CSA payments, whats taken into account?

Loopy_Girl

Thanks Kelloggs and Freebies for replying....it's such a complicated system and I did sit down and work out whether I would be better closing the file and reopening under CSA2 in a few months...and the moment under this assessment (although lets not forget I have the joy of an appeal no doubt about to be coming through the door) I am better off on CSA1....if the appeal is successful and the award gets lowered then I may have to reassess my situation.

kelloggs36

With no existing CSA case, it will be calculated under the CS2 rules which is his net income plus tax credits added on, then take off 20% of that total, and then work ut 25% of what is left - that is what he would be expected to pay under CSA.

justontime

kelloggs36 wrote: »

CS1 is calculated like this:P

Maintenance Requirement (based on ages of children and income support rates for them, plus carer's allowance, plus family premium LESS child benefit in payment for them).

NRP net income calculate: Gross less tax, national insurance and HALF of any pension contributions PLUS child tax credit and working tax credit if they are the higher earner or half if they are earn the same as their partner and no working tax credit if they earn less than their partner, plus any dividends from shares etc

Exempt income calculated= personal allowance for NRP (currently £59.15 per week) plus housing costs plus any other allowances which apply (eg travel to work which is in excess of 150 miles per week as the crow flies at a rate of 10p per mile over this 150 miles or disability premium, or 50% or 100% of any child allowances for any children which are biologically the NRP's or who has been legally adopted - 50% if the other parent of that child is able to contribute due to their earnings, plus family premium for those children)

What is left is cut in half. Normally the PWC income is also assessed in the same way, but in most cases the PWC has no assessable income

If that amount cut in half is less than the maintenance requirement, the final calculation is the protected income to see if the household can afford to pay what has been calculated. If not, it is reduced to fit the protected income, if it can, then that is the actual maintenance payable.

If the amount is more than the maintenance requirement, then a further calculation on the amount which is more than the maintenance requirement is done by working out 15%, 20% or 25% of what is left which is then added to the figure equal to the maintenance requirement and then becomes the assessable income. Then the protected income is calculated.;

Kelloggs as I understand it under CS1 Child Tax Credit is included as income under the Protected Income section only, it is disregarded in full in the Exempt Income section. Working Tax Credit is included as income for the NRP unless the NRPP partner earns equal income to NRP in which case only 50% is included, and if the NRPP earns more than the NRP Working Tax Credit is not included as income in the calculation

kelloggs36

Yes, sorry, Under CS1 child tax credits are used in the protected income section. Under CS2 however, it is ALWAYS deemed to be the income of the NRP.

iluvfreebies

kelloggs36 wrote: »

Yes, sorry, Under CS1 child tax credits are used in the protected income section. Under CS2 however, it is ALWAYS deemed to be the income of the NRP.

under cs2 only ctc is always taken into account wtc is taken into account only if paid in the nrp's name i.e the nrp is the higher earner - any wtc paid to a partner is not taken into account as income as it is the partners income not the nrp's

hth

kelloggs36

That is not true. If the NRPP earns equal to or less than the NRP then either half or all of the wtc will be taken into account. Only in the case where the NRPP earns more than the NRP is it not taken into account. All claims are made jointly.