CSA and WTC

HoneyNutLoop

Net weekly income
SCHEDULE NET WEEKLY INCOME PART I
GENERAL
1. Net weekly income means the aggregate of the net weekly income of the non- resident parent provided for in this Schedule.
[...]
PART IV TAX CREDITS
Working tax credit
11.—(1) Subject to sub-paragraph (2), payments by way of working tax credit, shall be treated as the income of the non-resident parent where he has qualified for them by his engagement in, and normal engagement in, remunerative work, at the rate payable at the effective date.
(2) Where working tax credit is payable and the amount which is payable has been calculated by reference to the earnings of the non-resident parent and another person–
(a) where during the period which is used by the Inland Revenue to calculate his income the earnings of that parent exceed those of the other person, the amount payable by way of working tax credit shall be treated as the income of that parent;
(b) where during that period the earnings of that parent equal those of the other person, half of the amount payable by way of working tax credit shall be treated as the income of that parent; and
(c) where during that period the earnings of that parent are less than those of that other person, the amount payable by way of working tax credit shall not be treated as the income of that parent.

(2A) For the purposes of this paragraph, “earnings” means the employment income and the income from self-employment of the non-resident parent and the other person referred to in sub-paragraph (2), as determined for the purposes of their entitlement to working tax credit.
[...]

Child tax credit
13A. Payments made by way of the child tax credit to a non-resident parent or his partner at the rate payable at the effective date.

HoneyNutLoop

Bluemeanie wrote: »

https://www.gov.uk/how-child-maintenance-is-worked-out/how-the-child-support-agency-works-out-child-maintenance

This booklet has never been hugely upfront about the treatment of CTC, but the latest version (not yet published on the website by the looks of it) does spell it out in the glossary bit.

Bluemeanie_2

I know, I don't doubt anyone's word I just don't understand why the calculator doesn't say to add CTC in to get your weekly income. It's a bit misleading if you just go to the calculator, which most probably do. It tells you only to use WTC. Seems an oversight.

HoneyNutLoop

It didn't even used to mention WTC til recently!!

kittkatt82

Bluemeanie wrote: »

I know, I don't doubt anyone's word I just don't understand why the calculator doesn't say to add CTC in to get your weekly income. It's a bit misleading if you just go to the calculator, which most probably do. It tells you only to use WTC. Seems an oversight.

Thanks everyone. Seems a very big oversight if both the csa and maintenance options believe it is only wtc used as I was informed today. Another example of why the whole system is such a shambles! I have dug through all paperwork and no-where have we ever been asked for tax credits details, despite making them aware of all changes, just refers to the term 'earnings' which tax credits are not. Even when we told them of an increase in earnings, the response was to wait until reassessment which was done directly with the employer without any request for further info. Will be interesting to see if we are asked at any point in the future.

PreludeForTimeFeelers

kittkatt82 wrote: »

I have dug through all paperwork and no-where have we ever been asked for tax credits details, despite making them aware of all changes, just refers to the term 'earnings' which tax credits are not.

Normally they'll ask for income, rather than earnings.

cakeforbrains

One of the CSA's quite senior caseworkers once told me that they can't actually ask the NRP if they get tax credits. They can only take them into account if the NRP mentions them. This struck me as utterly ludicrous (and possibly inaccurate). I'm interested to know how they do it because I know my NRP is planning to have a child.

shegirl

cakeforbrains wrote: »

One of the CSA's quite senior caseworkers once told me that they can't actually ask the NRP if they get tax credits. They can only take them into account if the NRP mentions them. This struck me as utterly ludicrous (and possibly inaccurate). I'm interested to know how they do it because I know my NRP is planning to have a child.

They can ask and will do so by asking if they have any other income such as tax credits etc.The can also do a 'benefits check' on the system if you know they are claiming and the nrp refuses to give information/denies claiming.

alone4life

cakeforbrains wrote: »

One of the CSA's quite senior caseworkers once told me that they can't actually ask the NRP if they get tax credits. They can only take them into account if the NRP mentions them. This struck me as utterly ludicrous (and possibly inaccurate). I'm interested to know how they do it because I know my NRP is planning to have a child.

Its funny you should mention this as i have read it on this forum somewhere before and on other child maintenance forums id really be interested to know if it was true.

Also as pointed out i find it odd that the new calculator clearly asks for WTC but not CTC wasn't there rumors on this forum and other forums (true or not i don't know) about Universal credit and tax credits not been included in the CSA maintenance calculation?.

And (my opinion of course) it might not be against the rules but i think its morally wrong to take another child's tax credits especially when people will be getting there own as well.

Also CSA2 has been around for a long time now don't you think its strange how nobody has ever come up with the definitive answer regarding CTC? i mean somebody must know somewhere?.