Can the CSA take money from a settlement/compromise agreement?

bluesauce

Hi

I hope someone can help, I have tried to find the answer everywhere, but have failed!

I am about to become subject to a compromise agreement whereby my employment will case & I am to receive a compensatory payment for loss of office. The first £30k of this payment is tax & NIC free, but I will pay tax at 40% (but not NIC) on the amount above £30k.

My question is can the CSA make me pay child maintenance on some, or all, of this compensatory payment?

It's essential that I know this for my financial planning: I'm looking at becoming self employed and need to know how much money I have to start the business.

Thanks, in advance, for your help.

HappyMJ

No the calculation is only from earnings but if you've got arrears they can start enforcement proceedings against you so I'd just clear them before they start adding costs. You've not mentioned any so I'm assuming not.

You morally need to consider how you are going to help supporting your child. Are you going to keep paying the same amount (which would be great if you can but it's not expected), reduce it slightly (which still would be fine as long as it's still a fair and reasonable amount) or reduce the payment to NIL (which you can do but I and many others really wouldn't agree with).

bluesauce

Many thanks for your reply.

I have no arrears: I've been an exemplary payer!

Initially, with no income, I am going to have to reduce the payments substantially. However, I want to support my chidden and as soon as I have employment, or the self employment gets underway, I will gladly, with pleasure, make payments according to my income.

Does anyone have direct experience of this settlement agreement scenario?

Thanks