Hi I pay my csa every month based on my earnings.My partner of 3 years as asked me to move in with her.Im considering renting out my house rather than sell it.Does the CSA take in to account the rent coming into myself as an additional earning when working out payments?Many thanks Martin
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Child maintenance on house
- Thread starter Martin73
- Start date
Hi Martin.
Broadly I believe it's based on taxable income. So presumably you will file tax returns if renting a house. Hence I think the rent is likely to be considered. Bearing in mind its the taxable profit that will be assessed I think.
However I believe rental income is unearned income so child maintenance may not necessarily pick it up as I think they work off p60 pay figures primarily. I think I've read somewhere previously there may be a threshold before this rental income is considered but not sure if that still applies.
You may wany to discuss with child maintenance. Be wary that if your ex finds out about this she may flag it to child maintenance to get it factored into your child maintenance payment.
The other thing to note is tax relief for mortgage interest is no longer a deduction in arriving at the profit that's taxable. It's a relief at the basic rate of tax. This can be important as it effectively means the amount assessed would be higher for child maintenance purposes.
If you've got a breakdown of the expected rental and expenses that are expected it may help advise
Broadly I believe it's based on taxable income. So presumably you will file tax returns if renting a house. Hence I think the rent is likely to be considered. Bearing in mind its the taxable profit that will be assessed I think.
However I believe rental income is unearned income so child maintenance may not necessarily pick it up as I think they work off p60 pay figures primarily. I think I've read somewhere previously there may be a threshold before this rental income is considered but not sure if that still applies.
You may wany to discuss with child maintenance. Be wary that if your ex finds out about this she may flag it to child maintenance to get it factored into your child maintenance payment.
The other thing to note is tax relief for mortgage interest is no longer a deduction in arriving at the profit that's taxable. It's a relief at the basic rate of tax. This can be important as it effectively means the amount assessed would be higher for child maintenance purposes.
If you've got a breakdown of the expected rental and expenses that are expected it may help advise
I would also add if you sell the house and sit on a pot of money that can also be an issue I'm afraid. Somebody on here will be able to explain the specifics but I think if you hold capital over a certain threshold it can be assessed for child maintenance
Again I think it partly depends on the amounts involved and also if your ex gets wind of it and asks child maintenance to look into.
Unfortunately they get you one way or the other!
Again I think it partly depends on the amounts involved and also if your ex gets wind of it and asks child maintenance to look into.
Unfortunately they get you one way or the other!
Hi, welcome.
Use the following to understand your potential liabilities:
Specifically para 33004 deals with rental income and para 34003 deals with assets classed as 'notional income' eg property owned that is not primary residence.
You don't have to declare as NRP, it's down to the RP to do so.
Please update this forum as appropriate.
HTH, SS.
Use the following to understand your potential liabilities:
Specifically para 33004 deals with rental income and para 34003 deals with assets classed as 'notional income' eg property owned that is not primary residence.
You don't have to declare as NRP, it's down to the RP to do so.
Please update this forum as appropriate.
HTH, SS.
Thanks for your reply.much appreciated
Hi Martin,
My teenage daughter wanted to try living with her Dad and hence I pay child maintenance. The threshold for “profit” (rental income less expenses) is £2500. Anything below £2500 will not be taken into consideration. My Ex applied to CMS to take the rental income I receive into consideration. They asked me to send them my tax return. Still waiting for a response. I have included “annual mortgage interest” in my expenses but I’m not sure if that is taken into consideration. The mortgage company issued me with a statement/certificate showing the annual interest paid (cost of financing the rental property). Will keep you posted if the CMS allow this to be taken into account. Certainly would lower the “unearned income” amount.
If anyone else knows, please let us know.
(I hope no one minds a Mummy posting on here, nothing exists for me!)
My teenage daughter wanted to try living with her Dad and hence I pay child maintenance. The threshold for “profit” (rental income less expenses) is £2500. Anything below £2500 will not be taken into consideration. My Ex applied to CMS to take the rental income I receive into consideration. They asked me to send them my tax return. Still waiting for a response. I have included “annual mortgage interest” in my expenses but I’m not sure if that is taken into consideration. The mortgage company issued me with a statement/certificate showing the annual interest paid (cost of financing the rental property). Will keep you posted if the CMS allow this to be taken into account. Certainly would lower the “unearned income” amount.
If anyone else knows, please let us know.
(I hope no one minds a Mummy posting on here, nothing exists for me!)
Thanks you for posting this link. here's what it says:
33004 In line with Part 3 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA)1, property income is where a NRP is in receipt of rental income from properties or land in the UK or in foreign countries, and that rental income is subject to UK Income Tax. The capital value of the property or land isnot taken into account.Note: As landlords can claim tax relief for certain cost linked to their properties, the rental income provided to the CMS is usually the amount once HMRC allowable expenses have been deducted (i.e.mortgages, maintenance of the property, rent, ground rent and service charges).1 CSMC Regs 2012, reg 69 (2)(a)
I'm trying to explain as an NRP, to my ex that the mortgage and house insurance costs of my rental property is deductible from the rent I receive in order to work out the 16% child maintenance payment, but her solicitor has advised I should be paying 16% of the rent. For example, I am saying that if the rent is £1000 and the mortgage and insurance is £200, then the 16% calculation is 16%x£800, not 16%x£1000, as she is working it out.
What I am seeking is concrete evidence that my calculation of deducting the mortgage and insurance from the actual rent figure is correct. She is claiming that the gross income from the property is £1000 (for example), rather than the taxable gross of £800 (for example).
There is a lot riding on this, so would be so grateful for any clarity that anyone could provide.
Many thanks.
Hi Martin,
I have just received my response from CMS and they have taken rates, expenses and house insurance into consideration but not the interest on the mortgage. I am over the threshold so I now have a new payment schedule, paying extra per month.
In a nutshell, they look at total rent less the above mentioned expenses. Perhaps your house might need a new boiler!! (Quite costly but will be deducted from the total rent figure!)
Thank you for taking the time over this - much appreciation. I'm sorry you're paying more now, the system seems so unfair and fixed against the NRP.
You say your teenage daughter decided to try living with her Dad. How old is she exactly? It was good you didn't try to stop her but do you still get to see her?