CSA Gross Income CM Scheme questions.

plinky1
plinky1 Posts: 34 Forumite
in Child support
The new scheme is going to be coming in 2011.
Have read loads of views, articles and even the white paper, but still do not understand how a certain calculation will be made.

Can anyone help?

2 qualifying children 16%
&
2 relevent children this is where I get confused...
There is no mention of what percentage they use for the relevent children.

They mention basic rate, but dont give the basice rate details???

They way I read the white paper was
2 qualifying children 16%
2 relevent children 16%
one would cancel out the other and be nil assessed...err doubt that!!

Would it be flat rate of £7 then and the variations for qualifying childrens stays.

Please help.
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Comments

  • CMAC_2
    CMAC_2 Posts: 187 Forumite
    plinky1 wrote: »
    The new scheme is going to be coming in 2011.
    Have read loads of views, articles and even the white paper, but still do not understand how a certain calculation will be made.

    Can anyone help?

    2 qualifying children 16%
    &
    2 relevent children this is where I get confused...
    There is no mention of what percentage they use for the relevent children.

    They mention basic rate, but dont give the basice rate details???

    They way I read the white paper was
    2 qualifying children 16%
    2 relevent children 16%
    one would cancel out the other and be nil assessed...err doubt that!!

    Would it be flat rate of £7 then and the variations for qualifying childrens stays.

    Please help.


    (1) Subject to sub-paragraph (2), 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.”
  • marksoton
    marksoton Posts: 17,516 Forumite
    plinky1 wrote: »
    The new scheme is going to be coming in 2011.
    Have read loads of views, articles and even the white paper, but still do not understand how a certain calculation will be made.

    Can anyone help?

    2 qualifying children 16%
    &
    2 relevent children this is where I get confused...
    There is no mention of what percentage they use for the relevent children.

    They mention basic rate, but dont give the basice rate details???

    They way I read the white paper was
    2 qualifying children 16%
    2 relevent children 16%
    one would cancel out the other and be nil assessed...err doubt that!!

    Would it be flat rate of £7 then and the variations for qualifying childrens stays.

    Please help.

    The two relevant children would reduce the assessable income for the qualifying children down to 84%.

    So the NRP would pay 16% of 84% of what he earns !
  • plinky1
    plinky1 Posts: 34 Forumite
    Ahhh so when it said 16% it was wrong?

    Thank you for your reply..I have been looking and looking, thing is though how can they disregard the PWC benefits, but not disregard the NRPs living costs i.e. rent & council tax?

    As PWC who is on benefits and do not own their own homes get free rent and council tax also!!

    So the two other relevent children are only able to live on 4% is this what they are saying??
  • i_hate_the_csa
    i_hate_the_csa Posts: 132 Forumite
    I'm still waiting to be put onto the "new" system.Still have the letter from 2003 saying we'd all be moved to it in time.

    Will this "gross" system be working in 2011 for us paying now? No chance!
  • plinky1
    plinky1 Posts: 34 Forumite
    i_hate_the_csa wrote: »
    I'm still waiting to be put onto the "new" system.Still have the letter from 2003 saying we'd all be moved to it in time.

    Will this "gross" system be working in 2011 for us paying now? No chance!

    You bet your boots they will!!!

    They are assesing on your GROSS income in 2011, that means no Nat or tax taken into consideration never mind your housing costs and council tax that they dont consider anyway.

    They are major Nosebleeds!!!
  • joanneg_2
    joanneg_2 Posts: 60 Forumite
    God Lord!!!!

    Have I got this right then .....

    Gross :576 per week

    minus 16% for our 2 kids = 483.84

    12% of that is 58.06 per week! Yet our children are only allowed 46.08 and they are babies.

    Currently pay 22 ish a week under scheme 1.

    Absolutely ridiculous .. hopefully SD (who is 16 in sept) won't still be a QC then.

    God helps us all.
  • Blue_Horizon
    Blue_Horizon Posts: 137 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Are pensions treated in the same way? Taken off the gross income?
  • Donedoingdebt
    Donedoingdebt Posts: 1,196 Forumite
    First Anniversary Combo Breaker Debt-free and Proud!
    Blue_Horizon wrote: »
    Are pensions treated in the same way? Taken off the gross income?
    I don't believe any pension payments will be given as an allowance & the total gross income will be included for assessment.

    One of the reasons given for going to CS3/CMEC was that a small number of NRPs were loading up their pension payments so there was very little net pay left to make a reasonable assessment.
    Donedoingdebt Lightbulb moment January 2000. Debt at highest approx £102,000. Debt now (October 2009 - absolutely fork all!!!):beer:
    CSA case closed on 02/09/10 :beer::beer:
  • marksoton
    marksoton Posts: 17,516 Forumite
    Donedoingdebt wrote: »
    I don't believe any pension payments will be given as an allowance & the total gross income will be included for assessment.

    One of the reasons given for going to CS3/CMEC was that a small number of NRPs were loading up their pension payments so there was very little net pay left to make a reasonable assessment.

    Which is BS because the PWC could easily have gone for diversion of income.

    The irony is i only keep my pension for the life assurance it would give my daughter in event of my death.

    When they start including it in the assessment i might just stop paying in, it simply won't be worth it.

    And the government keep telling us we should be saving for our future. :rolleyes::rotfl:
  • Blue_Horizon
    Blue_Horizon Posts: 137 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    I've just done a quick calc and I would end up paying almost twice what I am paying at the moment. Thankfully I should be well clear of the CSA by the end of next summer. This is going to really cripple most financially.
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