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Hi,
I'm new to this forum, and after some advice. I can't find anything that deals with this specifically elsewhere so maybe someone here knows?
I'm going through a "clean break" divorce with my ex and via a mediation firm, rather than the full-solicitor experience.
As such, my maintenance payments aren't being formally calculated by CMS, but I'm using their calculator on the GOV.UK website in the interests of doing the Right Thing (the ex approves of this).
However, I've just got a new job which comes with some benefits, so my question here is when the CMS calculator asks for my total taxable pay, what *exactly* does it mean? The context causing my confusion is I get "free" but taxable healthcare. So on top of my base salary, I receive an additional amount covering my healthcare on the left side of my payslip, which is then subtracted again on the right side of my payslip. I'm taxed on value of the healthcare, so the amount of tax I pay is greater than if I didn't have the healthcare. I'm hoping that anyone who can give advice will understand what I'm saying here!
I also have a salary-sacrifice pension, which I know is subtracted from taxable pay for CMS calculations.
So if my salary is S, my Pension is P, my benefit-in-kind value is B, then CMS salary must either be S-P, or S+B-P ... but which one?
I'm hoping that CMS are only interested in money I actually "see" for myself, but I fear that because I have a taxable benefit, they include the benefit-in-kind in the amount I'm effectively paid. I'll resent this if it's the case, because it's not tangible money... it's not money I have the option to spend as such, it's only being provided to me so it can be taken away immediately. I feel this must be a common question but I can't find anything that deals with it specifically.
Thanks in advance,
Mark
hi, with CMS calculator you should just enter gross income. if you want detailed assessment , then CMS would do it. I hear they take benefit in kind into account, and people having to pay more because they receive allowances for company car etc.
I recommend you join this support group for paying parents:
https://www.facebook.com/groups/239699060076601/?ref=share
Hello Mark,
(If your ex has not opened a case against you. Open one against your self. It gives you more control over the case, and its not a hammer waiting to fall. Just a thought!)
Right the Math:
Annual Gross Income figure / 365 days * 7 days give you the weekly gross income figure they use.
As you pension is a "Net Pay arrangment" (Salary sacrifice). Any figure reported to the CMS by HMRC, will already have your contribution amount deducted. as it is not included in the Gross income figure, when reported by your employer to HMRC. (Basic explination).
If it was "relivable at source" you would have to report this separately to the CMS.
Which brings us onto your health care. This has to be claimed separately by asking for a variation of income from CMS.
The variation if accepted, would be deducted from the weekly income caculation they use, before the caculation of your liabilitys.
Take the remaining weekly figure / 100 and times by the persentage for number of children.
(Basic rate is 12% 1 child, 16% for 2 children, 19% for 3+. The basic rate plus caculation is a bit diffrent as far as the % you pay).
So 2 kids would be: Weekly income / 100 * 16 = Maintance Liability, per week. (/ by 7 * 365 / 12 for a monthly amount).
I hope this is useful to you.
Cheers and good luck to you.
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