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I’m a paying parent of CMS, but feel the way it’s taken is like getting taxed twice.
For example.
if I pay £400/month CMS this is calculated from my top line pay. I then have to pay tax & NI on this, so the payment is more like £480-£500 (20% tax + NI). All the while the recipient does not pay any tax on this.
im wondering if I change to collect & pay will this come off my wage before tax or still be the same as above.
Not against the paying part, it’s the double punishment on Tax.
Any comments welcome
hi,
you will likely be worse off if you move to collect and pay. you will pay extra 20% collection fee.
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