csa- my business car allowance is income?

dodger_121

Can anyone help me. My wife is claiming for child support for my children, I have no problem with paying 25%. However, I am paid a car allowance which I pay tax on monthly to fund a business needs car . The csa have taken this 5500 pound per year as an income and want 25% of it as they class it as an income. I now have a dilemma as i cant afford to run a car for business n ow....Can any one advise me on my appeal with the csa?

kelloggs36

If it is taxed, then it is classed as income I'm afraid and therefore must be counted.

nearlyrich

Yes it's true I had to pay full student tuition fees for 2 based on my taxable income which includes a company car essential to doing my job.

MJMum

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frankie1star

My ex went to tribunal last year and the Chairman refused to allow his car and petrol as income, together with his purchase of a caravan that he claimed he lived in, that the company paid for...

kelloggs36

It depends on how it is presented - the legislation clearly states that if it is taxable then it must be counted as income.

frankie1star

my ex quoted some case and that was taken into consideration

exil

Employer could supply you with a company car instead and you then pay tax on the benefit (but this is a notional benefit and thus wouldn't count for CSA purposes). Would have to work out yourself whether you are better off this way.

Or, employer can pay mileage, which is untaxed up to the HMRC limits of 40p/25p a mile. Again this wouldn't IMO count for CSA.

kelloggs36

Yes, that is right. If you have expenses which are reimbursed as untaxed then this is not counted as income for CSA purposes.

MonkeySaving?

dodger_121 wrote: »

Can anyone help me. My wife is claiming for child support for my children, I have no problem with paying 25%. However, I am paid a car allowance which I pay tax on monthly to fund a business needs car . The csa have taken this 5500 pound per year as an income and want 25% of it as they class it as an income. I now have a dilemma as i cant afford to run a car for business n ow....Can any one advise me on my appeal with the csa?

Rubbish, even if you are taking account of tax and the 25% of the amount for the CSA you're still getting around £200 a month car allowance to fund your car, thats more than enough for a basic car on a PCP. Here's a plan, get rid of the BMW or whatever it is you drive and buy a more sensible car, what's more important, your kids or your car? Also you can claim 40p per mile back for business mileage anyway so unless you have a fuel card you're going to be quids in.

MonkeySaving?

kelloggs36 wrote: »

It depends on how it is presented - the legislation clearly states that if it is taxable then it must be counted as income.

That is correct, in general car allowances are added as a salary benefit and are therefore taxed and count towards total salary, therefore the CSA will take the cumulative amount into consideration.