I know nothing about CSA so hopefuly someone can provide anwers :
I have client married with two children . He receives a service pension , War pension + CA for looking after his wife . His wife receives DLA - High Rate for both components . They both receive CTB , HB , CB + CTB .
His wife is a NRP for CSA purposes - she has two children from previous relationship who live with their father . She pays CSA £ 20.90 every 4 weeks . I have tried to read up on the subject and am assuming she is paying the flat rate .
I asked client to ring CSA to confirm as they have not been sent any detailed calculations or information on how it is worked it out . CSA told client : his income is disregarded ; the 90pence was an administration fee ! ; they were not able to provide any further details - my client was given tel number of another office but they were unable to help .
My client's concerns were :
1) If he set up his own business would the income be taken into account by CSA ?
2) To clarify - Is all of his income disregarded regardless of source + how much ?
3) Do CSA disregard the CB + CTC they receive for their own children ?
4)His wife's only income is her DLA - are the CSA allowed to take this into account as income ?

Would appreciate some help
Thanks
Sue

Hi Sue,

Sorry but you will need to ascertain under which CSA the MA has been made, old or new rules. Then it would be possible to consider the disregards & variations. The flat certainly appears to be in play here and if he does go self-employed his service pension would be taken into consideration and difficult ofset as and when he starts making a profit from teh business, should he choose to go ahead.

Judging by the level of income and the flat rate it would appear to me that the NRP falls under the old system. Can one assume again that the service pension is based on a pension for the purposed of a medical discharge, that being tax exempt. Also the husband if going self-employed may need to consider the affects this may have on his war pension, if any. As I am sure you are aware there are more issues here, so I would seek to ascertain what MA is in place though you could while waiting for a response assess the families income and circumstances under both rules and take into account adjustments for any 2008 rules that may apply.