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Redundancy Pay & CSA

  • mjk8791
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8 months 4 weeks ago #509414 by mjk8791
Redundancy Pay & CSA was created by mjk8791
Background - divorced Jan. 2016, two daughters under 16. Consent order in place, paying monthly CSA using their online calculator.

I was made redundant in December 2018 and received a reasonable settlement. I used this as my wage until I got a job in April 2019, and also paid off some marital debts to lighten the financial load.

I did my annual CSA review last week, and my ex wife has now come back saying she wants to know the details of my redundancy package as it may affect my monthly payments - should I be worried?

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8 months 4 weeks ago #509418 by WYSPECIAL
Replied by WYSPECIAL on topic Re:Redundancy Pay & CSA
mjk8791 wrote:


I did my annual CSA review last week, and my ex wife has now come back saying she wants to know the details of my redundancy package as it may affect my monthly payments


No it won't. They get their figures from HMRC anyway. The first £30k is tax free so won't be classed as income. Anything over this will be included in their review but it sounds like you had no income, and therefore no liability if you had informed them, from December to April.

If your new salary is higher or lower than your previous salary your assessment may go up or down accordingly.

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8 months 4 weeks ago #509423 by mjk8791
Replied by mjk8791 on topic Re:Redundancy Pay & CSA
Thank you. After a lengthy e-mail discussion with her last night (she can't bring herself to speak to me in person or on the phone like a grown-up), I have a better understanding of what she's after.

She's wanting to know what elements of my redundancy package are taxable, and therefore eligible to be classed as income for CSA review purposes.

On my final payslip there was...

December's salary (taxable as normal)

The the following lines...
Notice pay - Taxable
Redundancy - Non
Compens NT
Employee Pension

Now as I understand it, only the notice pay (in lieu of notice) plus December's salary should be factored in. The Redundancy and Compensation are ex gratia and as such don't count?

I hope that makes sense and I hope someone can confirm I'm right.

She's already threatening to move away from our voluntary agreement towards a formal CSA arrangement.

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