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TOPIC: Definition of "gross income" - new CSA arrangement

Definition of "gross income" - new CSA arrangement 1 year 6 months ago #26866

  • benwick
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Does anybody know how "gross income" is being defined under the new arrangements replacing the previous CSA formula?

I understand that it is before pensions and national insurance contributions and other tax. But my employer allows me to sacrifice some gross salary in exchange for a couple of extra days holiday, and medical insurance. Would this reduce my gross income for maintenance calculation purposes, or will I still be liable for the whole amount regardless? thanks
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Re: Definition of "gross income" - new CSA arrangement 1 year 6 months ago #26875

  • actd
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I would say that it's the gross income figure that appears on your pay slip and p60. If it's informal at the moment, then you could take a drop in salary and make it formal.
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I am not qualified in family law, or other area of family matters. I am simply a dad who has been through the mill. Any opinions I give are my own, and any advice should be checked before acting on it.
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Re: Definition of "gross income" - new CSA arrangement 1 year 6 months ago #26877

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Yep, thanks. It seems to me, from trying to plough through the various regulatory instruments, that gross income is calculated as any income that is taxable, after any pension contributions made by the employer (being non-taxable).

So, for example, my employer allows me to "sell" five days holiday per year ( I sure need it.....), in exchange for a slightly lower income. I reckon this would reduce my gross income for the calculation purposes as I'd clearly not be paying tax on those earnings which I won't ever receive. But optional private medical insurance, which I can pay for out of my salary, is probably a taxable benefit, so wouldn't reduce my earnings for the calculation.

If anyone disagrees, or has more of an expert view, please shout...
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Re: Definition of "gross income" - new CSA arrangement 1 year 6 months ago #26886

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I would say (but I'm not an expert by any means) that taxable income is different from taxable benefits - so if you had a lower income, but got free private health care, you taxable income might be lower. You could have a word with the HMRCS about this - they are generally pretty helpful.
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Re: Definition of "gross income" - new CSA arrangement 1 year 6 months ago #27237

Hi benwick.

Thank you for your post. My name is William, I am the Child Maintenance Options consultant.

Here at Child Maintenance Options we provide free impartial information and support to parents and anyone else with an interest in child maintenance.

The Child Maintenance Service works out child maintenance using the paying parent's gross income, which is income before Income Tax and National Insurance are taken off, but after occupational or personal pension scheme contributions are taken away. In most cases this gross income figure comes from information given to HM Revenue and Customs by the paying parent, their employer or a third-party such as an accountant.

There are many other financial factors that may be taken into account by the Child Maintenance Service, so you may wish to speak with them directly. Their contact details can be found at: www.gov.uk/child-maintenance
This information which Child Maintenance Options has provided is not a substitute for independent professional advice and users should obtain professional advice relevant to their particular circumstances.

Please note: the Child Maintenance Options team cannot answer any questions relating to a specific CSA case
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