Car Allowance instead of Company Car - CSA Assessment

withabix

Despite me paying an agreed amount (determined by ex-OH's old Solicitor at CSA2 level) for the last 7 years, increased by the same percentage as my pay increases each year and when I've changed job, my ex-OH has recently stopped talking to me and out of the blue she has now filed a CSA claim and the paperwork came in the post this week.

I think she's probably going to end up with an assessment that means I will pay LESS, however I've got a query that I hope someone who knows the answer can clear up, as I've had two DIFFERENT answers from the CSA:

I currently take a cash allowance instead of a company car, because of the tax relief that comes with it (meaning that I actually pay me ex MORE than she would otherwise get) and so that I can choose what I drive.

Will the CSA count this car allowance as salary/income? ie am I going to have to revert to a company car (which they don't take into account) to minimise the amount the CSA assess and make me pay?

The crazy situation is, because I get tax relief on mileage for running my own car and get penalised by paying more tax by running a company car, I reckon my ex-OH will end up getting around £600 per year LESS if I go back to a company car, if the CSA take the car allowance money into account when determining my liability.

I've read on a few sites that case law has recently resulted in CSA taking PART of the car allowance into account, proportionate to business and work mileage.

Does anyone know the correct answer???

evie451

Withabix this is really interesting! I suppose all the (so called) benefits received are given a cash value by the Revenue so...?

I know that my car benefit is 3.5k and the tax credits people regard it as income for the purposes of calculating the tax credits...I suppose also some NRP's could use the taxable benefits to reduce their income? so the CSA might be able to take it into account. i am sure someone more knowledgable with be along soon.

I have to ask though is your PWC mad? have a look around some of the posts here the CSA is the last flippin resort! :rolleyes: so she has a nice NRP who is paying his maintenance and she phones up the CSA to open a claim :eek: i'll swap her any day if she feels hard done by!!:D

withabix

A company car is DEFINITELY excluded from the CSA assessment, so, assuming the CSA include my car allowance in the assessment, if I was feeling as malicious as my ex-wife clearly is, then I should give my employer the 2 months' notice they require for me to revert to a company car, take the accompanying tax code hit that I would get and metaphorically show my ex-wife the middle finger, by getting a considerably lower assessment.

...and it would be all her fault!

dimbo61

The new !!! system coming in next year ( if ever ) is going to be 12% of your gross income so will not take into account tax, NI, pension, company car,salary sacrifice,company shares etc

withabix

Any link to the info about CMEC payment levels?

Sensemaya

withabix

Please stop worrying. She is digging her own grave. Advice from another PWC that wishes she could come to a private agreement. As previously suggested get her to come on here.

She should stop feeling greedy and and thank her lucky stars she has a nice ex who pays her regularly without any hassle.

C- Mess is not going to change anything. As you know there are still people stuck on CS1 and it ain't going to change. People will be stuck on CS2 for years too once C- Mess is implemented.

Things ain't going to change...

She is being particularly STUPID if she is under the impression that she is in for a significant change of maintenance because of C- Mess.Offer her another fiver per week to shut her up.

Sensemaya

withabix wrote: »

Any link to the info about CMEC payment levels?

As you have probably read my ' desperate' posting about where the hell has the enforcement guide gone via csa website, you are being EXTREMELY optimistic about the C- Mess calculator.

Chill out and relax...the govt will botch it up.

withabix

Reading the CSA form I've been sent (CSF002), it appears I'm supposed to phone them up with all the info, rather than fill the form in, unless 'I am not able to contact them by phone'.

Which method should I use? ie which will [strike]result in the most delay[/strike] be the best method from my point of view?

Interestingly, they also want me to fill in an enclosed Direct Debit form.....no f****ng chance!! Anyway, how do I do that by phone? :rolleyes:

Sensemaya

withabix wrote: »

Reading the CSA form I've been sent (CSF002), it appears I'm supposed to phone them up with all the info, rather than fill the form in, unless 'I am not able to contact them by phone'.

Which method should I use? ie which will [strike]result in the most delay[/strike] be the best method from my point of view?

Interestingly, they also want me to fill in an enclosed Direct Debit form.....no f****ng chance!! Anyway, how do I do that by phone? :rolleyes:

"no f****ng chance!!" Totally agree. But don't think about delay. They are not going to go away.

Don't phone them. Go through MP please. Tell the MP due to the history of CSA problems you don't trust them and want a paper trail about this issue, so you want everything to go via MP. That should p*iss the MP off, but who cares? Suggest a standing order.

What erks me is that you don't know how much you have to pay.

Having contributed to the H report, I still don't know why they haven't implemented my suggestion of a "bank statement"...in credit/ overdrawn et al . Perhaps it is too easy as these morons live in a ivory tower.

Treat yourself as a test case, please. Be careful and don't be hesitant enough to put in for compo when they !!!! up. They will...and you have a paper trail...Enjoy!

It will be a shambles. Get your ex to call them off pronto.

Do you have the option of making a private agreement?

withabix

We had a private agreement (at CSA2 level less 1/7 for overnights) and it has worked for nearly 7 years. We are however not currently talking as we fell out about my concerns about my children's welfare, due to her inadequate parenting. I won't go into detail here, but you mothers reading this would be horrified.

My net income is complicated as I recover business mileage tax relief through my tax code (as it is broadly similar every year) rather than claiming a tax rebate and this will undoubtedly lead the CSA to miscalculate the amount payable, as the tax relief provides HMRC-allowable recovery of expenses - such things are not subject to CSA inclusion.

What I should do is revert to the basic rate tax code and recover my tax rebate annually, removing it from the CSA's consideration.

Also, the CSA will probably take my full car allowance into account - I will obviously have to appeal this, which presumably will take ages.

Hence I feel as though as should go back to a company car, take the income tax hit and sod the ex.

My MP is a labour kn*b of the too-left-wing variety and is well known to be pro-PWC, so I wouldn't get a fair shot.

Sensemaya

[quote=withabix;15183607 but you mothers reading this would be horrified

Eh? Not at all. I understand what you are saying below
My net income is complicated as I recover business mileage tax relief through my tax code (as it is broadly similar every year) rather than claiming a tax rebate and this will undoubtedly lead the CSA to miscalculate the amount payable, as the tax relief provides HMRC-allowable recovery of expenses - such things are not subject to CSA inclusion.

What I should do is revert to the basic rate tax code and recover my tax rebate annually, removing it from the CSA's consideration.

Also, the CSA will probably take my full car allowance into account - I will obviously have to appeal this, which presumably will take ages.

Hence I feel as though as should go back to a company car, take the income tax hit and sod the ex.

My MP is a labour kn*b of the too-left-wing variety and is well known to be pro-PWC, so I wouldn't get a fair shot.[/quote]

I suspect you have had a massive row in the past few months and she THINKS ( having no experience of the CSA previously ) she is going to screw you...sorry...metaphorically speaking...good and proper with the CSA ... She is mistaken.

You are in a game..start playing it. She thinks she holds all the cards. You hold back...I'm playing this game with something nothing to do with the CSA...they are going to lose... I haven't played anything yet...not even a pawn...but when I play...

You are in the same position...bide your time.