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Firstly I want to put it out their I am not in anyway disagreeing with maintenance payments just the unfair and flawed way it is calculated.
So after many years or paying CM via the CMS my annual review whacked on nearly £50 more this time, despite only a 1% income raise. After discussing this with them it turns out they don’t use your P60 to calculate (if someone could enlighten me as to why) but calculate off of the last few months payslips and then deduce that this is what you earn!!
so for me a one off bonus (company never pays bonuses) and a one off overtime payment in separate months apart justify their increase.
I asked for a reconsider but this has come back as a no as it was just under the 25% threshold
This is a flawed calculator as and my household costs go up, I’m struggling where as the ex now gets and extra £50 on top of the £220 she was getting a month.
how is this fair?!
and is there any Avenue I can go down to get the CMS to look properly and use common sense?
Firstly I want to put it out their I am not in anyway disagreeing with maintenance payments just the unfair and flawed way it is calculated.
So after many years or paying CM via the CMS my annual review whacked on nearly £50 more this time, despite only a 1% income raise. After discussing this with them it turns out they don’t use your P60 to calculate (if someone could enlighten me as to why) but calculate off of the last few months payslips and then deduce that this is what you earn!!
so for me a one off bonus (company never pays bonuses) and a one off overtime payment in separate months apart justify their increase.
I asked for a reconsider but this has come back as a no as it was just under the 25% threshold
This is a flawed calculator as and my household costs go up, I’m struggling where as the ex now gets and extra £50 on top of the £220 she was getting a month.
how is this fair?!
and is there any Avenue I can go down to get the CMS to look properly and use common sense?
Hi All,
I am new to this. Have been paying CMS (based on 2022 P60) for the last year year and 2 days ago had my first annual review. My income has not changed ( no mentioning of it increasing but less than 25%). I phone CMS to know that they used 2022 P60 instead of 2023 P60. they said they asked HMRC up to date information and they gave them 2022 P60. I do additional self- employed work so has recently filed a self assessment and the outcome was not my accountant expected so she contacted HMRC again and we waiting for final decision (the difference is only £500). so my question here is why CMS used 2022 P60? is it the untold rule that CMS uses the very first P60 unless receiving parent asked for income to be looked at? or was it just a mistake? or may be because my self assessment is not finalised yet? this is very important to me as I work in a city and live with kids in another city, I had to have 2 accommodations (CMS rejected variation request to support part of bills/ council tax) and excessive traveling expenses (CMS have not completed a 12 month old variation request, which when done will relief me of £50-60, while diesel cost is £400/m plus care expenses). I currently have a huge dept of £20K. I have the opportunity to increase income over 25% debts faster to clear my debt faster. but the increase in income will be marginally over 25%, so not sure if it is worth it. the receiving parent is a a high earner (her income is more than mine) so unlikely will actively ask CMS to check my income. Therefore, if CMS usually uses the very first P60 every year unless receiving parent contacts them I can increase my income without hopefully being noticed???!!
Thanks for the advice in advance!
Hi
Unfortunately it's just the way the CMS works, they average your salary out using 2 months of wages slips. In theory this should be the same as your declared salary, if not then they go with the new figure. They try to determine that you will be paid the same overall amount in the next 12 months (eg overtime/bonus).. If they didn't do this, then they wouldn't be including your bonus and overtime into your annual calculation.
Were the bonus/overtime paid just before your annual review? In which case, next year, see if your employer will delay payment.
I can't think of any further avenues, maybe another poster can advise.
All the best.
Hi,
The 25% is only in between annual reviews (e.g. if your salary goes up|down 25% in between annual reviews). They are lying to you. . Don't talk to them by phone as every person will give you a different answers. Send a recorded letter via post and demand a mandatory reconsideration as they have to use your P60. Send a copy to Arlene Sudgen and also to your MP. They will reply to you that it is not the correct process to write to Arlene but they will work on your case.
PS:
If you get a one off bonus or overtime it is better to put the money in your pension as it will affect your CMS calculation next year.
Regards
Thanks Guys, I'll go down the letter avenue. When I spoke to them they said that they use the last 2 months of payslips, which is wrong IMO. As a husband to someone getting CM from her ex I would be unhappy if she was getting less because he didn't work as much in the months leading up to his annual review to fudge his income, which he would do if he knew how they calculate it.
As for the overtime and bonus I couldn't put it into my pension as it shows straight on wage slip and the CMS get my wage slips from HMRC - this is their wording not mine
You have to be very firm with them. I am not sure if they don't know or they just lie. They have to use the P60 by law and the 25% is not applicable on the annual review. Regarding your pension, you are allowed to put the money in your pension. That is one of the few things that it is allowed to deduct from your gross salary for CMS purposes. Depending on your age and when you started contributing to your pension, you can put up to 75% of your salary into your pension and it is accepted by the CMS.
You have to be very firm with them. I am not sure if they don't know or they just lie. They have to use the P60 by law and the 25% is not applicable on the annual review. Regarding your pension, you are allowed to put the money in your pension. That is one of the few things that it is allowed to deduct from your gross salary for CMS purposes. Depending on your age and when you started contributing to your pension, you can put up to 75% of your salary into your pension and it is accepted by the CMS.
Thanks - have you got any where I can reference to say to them they must use my p60 so i have all the correct information when compliling this letter
Thanks
@edpacket Perfect, thank you. Now looking at the legislation it states that
Historic income – the HMRC figure
36.—(1) The HMRC figure is the amount identified by HMRC from information provided in a self-assessment return or under the PAYE regulations, as the sum of the income on which the non-resident parent was charged to tax for the latest available tax year—
So basically my P60 - am i reading this right?
Yes. They have to use your latest available tax year (your P60) as your monthly income fluctuates. If you have your P60 document, add it to your mail. I have found out that people will say anything by phone as there is no accountability but once they have to put it in written they are more careful, they double check. I never talk to them. I don't even answer when they call me and I have requested everything to be sent via regular post not even by the portal.
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