CSA please help

CR74

Any help would be great! I split up with my ex wife app 2 yrs ago and have a 15yr old son. When we split up I was left with all the debt and a lot of it, so for the last year I have been working all the hrs god sends to pay the debt off and yipeeee nearly there! I received a letter the other day for maintenance which I have no problem paying! The problem I do have is the CSA have gone straight to HMRC for my earnings last year and the schedule has been set up on the gross figure minus pension! I have told them this is not my usual earnings (explaining all the overtime I have been doing) and they have said they will only recalculate if I earn more or less than 25%. Surely they can only make me pay my actual basic salary! Anyone!

shoe*diva79

Is your basic salary now 25% less then what you were earning?

HoneyNutLoop

What they have told you is accurate. This booklet explains:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/260890/how-we-work-out-child-maintenance.pdf
Depending on the nature of the debts, they may also take them into account under the variations scheme.

PreludeForTimeFeelers

That's how the assessment works on the new scheme - your most recent tax-year is used. If your current income is only 75% or less of your earnings from last year then they will assess you on your current earnings.

CR74

By the end of this financial tax year my wages will just be under 25% less.
Why did they go straight to HMRC and not ask for payslips? Do they not ask for them anymore? Also does anyone know if the figure changes on a yearly basis? Ie if I earn less this next tax year will they automatically get in touch with Hmrc in another 12 months to get my new figure or do I have to provide it?
Thanks for your replies.

Crellow4

Your payments will ONLY be recalculated if your earnings vary by 25% or more either up or down. The current scheme is based on average earnings for the year hence the information is gathered from the IR.

PreludeForTimeFeelers

CR74 wrote: »

By the end of this financial tax year my wages will just be under 25% less.
Why did they go straight to HMRC and not ask for payslips? Do they not ask for them anymore? Also does anyone know if the figure changes on a yearly basis? Ie if I earn less this next tax year will they automatically get in touch with Hmrc in another 12 months to get my new figure or do I have to provide it?
Thanks for your replies.

They go straight to HMRC as it is way quicker than asking NRPs to supply wage information - the interfaces with HMRC show the last year's tax figures within 30 seconds, as opposed to writing to NRPs, waiting a week for a reply, sending a reminder letter, waiting another 7 days, then writing to an employer, waiting 7 days, sending another reminder...

It's a no-brainer really.

If your income changes by more than 25% over the course of the year then you should contact them for a reassessment. If it doesn't, then after a year you will automatically be reassessed on your next tax year, whether this is 25% different or not.

PreludeForTimeFeelers

Crellow4 wrote: »

Your payments will ONLY be recalculated if your earnings vary by 25% or more either up or down. The current scheme is based on average earnings for the year hence the information is gathered from the IR.

Once a case gets to annual review it will be reassessed automatically, with no tolerance at all, and the new assessment put in place.