0 the amount of money that is considered when calculating tax payments
The third element is the deduction rate applied to the assessable income to determine the minimum amount of maintenance to be paid.
Until the maintenance requirement is met, the proposition is that assessable income will be shared equally between the qualifying children and the parent.
That is the rate which applies to assessable income in excess of the amount needed to meet the maintenance requirement.
The absent parent's costs of rehousing himself and any new children are deducted pound for pound from his assessable income, so reducing his maintenance bill.
If the absent parent is a lone parent, then his assessable income will increase; his maintenance may go up.
Where a parent with care has assessable income of her own, then she is assessed as contributing towards the maintenance requirement, including the carer element.
Assessable income is net income less allowances for living expenses, housing costs and any allowable travel-to-work costs.
A lower deduction rate of 25p in the pound applies to the balance of any assessable income remaining after the maintenance requirement is met.
