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Hello
My ex has put me back on CMS for the 3rd time even though I've always paid her and helped if we are together or not but this time I have had backpay of 20K before tax on 15/10/24. The CMS case was opened 18/10/24, because it was before I'm guessing I don't have to tell CMS. Would it be included in my next review if the case was not opened yet. I'm worried they will add 20K next time even though I don't earn that it was one off. She will be trying her best to get more as the CMS payment is lower then what I spent when we was together.
hi,
CMS will check HMRC what your income was for most recent tax year, 2023/24. they will go off that. they do state that you should tell them if your income has gone up or down by 25% or more.
@dadmod2 hello thanks for the reply
do I need to tell them about the backpay if I got it before the case was opened? If they tell me at my next review that my salary includes the extra backpay can I tell them it's gone down by 25 percent and get the payment changed as the backpay was a one off
yes you could wait for the next annual review. then by then if your income dropped by 25% they can reduce your payment
I wouldn’t be telling them anything right now. The case was opened after you received your back pay, so there hasn’t been a variation in income since case was active.
Hang onto that money though as CMS will calculate again at your next annual review and will include that back pay.
That is the time for you to push back showing your earnings are now £x (provided this is 25% below what they have as your 2024/25 income
@hisdadness that is exactly what I was hoping to do thank you
@hisdadness would I be able to do overtime up until April where the new tax year starts to make sure it goes over 25 percent added with the backpay, I'm pretty sure it would be anyway.
do you no what evidence they need for 25 percent decrease thank you
Hello,
The case will genrally start with your last full tax year provided by HMRC. So 2023-2024.
Your saying the back pay was paid with in the current tax year 2024-2025. (Paid by an emplyer so subject to income tax recored by HMRC).
1. If your ex partnet knows about the sum, she can put in a request to have it included in a recaculation as a variation, given it is income.
2. You are legally obilgated to report a change in weekly income + or - 25%. Agaist there current figure. That is likley to be perminent.You have 28 days from the change to do so.
3. At your next Annual reveiw 18/10/25, the CMS request your income infomation from HMRC 30 days prior to your reveiw date. It the only time they can request this infomation with out a legal reason to do so, like you stupidly say over the phone "I don't earn that go have a look".
then carry out an assesment in line with the Child Manitance Caculation Regulation 2012. Chapter 1, regulation 34 ect. They take the Annual gross income figure provided HMRC for 2024-2025 / 365 days and * 7. To establish a weekly income figure, for the purpose of a caculation.
They then see if the figure exceeds by more or less the 25%, of the weekly income figure they currently use to caculate your maintence. If there is no 25% diffrence under the legislation, your historical income becomes your defult income figure. They caculate acordingly.
If there is a diffrence, They look at why Chapter 1, regulation 38. They may see it was a one off payment (Like a bonus) inwhich case it is, separated from your regular gross. £20,000 / 365 * 7 = £383.56. Then the £383.56 as a weekly avrage is added back ontop of your reguler income, then your liability caculation is carried out.
At basic rate:
1 child 12% = 383.56 / 100 * 12 = £46.03 extra maintance a week (On collect and pay 46.03/100*20=£9.21 in collection fees per week)
2 child 16% = 383.56 / 100 * 16 = £61.37 extra maintance per week
3+ child 19% = 383.56 / 100 * 19 = £72.88 extra maintance per week
4. They may be in a bad mood, inwich case they look at it as undeclared income. Carry out a backdate, to when they belive you should have decalerd it, and started paying for it. Load up your arrears, and make an assesment moving foward on what they deem to be your current income. In which case the burdon of proof is on you, to prove the same people wrong, who made that decision in the first place. (Stress!).
Its like this, they are going to see it from your HMRC infomation any way! They are going to have there peice of it regardless! They cannot charge you for the same income twice. But they can estimate to prevent a build up of arrears, as they would if you say, changed jobs for a higher income they are permited to do so with in the legislation.
I hope that helps a bit.
Good luck with what ever you decide to do.
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