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CMS Case and Redundancy
#11
(12-13-2017, 07:07 PM)MarkR Wrote:
(12-13-2017, 06:41 PM)Reefman Wrote: Thanks again for your time and patience in replying.

One final point, in your penultimate paragraph you talk of liability in case year and a pay increase.

Firstly the extra income isn't a pay increase its a one off payment - am I right in assuming it's just seen as an increase until end of case year?

Secondly, say this one off increase is £1200 am I right in thinking my additional liability would be  (1200*16%) /52 multiplied  the number of weeks to end of case  year equating to £3.70/wk so a total liability of £18. 50 over 5 weeks.

And not 16% of £1200 / no of weeks to end of case year ie £38.40 over 5 weeks a total liability of £ 192

As this makes a big difference

Many thanks

At first your child support is worked out over your case year, and then updated every year  UNLESS

1, Your Taxable income is going to Increase by 25%, and this is considered from the date of the change, in this case your redundancy.
In your case, the higher amount will kick in from the date of this change, until the end of your case year.

2, If a decrease of 25% is known, the change applies from that date.
In your case, this is day 1, of your next case year.

3, If you go onto a Qualifying Benefit, your liability is capped at about £7 per week with no staying contact, Nil if you exceed 52 nights a year.

Example, to keep number simple
Income over the case year Jan 1-Dec 31 being paid on current earnings of £15,600 per year, £300 per week.
Dec 2, you get redundancy, meaning your estimated income for that case year is now going to be £25,000, £480 per week.
From Dec 2 your payment would be based on weekly income £480, up to Dec 31.

Your renew would be at £25,000, so on Jan 1, you would then report the drop of over 25% if you was not going to exceed £18750 per year.
Therefore, it would recalculate to be at the current weekly income rate.

Thanks that all seems strtaightforward enough. I think whats confused me is that as the extra is payable in my March salary I've been thinking that whilst salary has gone up at that point its also dropped to zero at the same point as my March pay will be my last and my salary will be zero from that point ie no pay in either April or May.

I now understand that I'll pay an increased amount for the period from 1st April to end of the case year in early May after that if I've not found a new job the rate would be zero from the payment due in June as I wont have any income and remain that way until I do.

Thanks again for your patience and time
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