In December 2012 the Child Support Agency introduced a new regime for calculating child maintenance. This has only been used on a small pilot group to date but, if successful, it is expected to become wide spread.
At present child maintenance is calculated based on the non-resident parent’s (parent who does not live with the child) net income. The non-resident parent will either pay 15, 20 or 25% of their net monthly income depending on whether they have 1, 2 or 3 children. (If the non-resident parents earns between £800.00 and £2,000.00 a week they will be subject to an increase per child)
The new scheme proposes to base the child maintenance calculation on the non-resident parent’s gross income. It is proposed the non-resident parent will pay 12, 16 or 19% of their monthly gross income. (If the non-resident parents earns between £800.00 and £3,000.00 a week they will be subject to an increase per child). It is proposed that this income will be sought from HMRC, whether for an employed person it is the PAYE calculation or for a self employed person it is the self-employed tax return. This scheme may be introduced as it will save the government money, HMRC and the CSA can now work together, and the CSA will no longer have to do any long calculations.
In practical terms what will this mean?
If you have any questions do not hesitate to contact the family team here at Edward Hands and Lewis.
Faye Remnant is part of our Family Law team based in Loughborough; our Solicitors in Loughborough are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Loughborough please contact us.
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