Just curious

swingaloo

Before I start, I am not condoning this at all.

I have a friend who pays his ex £41 per month, that's for 2 children!:eek: He has paid through the CSA for the last 6 years.

He is self employed so therein probably lies the secret as to how he gets away with it. I know for certain that he dosnt make loads of money and is scraping by but also know he has a good accountant who keeps his tax minimal.

He now has a new partner who is working and they have a joint claim for working tax credits.

Now he has received a letter from the CSA asking for information regarding his income. Hes really worried as to why they have contacted him, apparently his ex has said nothing about it. I know nothing about how the CSA works other than what I have read on here and so would like to ask the following-

Is it most likely he has heard from them because his ex has contacted them for a variation or is it something they would do from time to time?

Will his new partners wage and their tax credits now be taken into account? I don't know which CSA he is on but he must have been paying about 6 years.

Thank you for reading.

cakeforbrains

Somebody who properly knows will be along in a minute but my understanding is:

The PWC (his ex) has probably contacted the CSA as they don't automatically review cases unless one of the parents notifies them of a change.

He's probably on CSA2, in which case his partner's wages won't be taken into account, but some or all of the tax credits will. They'll also discount for children in his household.

I know you're not condoning it, but I think he should be ashamed of himself paying just £41 per month unless he's on a seriously low income.

clearingout

that's £41 more than my self employed ex!

swingaloo

I quite agree.
I'm definately not condoning it, I have been with my partner for 15 years and we have been paying maintenance to his ex for his child and I don't begrudge her a penny of it.

I do know this friend has been struggling to make ends meet, hes classed as self employed but works for a large company and work is erratic plus he has to cover a lot of the expenses himself- ie, insurance, fuel etc so I know his accountant makes him liable for as little tax as possible.

He does have the children every other weekend and takes them to school on week mornings as he works split shifts. However I think its a measly sum for 2 children.
He now has this new partner who would love to be a 'lady of leisure' but has to go to work to help cover his mortgage etc. I think possibly his ex, quite rightly, thinks there is more cash going into his house so is trying for more.

So is that correct that they cant touch her wage but will take the tax credits into consideration.

cakeforbrains

If it's CSA2 then they won't be interested in what she earns. I couldn't tell you how they work out how much of the tax credits they take into account. I *think* that if he's the main earner they take all the tax credits into account, but hopefully somebody will come along soon to clarify.

Marisco

If he earns the most, they take all tax credit into account, if they earn the same, half is taken into account, and if she earns more than he does, then none is taken into account.