Use of Tax Credits as NRPs income?

mitchaa

13Kent wrote: »

Our PWC is deemed to have nil income (despite both her and her husband working in good jobs) because they get WTC - it is deemed by the CSA to be a benefit, therefore she is on benefits and therefore has no income. Our tax credits (and child benefit) are added up as being part of our total income, and our assessment is worked out based on this income.

That doesn't make sense.

How can both of them have good jobs but yet claim WTC? WTC are for the poorly paid, they top up wages to a reasonable level. Anyone claiming WTC does not have a good job, it's minimum wage typed.

I also do not get this no income, if she is working, she is working and has an income.

mitchaa

I do not see why a NRP's child related benefit with his/her new partner should ever be taken into account for CSA calculations. Frankly, I think it is appalling. How can they justify taking a portion of a childs benefit to pay for the upkeep of another child?

Surely it would just be a case of having the child benefit/tax credits paid into the account of the non resident parents partner, that way, they would not be able to touch it.

13Kent

I also do not get this no income, if she is working, she is working and has an income.[/QUOTE]


We disputed this with the CSA, even telling them where she worked, but they just kept repeating that as she gets WTC (I belive you can earn a significant amount and still get paid this - albeit a token amount) it is a benefit, and if she is on a benefit then she has nil income.

shell_542

mitchaa wrote: »

That doesn't make sense.

How can both of them have good jobs but yet claim WTC? WTC are for the poorly paid, they top up wages to a reasonable level. Anyone claiming WTC does not have a good job, it's minimum wage typed.

I also do not get this no income, if she is working, she is working and has an income.

The childcare element of working tax credit can be paid up to quite a high combined income of a claimant. This will flag up on the CSAs system as working tax credit.

mitchaa wrote: »

I do not see why a NRP's child related benefit with his/her new partner should ever be taken into account for CSA calculations. Frankly, I think it is appalling. How can they justify taking a portion of a childs benefit to pay for the upkeep of another child?

Surely it would just be a case of having the child benefit/tax credits paid into the account of the non resident parents partner, that way, they would not be able to touch it.

Although the tax credits are paid into a partners account, they are still classed ad a JOINT claim as both the NRP and their partner have to claim together if living together. That's how they used to justify it.

I look forward to hearing the reply the poster who has written to them, gets. Keep us informed please.

bdt1

On CS2, I believe that CTC are used as NRP income, but on CS1, CTC are not used as part of NRP income, WTC on CS1 can be used if NRP is highest wage earner in household.

Often PWC receive WTC and therefore have no income for CSA purposes

jeanettethree

bdt1 wrote: »

On CS2, I believe that CTC are used as NRP income, but on CS1, CTC are not used as part of NRP income, WTC on CS1 can be used if NRP is highest wage earner in household.

Often PWC receive WTC and therefore have no income for CSA purposes

Well we are on CSA1 and we are NRP & NRPP and my childrens CTC gets taken into account as our income .... we dont get WTC as we earn over the threshold, to be honest I think the caseworkers make up what rules they like ... I have been told so many different things by caseworkers I dont know whats right or wrong anymore... Its a pity the goverment dont have it all in black and white so at least we know what is right and wrong ?

JulietAmber_2

My partner has just been assessed as we have moved in together and his ex has decided to scrap their old private arrangement and go through the CSA. I have 3 children that live with us and he has 3 children with her. The CSA have taken his wages plus our joint working and child tax credits as his total earnings. His ex was very crafty. She suddenly stopped his children staying with us overnight (she picks them up at 10pm and returns them in the morning) and now gets a huge amount of maintenance from us. We are now struggling financially and the fact that she lives with her partner who owns a successful business is completely overlooked by the CSA.
Any advice would be appreciated.

shell_542

Unfortunately, stopping overnights is a way of increasing maintenance and there is very little that can be done about it ... unless your partner has a contact order from the court, which specifies the children stay at certain times, including overnights. Only then, would her insisting they go home and bringing them back in the morning be a breach of the court order.

karenx

JulietAmber wrote: »

We are now struggling financially and the fact that she lives with her partner who owns a successful business is completely overlooked by the CSA.
Any advice would be appreciated.

It doesnt matter whether they live in a council house or a castle, it makes no bearing on the maintenance you have to pay

bdt1

jeanettethree wrote: »

Well we are on CSA1 and we are NRP & NRPP and my childrens CTC gets taken into account as our income .... we dont get WTC as we earn over the threshold, to be honest I think the caseworkers make up what rules they like ... I have been told so many different things by caseworkers I dont know whats right or wrong anymore... Its a pity the goverment dont have it all in black and white so at least we know what is right and wrong ?

Jeanette

You need to appeal this assessment, it is not legally correct, on CS1, CTC cannot legally be used as assessable income, but WTC can be if the NRP is highest earner in houshold