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CSA Gross Income CM Scheme questions.
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# 1
plinky1
Old 06-07-2009, 7:07 PM
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Default CSA Gross Income CM Scheme questions.

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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# 2
CMAC
Old 06-07-2009, 7:19 PM
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Quote:
Originally Posted by plinky1 View Post
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.”
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# 3
marksoton
Old 06-07-2009, 7:21 PM
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Quote:
Originally Posted by plinky1 View Post
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 !
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# 4
plinky1
Old 06-07-2009, 7:25 PM
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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??
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# 5
i_hate_the_csa
Old 08-07-2009, 1:46 PM
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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!
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# 6
plinky1
Old 08-07-2009, 2:01 PM
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Quote:
Originally Posted by i_hate_the_csa View Post
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!!!
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# 7
joanneg
Old 14-07-2009, 11:59 PM
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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.
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# 8
Blue_Horizon
Old 15-07-2009, 6:48 AM
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Are pensions treated in the same way? Taken off the gross income?
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# 9
Donedoingdebt
Old 15-07-2009, 10:44 AM
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Quote:
Originally Posted by Blue_Horizon View Post
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!!!)
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# 10
marksoton
Old 15-07-2009, 10:57 AM
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Quote:
Originally Posted by Donedoingdebt View Post
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:
There's a good reason why the words muppet and puppet are so similar...
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# 11
Blue_Horizon
Old 15-07-2009, 10:35 PM
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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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# 12
i_hate_the_csa
Old 16-07-2009, 6:27 AM
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"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"

And CSA1 aint already doing this????
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# 13
Blue_Horizon
Old 16-07-2009, 7:38 AM
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Quote:
Originally Posted by i_hate_the_csa View Post
"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"

And CSA1 aint already doing this????
Point taken
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# 14
kelloggs36
Old 16-07-2009, 7:52 AM
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Quote:
Originally Posted by marksoton View Post
Which is BS because the PWC could easily have gone for diversion of income. It is however quite difficult to prove as the motive for reducing CSA has to be proven even if it isn't the primary reason for the NRP decision. Also, it takes an absolute age!

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:
.................................................. ............
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# 15
billius
Old 12-11-2010, 12:08 AM
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I presume they will also take into account CTC and WTC???
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# 16
mum24boys
Old 12-11-2010, 11:58 AM
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Hi Everyone, On NASCAR website they have the formula for the calculation.
Pensions are an allowable expense but there is a cap on the amount you can pay into closing the loophole of diverting income. I have not read anywhere that WTC and CTC are taken into account. With the new cuts coming less people are going to be entitled to tax credits anyway. We will certainly lose ours in 2012 when the limit comes down to £30K. Our calculation came back at £3 less than we pay now.
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# 17
lynn45
Old 12-11-2010, 1:28 PM
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Having problems finding the white paper for new CMEC regulations- anyone know where i can find this???

I've read that the CSA office in shrewsbury is to close due to a fall in new applications for CM since 2008- think this was when PWC who's on benefits could choose whether or not to go through CSA/CMEC. Seems like a lot are opting out.
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# 18
sarflee
Old 12-11-2010, 2:14 PM
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Quote:
Originally Posted by mum24boys View Post
Hi Everyone, On NASCAR website they have the formula for the calculation.
Pensions are an allowable expense but there is a cap on the amount you can pay into closing the loophole of diverting income. I have not read anywhere that WTC and CTC are taken into account. With the new cuts coming less people are going to be entitled to tax credits anyway. We will certainly lose ours in 2012 when the limit comes down to £30K. Our calculation came back at £3 less than we pay now.
It's not often posts make me smile on here but the thought of an American stock car racing site having a CSA formula made me smile! Thank you mum24boys!!
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# 19
shell_542
Old 12-11-2010, 3:44 PM
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Quote:
Originally Posted by mum24boys View Post
Hi Everyone, On NASCAR website they have the formula for the calculation.
Pensions are an allowable expense but there is a cap on the amount you can pay into closing the loophole of diverting income. I have not read anywhere that WTC and CTC are taken into account. With the new cuts coming less people are going to be entitled to tax credits anyway. We will certainly lose ours in 2012 when the limit comes down to £30K. Our calculation came back at £3 less than we pay now.
Whereas my husband would pay £3 more a month.
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# 20
surreybased
Old 12-11-2010, 4:50 PM
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Just wondering where we can go to work out new calculations. It's worrying for us as we really don't have the disposable income to pay anymore.
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