Advice please for an NRP with arrears and nil assessment.

anondad

Hi. I have a 10 year old son I have been forcibly estranged from for most of his life due to his mother hating my guts and being spiteful. That's obviously all irrelevant in regards to support, but it sticks in my throat a little when the CSA talk down to me...

I am currently a full time student who is not in employment and have a nil assessment. Prior to that I was paying an amount voluntarily directly to the PWC, payments that the CSA weren't aware of (my bad, I know... I'm sure I told the CSA about it but apparently not). I belive I am on CS1.

Anyway, due to a period of time where I was quite depressed about things and buried my head in the sand I have been presented with arrears of £6K (reduced from £10K after appeal). I have now been summonsed to court as they want to obtain a liability order.

Now, I have a new child with my new partner, less than a year old. My partner works part time and is in receipt of working/child tax credits. She will soon leave work to herself become a full time student. Thereafter, I will work part time and claim working/child tax credits. Once I graduate I don't anticipate working any more than the bare minimum to qualify for tax credits until my partner also graduates. We have high monthly outgoings and just about manage to keep our heads above water. There is no surplus cash each month (we are both very hapy though, who needs money!). The CSA do not know anything about the new child or partner.

Where do I stand? I haven't gone out of my way to pull the wool over the CSA's eyes at any point, I've just never gone out of my way to furnish them with information. I do my level best to not have anything to do with them if I'm honest, it's difficult to constantly have the past raked up. How should I present my case at the hearing re liability order? I intend to bring evidence of our incoming/outgoing finances, declare new child etc. Is this likely to have a bearing in the hearings outcome?

Cheers

blimey40

Sorry to say, the liability order will still be sanctioned by the courts. You may get a CSA rep call you to one side before you go in, don't do it, however nice they may seem towards you.

Best hope is to agree a payment strcuture to pay back the arrears. the CSa will steer towards a 2 year pay-back, but by brining your current financial detials with you, the court magistrates may give you more time than the 2 years.

anondad

Ok, thanks for that.

I suppose a greater concern than the liability order is whether there will be an impact on our tax credits? Like I said, our income is low, we earn next to nothing and rely on the tax credits to cover our bills. I've read conflicting information online about what and when the CSA can take in regards to these benefits.

shell_542

anondad wrote: »

Ok, thanks for that.

I suppose a greater concern than the liability order is whether there will be an impact on our tax credits? Like I said, our income is low, we earn next to nothing and rely on the tax credits to cover our bills. I've read conflicting information online about what and when the CSA can take in regards to these benefits.

CSA do take Child Tax Credits and Working Tax Credits into account as income. If you and your partner are living together the tax credits award will be in joint names. They include all Child Tax Credits for the purpose of the calculation and then with the Working Tax Credit, it is explained on their website ...

We count Working Tax Credit as income if the non-resident parent’s earnings are higher than their partner’s earnings. If the non-resident parent and their partner’s earnings are the same, we include half of the Working Tax Credit in the child maintenance calculation. We don’t count Working Tax Credit as income if the non-resident parent earns less than their partner.

So at the moment as your partner is working and you are not, they will not include the Working Tax Credits you both receive. Once your partner gives up work and you go to work, they will then start to include it.

I don't agree with tax credits being included so, sorry to say that is what they do.

anondad

Cheers. OK, may I ask for clarification on a point? I have read, at several sources, that under CS1 tax credits are protected income (does this mean not used in assessment?) whereas under CS2 they are fair game and income. Is this correct? If so, being on CS1, will tax credits be immune, regardless of who is the worker out of us?