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Scottish Trust Deed Forum
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Topic starter
13/07/2018 1:26 pm
Hi
I’ve been in a trust deed for about 2 months now and lin last months wage I received a small backdated pay. What happens is that our pay increase takes effect from September 2017 however this does not actually get paid to us until the following year and our payment therefore gets backdated for those months which works out about 7 months. After tax and my pension(recently opted back in) my wage is no different from when I started the trust deed and if anything only a matter of pounds difference.
Should I declare the small amount of backdated pay? This was roughly £380. If I do declare it, will my trustee ask for this?
Thanks
13/07/2018 1:56 pm
Hi Ksm00009.
Yes - you should make your trustee aware. Failing to do so could cause arrears to build up (identified at your next review).
I'm afraid it's likely that your trustee will request an increased contribution in lieu of this.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
13/07/2018 2:14 pm
Thanks for your reply. Do you think they will ask for the full payment back at once or just increase the amount I pay monthly? This is just a one off payment and I won’t be likely to get another for at least 18 months(if this is approved by our employer).
13/07/2018 2:24 pm
KSM
Trustees hands are tied with this - the legislation is very specific in that any income left after applying the Common financial statement must be paid as a contribution. This causes endless amounts of problems with overtime and bonus etc.
from different focus groups I have attended, many trustee firms oppose this and wish to move to a more fairer process but at the moment we are required to work within the parameters of the legislation.
I would make your trustee aware of this.
Sharon is no longer posting in the forum.
Topic starter
13/07/2018 2:29 pm
Hi
Thankyou for your response.
In your experience do they tend to take the lump sum at the one time? I’ve had to use the money that has been paid and I’m worried they will ask for all of the payment at the one time which I don’t have.
Thanks
13/07/2018 3:08 pm
Hi again,
If they ask for an extra sum that is no longer available, it might be the case that it has to be added onto the end of the arrangement.
That's just speculation though. Best to get an answer from your trustee.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
13/07/2018 3:18 pm
Hi KSM
If the funds have been spent then yes it is possible for the trustee to agree on extension.
TDA is correct though - it is usually down to your trustee.
Sharon is no longer posting in the forum.
Topic starter
13/07/2018 3:23 pm
Thankyou both, I have emailed my trustee so hopefully I can get this sorted!
13/07/2018 3:27 pm
I'm sure you'll get it sorted one way or another Ksm00009.
A good idea to deal with it proactively as you are.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
