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A colleuge at work has said there is a change to the way CSA payments are paid.
He said the non residant will be charge an extra 20% tax on what they currently pay and the residant parent will be deducted 4% tax from there payment.
He did comment that you can disagree to this and request to pat the residant parent direct to avoid these taxes, he also said if the residant parent refuses to be paid direct you can refuse to pay and the account is put in to disupte.
does anyone have any factual information regarding this, as I for one do not wish to pay anymore tax to our poxy goverment
please help.
That's wrong
The resident parent can't dictate how the non resident parent pays, he will be given the option to pay by direct pay with no charges where the resident parent likes it or not
Hi
I’m William, the Child Maintenance Options Consultant.
Thank you for your post. I will try and answer some of the points you’ve raised.
In November 2013, the government opened the Child Maintenance Service for all statutory scheme applications. From that point, the Child Support Agency (CSA) no longer accepted new applications, however it will continue to manage the existing cases on the 1993 and 2003 schemes.
The Child Maintenance Service will eventually replace the Child Support Agency to leave one single child maintenance scheme.
Later in 2014, the government are planning to introduce fees and charges to use the Child Maintenance Service only.
There are no plans to apply charges and fees to cases managed by the Child Support Agency.
The fees and charges are being introduced because the government wants to encourage more parents to think about working together to arrange child maintenance instead of using the Child Maintenance Service or the courts.
Fees and charges:
• a one-off £20 fee for new applications to the Child Maintenance Service
• a 20% collection fee per payment for paying parents using Collect & Pay
• a 4% collection fee taken off each payment passed on to the receiving parent for using Collect & Pay.
• a range of charges for the different enforcement action the Child Maintenance Service can take against paying parents when a payment is missed or not made in full. For example, a one-off £50 charge for a paying parent for setting up a deduction from earnings order.
There will be no collection fees for parents who pay and receive child maintenance using Direct Pay. Direct Pay is when the Child Maintenance Service works out the amount of child maintenance a paying parent must pay, but parents agree between themselves how and when payments are made.
Without a good reason – such as proof of previous missed payments – the Child Maintenance Service cannot force the paying parent to use Collect & Pay and therefore incur collection fees.
If the Direct Pay arrangement breaks down, collection fees will apply when the case returns to a Collect & Pay arrangement.
Parents can agree to work together and set up their own family-based arrangement rather than use the statutory child maintenance scheme through the Child Maintenance Service or Child Support Agency
A family-based arrangement is when parents work together to sort out child maintenance between themselves, without the involvement of anyone else.
Dad.info recently asked the Department for Work and Pensions to answer questions on the fees and charges. Their Q&A page will provide more information - http://www.dad.info/child-maintenance/child-maintenance-q-a
Please contact Child Maintenance Options on 0800 988 0988 or www.cmoptions.org.uk for more information, support and guidance on child maintenance.
Thanks
William
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