CSA question!

nettienoo70

Asking this for a friend, friend has a partner and they have a child together, friends partner has a older child from a previous relationship. They have just received a letter saying that my friend has to hand over half of her tax credits to her partners ex even though her partner is allready paying CSA for the older child. Is this correct?

merlin68

Whos the letter from?

nettienoo70

As far as i know Tax credits, but will double check

No it was CSA, they said child tax credits are classed as income

HoneyNutLoop

Under the 2003 scheme, they count child tax credits as the non-resident parents income, and working tax credits if they are the primary earner.

The percentage rates applied are 15% for 1 child, 20% for 2 and 25% for 3 or more. The income taken into account is also discounted by the same percentage rates for the children living in the non-resident parent's household.

So, if the non-resident parent had a net income of £250 a week plus £80 a week tax credits, 2 children in the household and 2 children to pay maintenance for, the calculation would look like this:

Starting income £330
Discount for children in household 20% = £66
£330 - £66 = £264 x 20% for maintenance = £52.80
2003 scheme maintenance is rounded to the nearest pound, so £53 a week would be payable in this hypothetical.

shoe*diva79

Yes, tax credits are classed as income but your friend is exaggerating, it will be either 15% for one child, 20% for 2 children or 25% for 3 or more children.

In addition, your friends partner, if he has his children overnight then he gets a discount.

nettienoo70

Thanks, I did think half was a bit too much,