ex PWC now working

OliveOil71

We are on the old system. Can anyone tell us if the PWC is now working full time, would that change our payments? Also we are due our first baby does this change things?

kelloggs36

yes it could well do - provided she doesn't get working tax credits. Your child should also make a difference.

LizzieS_2

It also depends on the changes to your income since your last assessment - it could end up you paying either less or more.

OliveOil71

Thanks
What kind of a difference does our child make? Is it worked out as a percentage i.e do they take say 5% off our income?

If the PWC informs the CSA of their change of circumstances i.e now working (as they should) will a full reassessment be required by all parties?

Yes we had our last assessment 2 years ago so a couple of pay rises which we might end up paying more knowing our luck. I will however not be working for the next year, on mat leave, and plan to go back part-time so that should make a difference.

Donedoingdebt

OliveOil71 wrote: »

Thanks
What kind of a difference does our child make? Is it worked out as a percentage i.e do they take say 5% off our income?

If the PWC informs the CSA of their change of circumstances i.e now working (as they should) will a full reassessment be required by all parties?

Yes we had our last assessment 2 years ago so a couple of pay rises which we might end up paying more knowing our luck. I will however not be working for the next year, on mat leave, and plan to go back part-time so that should make a difference.

1/ I believe, even on the old system (CS1), you should receive a 15% allowance off your net assessable income.
Example: Net monthly income - £1000
15% allowance - £150
Assessable amount - £850

2/ They may well carry out a full reassessment as it's been 2 years since your last one.

3/ If you're already on mat. leave, then the assessment should be based solely on your partner's net wage, which is normal, but they will also only have his wage to base the household income on after his assessment to check there's enough money for you both to live on.

If you're not yet on mat. leave, then your wage will be taken into account for that last part of the assessment & you'll have to notify them again when your circumstances change.

meds12_2

"3/ If you're already on mat. leave, then the assessment should be based solely on your partner's net wage, which is normal, but they will also only have his wage to base the household income on after his assessment to check there's enough money for you both to live on"

That didn't happen when I was on maternity leave 3yrs ago (old system)- I had my £106 per week maternity pay taken into accout so my other half only had to pay half of the essential household costs (thus freeing up more of his income for maintenance). Since then I have obviously gone back to work, however we have never been asked for a reassessment, and we have never asked.

I'm pretty sure you are not obliged to tell the CSA is your income has increased through payrises - and especially so if you are NRPP.

kelloggs36

That is not right on CS1 - the allowance offset against net income is fixed to the same as income support rates for a child (currently about £55 ish per week per child, plus family premium of £17.30 per week). If partner works, then the income is used to determine whether the NRP gets all this allowance, or just half of it. If just half of it, then the actual amount difference to the assessment will not be very much at all. Maternity pay is fully counted as income for the NRPP and so will be used in the protected income part of the calculation.

meds12_2

yes, that's it - as I was getting £106 per week maternity pay my other half was only given half of the "essentials" allowances or classed as single(total child allowance = half what was required for PWC (£22.79 (us) vs £45.58 (pwc)), personal allowance = exactly the same as PWC carer's allowance (57.45), so none allowed for myself, premiums = £8.13 vs £16.25 for PWC. I can only see that this difference was presumed to be paid for by maternity pay? - I cannot see how my income was protected here? Although I have to say the pages of CS1 calculations we have make very little sense!

kelloggs36

CS1 is based like this:

NRP net income less:
Personal allowance (£64.50 currently)
Housing costs (both interest and capital, or rent)
Child allowance per child (either 100% or 50% if the NRPP earns enough to be able to contribute towards support their own children - this is NOT given for step children).
Family premium if children are in family (again, not if step children and again either 100% or 50%).
Any disabled child premiums
Travel to work costs over and above 150 miles per week AS THE CROW FLIES, at 10p per mile over the 150 miles.

Deduct these from the net income of the NRP and what is left is halved. If PWC does not work or gets WTC, then this half is compared to the Maintenance Needed (based on ages of children).

If what he has left is less than the maintenance needed, then this becomes the notional assessment but if he has more left after the maintenance needed, a second calculation is done for Additional Element (basically a % of what is left is added on).

Can he actually afford it? This is where the protected income calculation comes in. Add up ALL income of the NRP family (NRPP wages, child benefit, tax credtis, maintenance from NRPP ex - but only if it is NOT paid via CSA, otherwise it is ignored).

Deduct the couple rate for income support, child rates in full - even for step children, family premium, council tax, INTEREST ONLY for a mortgage or rent. Travel to work etc. Then take off an extra £30 per week. What is left, calculate 15%, and this is what is added on to that figure already added up. This is the protected income.

If the notional amount is deducted from the net income leaves them with the protected figure or more, NRP pays in full, if it leaves NRP with less, NRP pays the amount which will leave them with the protected income figure.

Departures I will come into later - have to go to work!!

kelloggs36

Also, multiple cases are more complex.

meds12_2

My God Kelloggs - you are a machine! Thanks for that information, I have tried very hard to understand it! Quick question - is the NRP assumed to pay 100% of mortgage / rent? I thought it was calculated on proportions (eg if I, as NRPP earn 30% of total household income I am liable for 1/3 mortgage?). Sorry to OP, I feel like I've hijacked this thread! CS1 is all so complicated, no wonder they changed to a straight percentage system. Why on earth do they not just transfer everyone over!? Surely it's much more easy to calculate 15/20/25% than it is to do a full CS1 reassessment?