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Confused CSA Payments - Pls help to clarify

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markalldrigee
Posted by
New Member

09 Jun 13 #396391 by markalldrigee

Topic started by markalldrigee

Hi
Firstly, I am not someone who is trying to hide money away as most fathers are being tainted with the same brush, So pls review this post independently.

I am divorced; have 2 kids who spend over 100 nights with per annum.

I was unemployed and am now self employed earning not much but ok. I submitted all my end of year tax returns and my ex started the CSA case from being amicable agreement. CSA contacted me and I submitted my previous years accounts.

Now CSA have come back with an assessment.

My question is that does CSA calculate their assessment on the overall gross figure of tax submitted. Or do they take into account the expenses and losses.

Surely for example if someone earns £10K per annum, has losses etc and takehome income is £5K, the CSA assessment has to be on £5K and not £10K as the person did not make £10k.

Pls advise as I am well confused. Does CSA calculate on gross or net income?

Thanks

markalldrigee
Posted by
New Member

09 Jun 13 #396392 by markalldrigee

Reply from markalldrigee

further to the above post: I have taken the following from CSA:

We work out child maintenance by applying one of 4 rates to the non-resident parent’s ‘net weekly income’. Income is earnings,
money from an occupational or personal pension, certain benefits and in certain circumstances tax credits. Net weekly
income is the amount of income you are left with after paying things like income tax, National Insurance and contributions to
a pension scheme"

So if the person earns £10K, has £5K expenses, taxable pay is £5K, the calculation is against £5K and not £10K.

Correct?

WYSPECIAL
Moderator

09 Jun 13 #396409 by WYSPECIAL

Reply from WYSPECIAL

Correct.

Its net pay after tax, NI and pension contributions.

Child Maintenance Options
Moderator

10 Jun 13 #396486 by Child Maintenance Options

Reply from Child Maintenance Options

Hi Mark

Thank you for your post. My name is William I am the Child Maintenance Options consultant.

We are a different organisation to the Child Support Agency (CSA), but I will try and point you in the right direction.

The CSA would work out child maintenance using your net income, which includes earnings, money from an occupational or personal pension and tax credits. They use the amount of income left after deductions such as Income Tax, National Insurance and any money paid into a personal pension scheme. There are many other financial factors that may be taken into account by the CSA, so you may wish to speak with them directly. You can find their contact details on any letter they have sent or on this website: www.gov.uk/child-support-agency.

You also mention in your post that you have previously had an amicable agreement in place for maintenance. Many parents choose to sort out child maintenance this way. It is what we call a family-based arrangement which is simply an agreement between you and your ex-partner about who will provide what for your children. It can include money and other kinds of support, for example providing clothes or paying for activities.

I understand that your family-based arrangement has now broken down. However, you do not have to involve the CSA or anyone else in your agreement. If you and your ex-partner are able, you may wish to try and discuss the issues surrounding the breakdown to get your arrangement back on track. This can be done without involving anyone else, or with the help of friends, family, Child Maintenance Options'' guides or a professional mediator.

If either of you has a change in circumstances, negotiation also plays a big part in ensuring that payments continue.

To help you renegotiate your family-based arrangement, we have written several guides that you may find useful. They are tailored to the different roles of either parent to help them reach an arrangement.

There is also an option for setting up maintenance through the courts that you may wish to consider, which is known as a Consent Order.

For more information about family-based arrangements and access to useful tools and forms online you can visit www.cmoptions.org, or if you would prefer a confidential chat you could call the Child Maintenance Options team on 0800 988 0988 (free from a landline).

We also have a sorting out separation web-app that you may find useful, it offers help and support to separated families. The link is: www.wikivorce.com/divorce/Sorting-Out-Separation.html

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Moderators: wikivorce team, rubytuesday, dukey, hadenoughnow, Tets, Shezi, Linda Sheridan, Forseti, Mitchum, WhiteRose, Lostboy67, WYSPECIAL, Bubblegum11

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