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CSA and redundancy pay

2 replies

mummynumber2 · 29/11/2008 15:12

Just wondering if anyone knows how this works.

IF (and it is starting to look that way) dp gets made redundant he'll get around 6-8 months pay but the chances are when he gets another job it won't be nearly as well paid so will need to try to hang onto as much money as we can. Obviously we'll try to carry on giving dp's ex the same amount of money for as long as possible but wondering if the CSA makes it mandatory to hand over a percentage of redundancy pay as soon as it's received.

This has come at such a bad time as we were just beginning to make some progress in returning to a situation where DSCs live with us 1/2 the time which was dependant on us not reducing maintenance.

Can someone help?

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BrownSuga · 29/11/2008 22:03

page 8 says contractural redundancy is earnings subject to CSA, but Statutory redundancy pay is not considered earnings when doing the calc. You need to determine which type of redundancy it is.

Also this, but it's quite old question:
. Redundancy payment - does the CSA take it into account? (2001-10-31)

If the redundancy money is tax exempt then it should not be included in earnings; the CSA should ignore it. This means that anything over UKP 30,000 will be taken into account. (Payment in Lieu of Notice - PILON - counts as income).

The legislative basis quoted is Child Support (MASC) regulations, Schedule 1 paragraph 1(2).

mummynumber2 · 01/12/2008 16:59

Thanks BrownSuga. Not quite sure of the terms of his redundancy pay yet and it's possible that I'm being a bit premature about this. But you've steered me in the right direction for finding out some answers.

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