Dealing with the CSA

[ASB]

Is that actually what happens, or is that what you THINK should happen? you say it is subjective, so are you saying you think it should be taken into account? or that the CSA can take it into account should they decide to?

It's not income yet surely.

Once it becomes income, only then should it be taken into account I would have thought.

In terms of retained income the CSA can only take it into account should the PWC request a variation. I am not aware of any cases where it has been taken into account but I expect there are some somewhere. This will only be because it is viewed as an asset of the NRP.

However all cases are different, it depends why it is being retained and how significant it is. Under the current scheme for example somebody who controls their own income does have the ability to a certain extent to defeat the intention of the system. This could be achieved by paying no salary, no dividends and stuffing the lot in a company pension. Do it right and CSA payments will be zero. Obviously this is an extreme example.

The other side of that though is that the legislature has a responsibility to ensure it legislates to meet its intentions, so the view that it is the fault of the system that this is allowed to happen is equally valid.

So, yes I do think it should be taken into account. But that does not meant that I think it should always be counted. If it is always counted then there will be circumstances when it effectively becomes income - and thus charged to CSA payments - twice.

[castoff101]

I recently attended a Tribunal as a NRP, and company retained money WAS taken into account, however expenses were allowed...

A Tribunal can consider if it is "just and equitable" to include retained profits left in a Limited Company.

Of course if you can sort something out with the PWC you may not have not face such a conclusion!

Good luck.

[escapeUK]

I recently attended a Tribunal as a NRP, and company retained money WAS taken into account, however expenses were allowed...

A Tribunal can consider if it is "just and equitable" to retain profits in a Limited Company.

Im glad I'll never be in such a position. But isnt is strange how they look at total earnings, rather than an essential amount of money. If a child needs £400 a month to live a nice life, that should be the maximum awarded shouldnt it? What does the amount the missing parent earns have to do with anything? Do children of consultants needs more than children of bin men somehow?

Good luck.

[hariseldon]

Thanks for the responses.

It wasn't in my thoughts to include money retained in the business - it'll be under 50k at the end of the year I would imagine anyway - because as already suggested, that would be used during lean times and I could continue paying the set amount. Surely that is better... and means no disruption to money that is potentially relied upon.

Although I suppose the counter argument might be that if lean times rarely or never come, there is never an opportunity to balance it out.

Interesting that they can take it into account.

[Contractor UK]

Contractors' Questions: Does the CSA consider dividends? :: Contractor UK - Contracting News and Guides Article on dividends may help?

[Mojito]

Maintenance under JSA

Thanks for the responses.

It wasn't in my thoughts to include money retained in the business - it'll be under 50k at the end of the year I would imagine anyway - because as already suggested, that would be used during lean times and I could continue paying the set amount. Surely that is better... and means no disruption to money that is potentially relied upon.

Although I suppose the counter argument might be that if lean times rarely or never come, there is never an opportunity to balance it out.

Interesting that they can take it into account.

When lean times do come, presumably you'd put yourself into the 'system' and claim JSA. It may be worth pointing out to the ex that those nice people will drop CM down to £5 immediately when you qualify for JSA. If the CM is a fundemantal part of the ex's household income (i.e. its paying the mortgage) then you may get a rational response. Its all swings & roundabouts.....

Good luck