CSA help! Advice please

Crellow4

It's a way off the £468 plus mortgage he's currently liable for though!

when_will_it_end

He is only paying what the CSA calculates, as some have pointed out if you did move you would be entitled to keep the whole of the CSA.


I think for 5 children he is paying the right amount, it averages £35 pounds per child per week. which is a good amount.


You only receive £108 pounds per week which is not much more than £20 pounds per child, if every child needed a new pair of shoes that week all that money would be spent, but u do have the reassurance of remaining in a home that your children feel settled in for now, maybe look into moving when you are fully independent, £177 pounds a week with 5 children is not that much if they all need kitting out at the same time and want extra activities such as gymnastics, judo, ect...


good luck x

Potato123_2

This is where I'm confused

At the minute he's failed to pay the CSA and now owes them.


But they have told me he's to pay 108 per week plus mortgage ontop?? I'm confused by all this. Nothing seams simple or straight forward. I just want to start moving forward and getting on now. But I can't until access/money is sorted.


As for moving its deff one I'm looking at doing in the new year, fingers crossed

DUTR

Potato123 wrote: »

This is where I'm confused

At the minute he's failed to pay the CSA and now owes them.


But they have told me he's to pay 108 per week plus mortgage ontop?? I'm confused by all this. Nothing seams simple or straight forward. I just want to start moving forward and getting on now. But I can't until access/money is sorted.


As for moving its deff one I'm looking at doing in the new year, fingers crossed

That doesn't sound right for two reasons, £108per week plus the mortgage?? That would mean he is earning about £1034 per week gross or £709 net, and besides they can't instruct that he pays the mortgage.
£108/25 * 100 =£432 net per week or £1857 month.
At £2k month cs contributions is £115 per week .

Potato123_2

Shall be giving them another ring Monday now grrrr ty

I'm not here to drain him just what something towards upkeep for our children.

DUTR

Crellow4 wrote: »

It's a way off the £468 plus mortgage he's currently liable for though!

Sort of, yes he is liable for the mortgage, but can seek a variation or more so for the mortgage payments to be reduced from the liability, the liability is 25% net, at £2k that's £500 a month, £500 less the £300 mortgage leaves £200 a month or £50 per week.
I do not recall where the CSA can instruct that a mortgage be paid and cs contributions, the mortgage has nothing to do with them.

DUTR

Potato123 wrote: »

Shall be giving them another ring Monday now grrrr ty

I'm not here to drain him just what something towards upkeep for our children.

Something suggests to me, you need to get the calculator out and do the maths, ringing them is not going to achieve much if you are not aware of how the figures are calculated.

Crellow4

DUTR wrote: »

Sort of, yes he is liable for the mortgage, but can seek a variation or more so for the mortgage payments to be reduced from the liability, the liability is 25% net, at £2k that's £500 a month, £500 less the £300 mortgage leaves £200 a month or £50 per week.
I do not recall where the CSA can instruct that a mortgage be paid and cs contributions, the mortgage has nothing to do with them.

You are incorrect DUTR in your method of calculation for a Variation on prior debts. The way it is actually worked out us to reduce net income by the mortgage payment - using your figures the net income would reduce from £2000 per month to £1765 as the mortgage payments are subject to a £15 threshold - this gives a weekly figure if £407.31, 25% of this is £102 - £442month.

HoneyNutLoop

DUTR wrote: »

Sort of, yes he is liable for the mortgage, but can seek a variation or more so for the mortgage payments to be reduced from the liability, the liability is 25% net, at £2k that's £500 a month, £500 less the £300 mortgage leaves £200 a month or £50 per week.
I do not recall where the CSA can instruct that a mortgage be paid and cs contributions, the mortgage has nothing to do with them.

Variations aren't deducted from liability. They are deducted from income which then impacts liability.

So instead of paying 25% of £2000 a month he would pay 25% of £1700 a month (£2000 - £300 mortgage) so £425 child maintenance plus the £300 mortgage. Obviously if he stopped paying the mortgage the variation would end and he would have to pay £500 a month maintenance. However, as the mortgage is in his name, he will utterly wreck his credit rating by doing that, face the house being repossessed and likely losing money on the house through the repossession to boot.

I'm guessing he doesn't want that and so keeps paying the mortgage. But like you, I'm also guessing he thought the mortgage payment would come off the liability pound for pound, when it doesn't. All that happens really is that they say he doesn't have to pay any maintenance on the income used to pay the mortgage, so in this case his maintenance goes down by 25p for every £1 he spends on it. He still has to pay his maintenance on the rest of his income though.

EDIT: lol crossed posts with Crellow, who's arithmetic is right. I'd forgotten about the £15/wk threshold. Although if the op is on 2012 scheme/CS3 the threshold isn't deducted. The variation would be for the full mortgage. Also the income/% used would be different too.

DUTR

HoneyNutLoop wrote: »

Variations aren't deducted from liability. They are deducted from income which then impacts liability.

So instead of paying 25% of £2000 a month he would pay 25% of £1700 a month (£2000 - £300 mortgage) so £425 child maintenance plus the £300 mortgage. Obviously if he stopped paying the mortgage the variation would end and he would have to pay £500 a month maintenance. However, as the mortgage is in his name, he will utterly wreck his credit rating by doing that, face the house being repossessed and likely losing money on the house through the repossession to boot.

I'm guessing he doesn't want that and so keeps paying the mortgage. But like you, I'm also guessing he thought the mortgage payment would come off the liability pound for pound, when it doesn't. All that happens really is that they say he doesn't have to pay any maintenance on the income used to pay the mortgage, so in this case his maintenance goes down by 25p for every £1 he spends on it. He still has to pay his maintenance on the rest of his income though.

EDIT: lol crossed posts with Crellow, who's arithmetic is right. I'd forgotten about the £15/wk threshold. Although if the op is on 2012 scheme/CS3 the threshold isn't deducted. The variation would be for the full mortgage. Also the income/% used would be different too.

Thanks for spelling it out, I was confused at the figures until you explained, it seems the 25% and not pay the mortgage is his frugal choice, as at present he will be paying near 30%.....and it's still not enough