CSA and property income

I currently pay CSA for my three children.

It used to be at a rate of 25% of my net pay from my Job. It is now 19% gross, which basically equates to the same amount.

I''m thinking of buying a property with an annexe. I live in the annexe and rent out the rest of the house.

I called CSA to ask if the income counts towards my CSA payments and if so would it be on the gross or net rental income.

I was told gross. When I mentioned that mortgage and loan fees would eat up a big amount of the gross rented she then said expenses would be taken into account, which basically means net!!! As usual the CSA never have an answer for such things and just refer you to their website which does not mention this.

Does anyone have an answer here or are in the same boat?

Thank you

No...what they''re saying is that the gross PROFIT will be used, because that is effectively the self employed income you''ll be receiving from it.

So the amount after the costs of rental (mortgage interest element - not the capital part, maintenance, solicitors fees etc) but before tax.

gfm198 wrote:

I was told gross. When I mentioned that mortgage and loan fees would eat up a big amount of the gross rented she then said expenses would be taken into account, which basically means net!!!
Thank you

No it doesn''t. Whatever is left after the mortgage and fees are paid is taxable. They will assess you on 19% of what is left BEFORE tax.

That makes sense.

many thanks