CSA and Childcare vouchers

Lannie44

My husband currently pays 25% salary direct to his ex for their 3 kids. We have 2 of our own and are looking to take out childcare vouchers for the eldest's nursery fees. If my husband takes them out will he pay more/less/the same child support if his net income goes down? I've read it could be more as the vouchers aren't considred and he'll be paying less tax and NI - is this the case?

DX2

Child Support Agency (CSA) payments are calculated using your take home salary. As your take home salary will increase under BenefitsPlus Childcare Vouchers, it follows that there may be an increase in the amount of CSA payments. However, we understand that you are only required to inform the CSA if your take home pay increases by 5% or more. Further advice can be found at http://www.csa.gov.uk

Lannie44

thanks - surely his take home salary would decrease with £200 being in 'voucher' form? His payments went up vey recently as he crossed the 5% threshold. There doesn't seem to be any info regarding childcare vouchers on the CSA website...

LizzieS_2

I cannot give you the links and have no idea if things have since changed - from previous discussion (elsewhere) I do recall people providing proof that vouchers are taken off income before CS is calculated.

Lannie44

Thanks, I think i'll just have to call the person at work who deals with the vouchers and see if she knows - or the csa. Thanks.

Caz3121

If your case is under CSA2 then your husband should be paying 20% to ex not 25% as there would be a deduction for your children
eg if earns £1000 per month
deduct 20% for 2 children leaves £800
25% of £800 for the 3 children with ex is £200 (20% of income)

Donedoingdebt

Perhaps I've missed something here, but where does this requirement to inform the CSA of a wage increase of more than 5% come from?

As far as I'm aware, you only have to notify them of a change of address & a change of job if you're paying by DEO. You do not have to voluntarily notify them of any wage increase /decrease.

You will have to provide all this information if they contact you due to a reassessment / revision or a change of circumstances.

Lannie44

"If your case is under CSA2 then your husband should be paying 20% to ex not 25% as there would be a deduction for your children"
-
I think he gets the first 15/20% 'free' then 25% on the rest

With regards to the 5% - I think this came about when we had our first child, the CSA re-assesed to decrease his payments, then again when the second was born it actually went up cos he had crossed the 5% increase. They told him every 5% would result in an increase. He contacts them every now and again after payrises so he doesn't end up having to owe her loads of arrears.