential costs have risen, your payment can be reduced so it stays affordable, with the term sometimes extended to compensate. The review is a good moment to raise any money worries, your supervisor would rather adjust the payment than see you struggle and fall into arrears.
What if nothing has changed?
Then your payment simply stays the same. If your income and outgoings are broadly as before, the review confirms your existing payment and updates your creditors on your progress. Not every review leads to a change, sometimes it is just a check-in to make sure everything is still on track. Either way, your creditors receive an annual report on how the IVA is going.
Do I have to do anything?
Yes, take part and be honest. You will need to supply the requested documents on time and tell your supervisor about any changes, good or bad. Treating the review as an opportunity rather than a test helps: it is your chance to flag anything that has changed and make sure your payment still works for you. Ignoring review requests can itself cause problems.
A good tip for reviews?
Keep a copy of your agreed budget. Each year you will be working from the budget allowances set in your IVA, so keeping your own copy, starting with the one in your original proposal, makes each review far easier. It lets you compare your real costs against what was agreed and spot anything that needs updating, like a rent rise or new childcare cost.
Should I get advice?
If a review leaves you unsure, yes. While your supervisor runs the review, a free, impartial adviser can help you understand any proposed change and make sure it is fair. This is especially worthwhile if your circumstances have shifted a lot. Free services like StepChange and MoneyHelper can give you confidence that your payment is right for your situation.
