CMS

[johnboy1998]

Hi guys I have always paid direct maintenance to my ex but recently she has approached CMS my effective date for my case is 21/1/17. My question is:

My basic salary is 21500.

Ok they have taken my calculation from the 15/16 tax year where I had made myself I'll and was signed off with depression for three werks. My boss at time didn't organise work so was out all the time anyway it was no life. But was my choice I suppose

Anyway with a few months to go till the 16/17 tax year ends I will be on about 26k. I believe CMS won't reduce my payments due to not being 25% less.

I am confused with my options I have filled out variation form for overtime and commission and sent to CMS but I think my options seem to be:

Try to make 32k every year.

Stop all overtime so my basic salary is 21500 for the next again tax year 17/18. If I do this I need to live off my wage while paying CMS payments based on 32k for over a year or like I say I go and try make 32k again.

Does the 25% go both ways, so if it was 39k would payments go up.

I was paying three hundred a month never missed a payment and was living off overtime. Now I just seem to be stuck whatever I do now.

Any ideas on what to do I offered her payment several times and feel like a bit of a scumbag stopping it but I payed income tax for every penny and then CMS work my payment on gross. What would you guys do??

Thanks

[Hazy]

Play around with these figures.

https://www.gov.uk/calculate-your-child-...d/no/413.0

You will have to work out what is best for you. There isn't a huge amount of difference to pay if you earn a few k more. Out of every pound you're paying 12p. More if there is more than one child.

Is the ex going for collect and pay as you'll have a 20% fee on top of that?

Basically the 25% up or down mid year is only done by request, this request can be made by you or your ex.

If there is no review then the amount you pay is just calculated annually from your p60.

[johnboy1998]

Hi hazy thanks for reply but I have already got exes bank details and I am not a non payer or anything.

Ok so surely if they based my my claim from 21st January then surely when the tax year ends in April they will have to base it on that tax year. April 16 to April 17. I don't see how the 25 percent should matter as 15/16 tax year I was paying maintenance direct to her. Is this just a case of not having most up to date tax year or are they gonna make me pay in 32k. What a joke eh never missed a payment to her ever thanks

[johnboy1998]

Hi sorry I keep posting but I don't understand CMS at all. Ok so 15/16 tax year I made 32k which my claim getting based on.

In two months my new tax year comes in for 16/17 will be about 26k, CMS will not lower payment as not 25% difference so would have to pay on 32k till next tax year.

So ok say I just make my basic 21500 for the next tax year 17/18. Where will they then make the calculation on the 32, 26 or the 21500.

I am trying to figure out how to get some normality back in my life my contact has been reinstated every second weekend now. P.s once my claim processed what notice do I get to make payments to her? Thanks

[Hazy]

Let me try to help you understand.

In 2015/6 your p60 said £32k.

In 2016/7 it will be £26k

25% of £32 k is £8000 so that leaves £24k

When they do a yearly review they take the new p60 and work from that the 25% does NOT come into the yearly review. So your review should be worked out on £26k not £32k

The 25% variation only kicks in if you ask for a review between the tax years because of an income drop.

At your rvariation eview your income hadnt dropped by £8k so you didn't win that.

Is that easier to understand?

The only problem their might be is that it's up to them which tax year they decide to use. Bit sly really.

In my opinion for the future if you want to keep your payments at a similar level all the time then you need to earn a similar level each year.

Don't forget you can take off any pension contributions from the total income.

[MarkR]

(01-30-2017, 02:08 PM)johnboy1998 Wrote: Hi guys I have always paid direct maintenance to my ex but recently she has approached CMS my effective date for my case is 21/1/17. My question is:

My basic salary is 21500.

Ok they have taken my calculation from the 15/16 tax year where I had made myself I'll and was signed off with depression for three werks. My boss at time didn't organise work so was out all the time anyway it was no life. But was my choice I suppose

Anyway with a few months to go till the 16/17 tax year ends I will be on about 26k. I believe CMS won't reduce my payments due to not being 25% less.

I am confused with my options I have filled out variation form for overtime and commission and sent to CMS but I think my options seem to be:

Try to make 32k every year.

Stop all overtime so my basic salary is 21500 for the next again tax year 17/18. If I do this I need to live off my wage while paying CMS payments based on 32k for over a year or like I say I go and try make 32k again.  

Does the 25% go both ways, so if it was 39k would payments go up.

I was paying three hundred a month never missed a payment and was living off overtime. Now I just seem to be stuck whatever I do now.

Any ideas on what to do I offered her payment several times and feel like a bit of a scumbag stopping it but I payed income tax for every penny and then CMS work my payment on gross. What would you guys do??

Thanks

Normally CMS review a claim at the end of every tax year. Its based on P60 or Self Assessment Gross Profit in most cases, but where either party has applied for a variation of income it can change things.

The only time you can have it looked at again during a tax year is if
a, income changes either way by 25%, or a Qualifying Benefit is awarded as set out on this link http://www.gov.uk/calculate-your-child-m...ay/1_child
b, if you or a new partner has a dependent child (either of you must get Child Benefit).
c, if the staying contact arrangements change.

In your situation, you it does not appear to be a reportable change, so the next time you need to check things is once your P60 is Self Assessment is done for this tax year.  Once it is done, work out what you expect to get in 2017/18 tax year, and if its going to change by 25%, report it straight away.

[Drew65]

Do yourself one big favour.

Go to https://www.gov.uk/personal-tax-account and there you will see what the HMRC estimate will be and likely what they will base thier charging on.
Do yourself another favour and dont set your self up short just to spite her it won't work. Whatever the money you earn, including overtime, bonuses and Benefits in Kind, are accountable under tax laws and will be the figure HMRC send to CMS for calcs
Check my thread here http://www.separateddads.co.uk/forum/thread-2293.html for what they do by regulation and law, charge against to get the figure and also the calculation which will get you within a few quid.

Put this way mate.
I get x amount of money and they charge on top for the company car. I told them to get stuffed and they said they would start enforcement. Now .....without the company car my charge was 412 per month....WITH company car included 428 per month. For tax reasons my car added another 2800 or so to my tax bill and I was charged accordingly.
What I am trying to say, is for the hassle, grief and grey hairs, dont bother fighting them for a few extra quid per month.

Also.....your 25 % is NOT tax year its REVIEW year. I.e the year running on your case, not your tax account. As I explain in that thread, the CMS take the latest available taxable GROSS income figure from the HMRC when your year review is up and base it on that.
Yes you are correct and this is what I have maintained all along but some have disputed it, you will be charged against last years taxable income....and if that included overtime then you will get charged now.......but......if your money drops off (overtime is stopped lets say) then you still pay at last years figures on this years money and that can hurt. The CMS will tell you then,...."dont worry it will even out the next financial year"...which is all well and good when you have to live on the poverty line to maintain the figures because the 25% limitation  will be a probable no go area and have no effect on your circumstances....therefore ....according to CMS regulations...you get to work your poor little butt off to sustain the ex and whatever habits she has, whilst you have knack all to live off of....

Welcome to the CMS injustice system.

I tried fighting it and thy told me to poll my MP for they are the ones who voted the laws in in 2012 and they are the  only ones who can change it. I gave up going to the appeal tribunal because they only do it in.........Blackpool!....it would have cost me months of marginal change to my account to find out they are in the law and rights to do what they are doing...

I hate it...it sucks...and I vie the day I met that witch, I dont see my kids because of her and still work my ass off to appease her habits and there's nothing I can do except wish for the day my kids hit 20 years old and then I can move on with my life!!!

[Hazy]

There was a select review of how CMS is working very recently submissions closed on September 30th I just found out today.

What you all need to do or maybe the forum staff should do is look out for these things so that you can all have your say. But yes, please do write to your MP's, DWP etc etc

This round of consultation Gingerbread the single parent group are requesting on the basis that single parents cannot *cough* afford * cough* the £20 one off CMS fee that the payer should pay it and that they cannot also afford the 4% collection fee if payment is enforced that way.

You all need your voices heard.

[Drew65]

(01-30-2017, 09:28 PM)Hazy Wrote: There was a select review of how CMS is working very recently submissions closed on September 30th I just found out today.

What you all need to do or maybe the forum staff should do is look out for these things so that you can all have your say. But yes, please do write to your MP's, DWP etc etc

This round of consultation Gingerbread the single parent group are requesting on the basis that single parents cannot *cough* afford * cough* the £20 one off CMS fee  that the payer should pay it and that they cannot also afford the 4% collection fee if payment is enforced that way.

You all need your voices heard.

I get your intentions...

But for me and possibly a lot of others, shouting is blue in the face stuff....I did for years, got me nothing but a nervous breakdown and a suicide attempt..
The women come out tops and we get destroyed

[Hazy]

In all honesty when I read all your stories it makes me ashamed of some of my fellow women.

I gave my ex no grief whatsoever. He went on to have 3 other kids. His kids got loads from him for Xmas and stuff my kids were lucky if they got £20 each. I said nothing. They have contact with him ( they're grown now) and what makes my sons happy is fine with me. I don't know why other women cannot be reasonable.

One thing I will say is that when the kids leave education they've got a shock coming! When my kids left school tax credits stopped and my full time wage was less than what I was getting in tax credits. Boy! That was hard.

So if they get benefits and child maintenance they will go over the cliff edge unless they are remarried by then or have had other kids to someone else. They don't seem to see this.

Money can never replace love or get you happiness.