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The percentage deducted from pay will fall. Instead of paying 15pc for one child, 20pc for two, or 25pc of net salary for three children, an absent parent will pay 12pc, 16pc or 19pc up to earnings of £800 a week. Above this they pay 9pc of gross salary for one child, 12pc for two and 15pc for three.
Does it mean the child support allowance go down? We're currently paying to my partner's ex-wife (family-based agreement) based on the CSA website calculations (taking into account that kids are spending 2-3 days a week with us + holidays).
She already has the paid off house, a new car, £20k cash after selling house she blackmailed out of my partner during the divorce, and her new boyfriend pays for her vacation. So without being nasty, will we pay less child maintenance under new CMS rules?
There probably won't be a great deal of difference in the payments unless your partner is on a low income (in which case the payments might go down slightly) or a high income (in which case they will increase) - the change is due to the tax bands.
to give examples for 2 children (and these are straight mathematical calculations based on income with no other factors taken into account)
£10k gross income, the net is £9754 - CMS is £133 per month, CSA is £162 per month (would actually be lower as income less than £200 per week and there's a transitional calculation)
£25k gross, net is £19953 - CMS is £333 per month, CSA is £332 per month
£60k gross, net is £41941 - CMS is £800 per month, CSA is £699 per month
Hope that clarifies.
Hello Aphrodita
I am William, the Child Maintenance Options consultant
The way statutory maintenance payments are worked out has changed, this is because the service which calculates them has also changed. The Child Support Agency (CSA) no longer accept new cases, it is now the Child Maintenance Service who deal with those.
The CSA used to work out maintenance based on the paying parent’s net weekly income, but the Child Maintenance Service use their gross weekly income. As you indicate, the percentages have also changed. You can find out if your payments would be different if calculated by the Child Maintenance Service by using the Online Calculator on the Child Maintenance Options website http://www.cmoptions.org.
The payments of people who already have a CSA case in place will not be affected at the moment.
Regards
William
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