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pensions query
#1
hi know will need solictro or proper accountatnt answer but wanter quicker anser if anyone knew

about to retire and i pay child maintenance (in Uk)

pension would be lump sum and monthy income

i can chosose to some extent size fo lump sum

does anyone know hwo cms is applied to lump sum???

does it pay to take largets or smallest amount?


lumpsum is one off payment

tahnk u for any help
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#2
(12-09-2017, 08:15 PM)ronjohn Wrote: hi know will need solictro or proper accountatnt answer but wanter quicker anser if anyone knew

about to retire and i pay child maintenance (in Uk)

pension would be lump sum and monthy income

i can chosose to some extent size fo lump sum

does anyone know hwo cms is applied to lump sum???

does it pay to take largets or smallest amount?


lumpsum is one off payment

**just adding is only child maintainainenance quest, no alimony involved

**just adding - exasperated - is it not amazing csa site so faulty as not to give this sort of info as standard, i see question raised on google but rare answered authorirtativelty - HOW DID WE BECOME SUCH DOORMATS?

tahnk u for any help
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#3
(12-10-2017, 09:19 AM)ronjohn Wrote:
(12-09-2017, 08:15 PM)ronjohn Wrote: hi know will need solictro or proper accountatnt answer but wanter quicker anser if anyone knew

about to retire and i pay child maintenance (in Uk)

pension would be lump sum and monthy income

i can chosose to some extent size fo lump sum

does anyone know hwo cms is applied to lump sum???

does it pay to take largets or smallest amount?


lumpsum is one off payment

**just adding is only child maintainainenance quest, no alimony involved

**just adding - exasperated - is it not amazing csa site so faulty as not to give this sort of info as standard, i see question raised on google but rare answered authorirtativelty - HOW DID WE BECOME SUCH DOORMATS?

tahnk u for any help

You should get this checked by your own expert, but my take on it is

a, it might result in an increase over 25% in your current case year, meaning on the day you get the funds, you need to report it.

b, on day 1 of your new case year, you would report a decrease of 25% if it was going to happen, so your payments then would just be based on your ongoing income

To sum up, you would have to pay more from time of getting it, until the end of your case year, if taxable income goes up by 25% or more
Posts made by me are my opinion and any factual information should be checked out. If you do not have a Solicitor, often your local CAB can get you some initial advice.
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#4
i saw lots of qs like this on intenet with diff answers but nothing concete and tried CMS who say lump sum not subject to assessment - if that of intrest to any readers?
however this is becausethey say it is tax free? funny logic threere surely? if you earned around £11k u would not pay tax but would pay CMS so buyer beware on this info.

However saw the question set by some ex army guys who seemed to get told same thing before retiring and tehn get diff story afetr retiring with bad affect on there pensions so not so good there, so please be wary of my info just retelling what i have found no concrete news, sorry

however i did try the alternative cms helpline site andthey say the same thing. (these peopel https://www.cmoptions.org/  these peopel very friendly and trying helpful) but again hard to see anything nailed down and on retiring and getting last mone y ill ever have i would ever have id like to see something much more concreet. 

Disappointing but not unexpectred with cms website themslevestaht everything so hidden and secretive but perhaps jsut incompetent? eithr way could be expensive mistake for me and others if they are able to say one thing and then change change there minds after ive comitted to retiring

My foollow up q, sorry sure this is answerd elsewhere, but grateful if some pointer as i trued to search and got nowhere locally, i think i need to talk to solicitro and/or accountant familiar with ways of cms (i mean paying for these services of course) and wonderd if anyone recommended in kent/ south east

i am wondering if only way iss olicitros letter to get a gurantee about role (sorry not right word i know, just me these days but u know what i mean i hope) of lump sum relative to ongoing pension mpnthly payment as i can choose to vary these amounts to soem extent and if would certainly better to have bigger lump sum if it wasnt attacked in same way as monthly income. Either way now id liek to knwo forsure.

(sorry sound miserable old git, but ex goes extreme lengths to keep me form even contacting children so not over eager to libe her pcokets with my pensuion, not sure they see much themsleves.

Thank you
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#5
If the size of your lump sum is exactly 25% of your pension pot then it’s tax free so should not be counted as income. It won’t ahow up on your P60.

You could look into transferring some to a SIPP and use drawdown rules perhaps ?

You need a pensions adviser rather than an accountant most likely.

Anything over 25% is taxable so probably counted as income in that year that you receive it.

Not a lot of information to be found on this really.
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#6
(01-03-2018, 11:07 PM)Hazy Wrote: If the size of your lump sum is exactly 25% of your pension pot then it’s tax free so should not be counted as income. It won’t ahow up on your P60.

You could look into transferring  some to a SIPP and use drawdown rules perhaps ?  

You need a pensions adviser rather than an accountant most likely.

Anything over 25% is taxable so probably counted as income in that year that you receive it.

Not a lot of information to be found on this really.

If the Lump Sum is Tax Free that it can not be considered for Child Support, as its only Taxable Income.
The variation rules only cover payments made into Pensions, as it reduces Taxable Income.

The reportable changes of income cover the Taxable Amounts, not where the income comes from, for example a change in job, on in this case a Pension.
In a CMS Situation, you need to find out when your case year starts and ends, and look at your income in that period only.
If it goes up by 25%, you need to inform them.
If it does go up, then on day 1 of the next period, you will also need to work out what your income was in the last case year, and estimate what it will be in the new case year. If this is a 25% drop, you need to report it straight away, so your not making ongoing payments based on the higher amount.

However, if Tax Free and you was married, this lump sum could still be considered as an Aset from the relatinship, and she would have a claim on half of its worth, from during the relatinship only, minus half of any Pension she gets or will be getting from while in relatinship.
Posts made by me are my opinion and any factual information should be checked out. If you do not have a Solicitor, often your local CAB can get you some initial advice.
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