CSA Payment £1200 a month?!!!!

jidi19

So far he has not provided any information to the CSA it was obtained elsewhere. The contact he has had with them has so far been unhelpful, so much so all he got was 'pay or we'll arrest you and we have the power to send baliffs to your house'

speedster

first things first. he needs to write to them regarding the dispute parentage and request a DNA test. if his ex refuses to comply then the csa have NO case against him.

you'll have to pay for the test and it will be reimbursed to you if it comes back negative.

he also needs to give them profit and loss statement for SE as they can work out what he SHOULD be paying after expenses etc. it sounds as if they've done their usual and just plucked a figure out of the air.

PreludeForTimeFeelers

speedster wrote: »

he also needs to give them profit and loss statement for SE as they can work out what he SHOULD be paying after expenses etc. it sounds as if they've done their usual and just plucked a figure out of the air.

Actually Speedster, from the original post; "My OH is a self employed businessman and the CSA have based the payments due on the annual profit of the business (Not techinically his wage - wish it was!!) " - it sounds as though they've went directly to HMRC, who have provided the business profit from last year.

If it is within 30 days of the maintenance calculation letter then you can dispute the calculation - get your partner to provide the most up-to-date profit/loss info for the past few months, and they should be able to revise the calculation. Make sure that the calculation is taking into account the two children under 16 (I have assumed that they live with yourself and your partner?).

speedster

oh yeah, cos the csa don't make mistakes like that do they?

if profit isn't as high as the csa reckon, then clearly they have ballsed up the assessment.

you don't have to do it within 30 days either. both sides can apply for re-assessment anytime they like and the csa are legally bound to oblige.

missbunbury

Assuming he is a sole trader, if he didn't supply any info, the CSA will most likely have got his declared profit figure for 09/10 off the Inland Revenue. If he is a sole trader, then all the profit is his and as such is classed as his income.

If he's a LTD company and the CSA aren't aware of this, they have probably based the calculation on average earnings. I doubt this though as the company would show as his employer on an HMRC trace and they would have sent letters to the company which he would be aware of.

Bear in mind that if you as a family are getting tax credits, these may have been included in the assessable income.

It sounds to me as if the OP's husband has tried to bury his head in the sand, and has failed to provide any info to the CSA about his household, overnight care, his income etc. The £1200pcm figure therefore may or may not be right, but as someone else has said you only have one month from the date of the calculation (probably the date on the letter saying three hundred quid a week) to have it changed, if you leave it longer they can change it but not backdate the change.

We need more info about actual income before anyone can help the OP with whether or not the figures are right.

jidi19

Thanks for your reply but the OPs husband has not tried to bury his head in the sand with regards to this matter, far from it so again thank you for your input but I'd prefer you not to make assumptions about my husband.

missbunbury

jidi19 wrote: »

Thanks for your reply but the OPs husband has not tried to bury his head in the sand with regards to this matter, far from it so again thank you for your input but I'd prefer you not to make assumptions about my husband.

The CSA should have written to tell you the case had been opened and requesting up-to-date income information. If they didn't get a response they will have done the calculation without his input. It will have been a new claim, if what you say about the previous arrangement being private is correct, so he will have had a maintenance enquiry form to fill in. This was his chance to dispute paternity, he's likely missed this chance now so DNA would have to be done privately.

You still haven't provided enough info for us to tell whether the calculation is right or not - if it's right, and the effective dates are right, then there's not a great deal to be done about it. If they've used average income figures, then as I've already said there is a small window of opportunity to provide the correct figures and have the new calculation backdated.

Goldie-K15

Just to clarify.

If you are self employed - your earnings are, net 'Taxable' profit (this is not necessarily profits per accounts) less tax / NIC payable less whatever is paid into pension fund as self employed contributions.

If he is incorporated, then the profits are irrelevant, these monies are not his, they are the companies. The money only becomes his when paid as a salary and/or dividend. Also not that according to the CSA, dividend income is not treated as income for purposes of calculating CSA payments. As you are probably aware dividends are paid on shares (ie investment income), they cannot use investment income to calculate your CSA payment. Any doubt reagrding this then visit their own website whereby it states what CSA is payable on.

If they change the rules regarding the above, he can always transfer shares to yourself to mitigate his income anyway.

speedster

Goldie-K15 wrote: »

Just to clarify.

If you are self employed - your earnings are, net 'Taxable' profit (this is not necessarily profits per accounts) less tax / NIC payable less whatever is paid into pension fund as self employed contributions.

If he is incorporated, then the profits are irrelevant, these monies are not his, they are the companies. The money only becomes his when paid as a salary and/or dividend. Also not that according to the CSA, dividend income is not treated as income for purposes of calculating CSA payments. As you are probably aware dividends are paid on shares (ie investment income), they cannot use investment income to calculate your CSA payment. Any doubt reagrding this then visit their own website whereby it states what CSA is payable on.

If they change the rules regarding the above, he can always transfer shares to yourself to mitigate his income anyway.

er. wrong, wrong and errrr..... wrong.

firstly. dividends WILL be included if pwc requests it.

secondly, if the company is in the NRP's name than all profit can be classed as income.

thirdly, transferring share into partners name is blatantly deprivation of income and would show up with a simple companies house check.

please refrian from giving false and dangerous advice on here. leave that to the hens.....;)

Rikki

Why did he stop making the payments when the child turned seventeen? Payments normally continue till a child levels full time education any time after sixteen up to eighteen.

Hope you get it sorted out without too much worry.