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Finding detail on new CMEC Gross Income Scheme

  • JLGsDad
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06 Aug 10 #217972 by JLGsDad
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My head hurts - I've just spent a frustrating hour on here & the surfing the net without success. Anyone know where I can get the detail on the anticipated CMEC Gross Income Scheme for calculating child maintenance?

What I'm most interested in is "what is gross income exactly?". How does it manage pension contributions, [investment scheme] cash dividends, dividends reinvested, etc?

Personal circumstances

:( My ex is hostile, money-fixated and doesn't see why her standard of living should suffer just because I have to pay for a 2nd home/car/life after the divorce she caused & demanded. ps said this so you'd have sympathy for me
B) I'm not interested in how to dodge payment by fiddling my income (I already pay more than the CSA requires). and this too
:( I am off sick from a large company.
:( I have no self-employed earnings.
:) I have a small military pension.
:unsure: I have no sick pay but my company is still paying me around 10% of my pay which I expect them to claw back.
B) I want to top up my company pension contributions to at least extinguish any pay not clawed back, and probably more on top.
:) I have shares and unit trusts (held as dealing accounts, share certificates, ISAs, company schemes) & with a mixture of cash and reinvested dividends.

Thanks for any help.

Ian

  • onamission
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06 Aug 10 #217974 by onamission
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Found this old post don't know if its any help

www.wikivorce.com/divorce/Divorce-Advice...lation-based-on.html

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06 Aug 10 #217975 by JLGsDad
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onamisson, thanks.
I did have a look at it and couldn't find anything other than the basic percentages. I've already been through the mill on pension contributions under the current scheme and have the scars to prove it.

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06 Aug 10 #217980 by onamission
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There's a support forum for CSA complaints/info etc. might be worth joining and post your query there, if you get some answers post back here, others will definately be interested.

www.csahell.com/

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15 Aug 10 #219351 by dadanon
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As from 2011, the new calculation will be based on information from the HM Revenue and Customs on th NRP's gross income for the latest available tax year. The amount will be fixed for one year at a time unless the income varies by 25%. All new claimants will have their claims calculated under these new rules. Existing CSA claimants will be phased into this new scheme by 2014.
For a NRP whose weekly income is £800/week, the following rates will apply to the excess over £800: 9% for 1 child; 12% for 2 children;15% for 3 or more children.
Existing users of the CSA (old and new rules) will have to decide whether they move to the new system or leave the systerm altogether to set up a private agreement. This transfer is supposed to start 2011 and completed by 2014 but there currently is no information on how this transfer will take place.
I'm not sure what the CSA will classify as income but if thing remain the same it will be like now, that is, payee income only, at least in the first instance. Then it would be up to the PWC to apply for a variation. However, if the CSA start looking at tax returns and taxable income, it could very well include dividends from the outstart. Currently, in the initial calculation, dividends and renatl income are not included in the CSA claculation.
I too am a bit concerned. I just don't like knowing well in advance what may happen.

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15 Aug 10 #219391 by Fiona
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A self employed person's “gross earnings” are his taxable profits calculated in accordance with Part 2 of the Income Tax (Trading and Other Income) Act 2005.

When the gross income scheme is introduced across the board deductions of income tax and National Insurance contributions will no longer need to be made as part of a maintenance assessment and tax credits should no longer be included as income.

As far as I'm aware details on how the system of assessing liability will treat pension contributions haven't yet been released.

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