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CSA - New proposed Gross calculation

  • Lateinlife
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13 Jan 11 #245034 by Lateinlife
Topic started by Lateinlife
CSA have told me that there is a proposed change to child maintenance calculation but wont tell anything about it.

It is rumored that the calculation will change from a Net income to a Gross income calculation like in the USA.

Does anyone know any more about these proposed changes, i.e. what it will be and when and more importantly will it be retrospective for thoes of us that have a private agreement.
Andy

  • mumtoboys
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13 Jan 11 #245051 by mumtoboys
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If you have a private agreement, you're not bound by changes the CSA makes.

Essentially, they're looking at eliminating the loop hole that allows a NRP to put a ton of money into his/her pension and/or take other 'perks' given by their employer and thus reduce their maintenance liability. So, instead of the 15/20/25% net calculation it's shifting to 12/17/19% (I think - not sure of exact figures)gross.

It was mooted for implementation as of April this year but I think anyone who has spoken to the CSA about it in recent months doesn't believe it's going to happen - I think the CSA are saying, unoffically, that they havne't received any direction on it.

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13 Jan 11 #245070 by Lateinlife
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Thanks Mumtoboys,

I spoke to the CSA about this 3 months ago and under the current net calculation I pay 15% of my current net salary as a private agreement.

Strange thing is they were quite clear that my calculation was based on not just basic salary but also my monthly car allowence too i.e. £1802 net pm plus car allowence of around £250 net pm approx. Seems unfair as the car allowence pays for the lease and wear and tear on the vehicle and yet I cant detatch that from my monthly income so it is deemed to form part of my income.

Anyway - if I apply the proposed gross calculation then my monthly increase would be only about £8 and only when the Consent Order is over 12 months old and again only if my ex goes to the CSA after that period to ask them to adminster any future collections. The child will probably be working by then so this may not even happen.

You are right by the way. I kind of got the same impression from the CSA that no direction had been handed down and thet seemed disinterested in my enquiry at the time.

Andy

  • cyberangel
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19 Jan 11 #246231 by cyberangel
Reply from cyberangel
The people who are on the
end of the phones at the CSA know as much as you do about the changes that's why they cant give you any info, They'll get told when it's definate and only be given proper details on the changes just before they happen

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