Calculations are made in the same way for self-employed non-resident parents as those who are employed. The CSA does have to calculate the earnings differently by working out the average weekly earnings for the past tax year. If this cannot be done, i.e. the business has not been up and running for a full year, then the CSA will use the gross income of the business to date. Reasonable business expenses and VAT are then deducted to obtain a weekly income figure, which is used to determine which rate of
child maintenance should be paid.
CSA3 is calculated on the
gross income of the paying parent:
the basic rate is the following percentage of the non-resident parent''s gross weekly income—.
12% where the non-resident parent has one qualifying child;
16% where the non-resident parent has two qualifying children;
19% where the non-resident parent has three or more qualifying children.
(2) If the gross weekly income of the non-resident parent exceeds £800, the basic rate is the aggregate of the amount found by applying sub-paragraph (1) in relation to the first £800 of that income and the following percentage of the remainder— .
9% where the non-resident parent has one qualifying child;
12% where the non-resident parent has two qualifying children;
15% where the non-resident parent has three or more qualifying children.
(3) If the non-resident parent also has one or more relevant other children, gross weekly income shall be treated for the purposes of sub-paragraphs (1) and (2) as reduced by the following percentage—.
12% where the non-resident parent has one relevant other child;
16% where the non-resident parent has two relevant other children;
19% where the non-resident parent has three or more relevant other children.
CSA2 was calculated on the
net income of the paying parent and in basic form was:15% for one child; 20% for two, and 25% for three children.
