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Back-dating CM calc...
 
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Back-dating CM calculation

 
(@Will99)
Estimable Member Registered

My annual review is in November. For the review in November 2020 my most recent tax return was for the 2019-20 tax year. As my 2020-21 tax return does not need to be filed until 31st January 2022 it is possible that the same 2019-20 tax return could be used for the annual review in November 2021.

My question is - what happens if my 2019-20 tax return is used again for the annual review in November 2021, and then after my 2020-21 tax return is filed in January 2022 my ex- asks for the calculation to be looked at again in light of more recent income figures in that 2020-21 return ?

Quote
Topic starter Posted : 21/07/2021 2:50 pm
(@Daddyup)
Prominent Member Registered

Hi

If she does that then if your income has changed by more than 25% either up or down then they will recalculate for the year from Nov 2021, so you may have overpaid or underpaid and they will rework the figures through to Nov 2022. If the change is less than 25% then they will wait until your next annual review when they will be able to use the most recent tax return.. 

However, note that if your income has changed by more than 25% when you submit the tax return then there is an obligation on you to notify them of the change in your income.. 

 

 

ReplyQuote
Posted : 21/07/2021 10:34 pm
(@mysterytrip)
Active Member Registered

I have similar situation with annual reviews. 

CMS make their review in December, but my tax return is filed in January, one month later.  Ex, without fail, asks for a Mandatory Reconsideration, but nothing is changed as in past there has not been a + or - 25% change in income.  Also, as I work through limited company there have not been, so far, any periodic income checks made by the CMS as income for the year cannot be known until accounts are prepared.

Over time the payments will be corrected (up or down), but receiving parents may have to wait until the CMS system reacts.

Separate subject, but maybe COVID and the pingdemic as it is called has slowed down the CMS?  I received notice in early May that ex is going to appeal the CMS reconsideration made in March, but so far I have not received any details of the grounds of appeal. 

This is second time ex has appealed.  This first was in 2018 which was adjourned by the tribunal and sent back to CMS to explain why they had jurisdiction to make an assessment as I was working outside the UK at the time.  CMS explained correctly that as I was employed by a UK registered company they were entitled to make an assessment even if I was not UK resident.  Tribunal then dismissed the appeal in October 2019, 11 months after the appeal has been lodged

If the second appeal takes as long (it not longer due to COVID) it is possible that CMS will have made another assessment before the appeal is concluded regards the previous assessment!

 

  

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Posted : 22/07/2021 8:24 am
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