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CMS, Pensions and H...
 
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[Solved] CMS, Pensions and HMRC

 
(@Bluewater)
New Member Registered

I'm seeking clarification on pension benefits from a Civil Service Pension scheme and if they are considered when calculating child maintenance.

The payments will be less than my personal allowance of £11,500 so aren't taxable but would the CMS still consider this, as its non taxable income give its below the threshold. Adding to the confusion HMRC apparently don't classify income from pension plans as relevant UK income and not elligible for tax relief when re-investing into another plan.

Also I'm considering registering as self employed with HMRC at the same time as I access some of my pension, though income is likely to be ad-hoc so how would that be dealt with by the CMS. I currently don't have any income following redundancy, so am on a zero contribution.

I'd appreciate any comments or clarification.

Quote
Topic starter Posted : 29/05/2018 9:43 pm
 Mojo
(@Mojo)
Illustrious Member Registered

Sorry I can't help with this one, but someone with some know how on this should be along soon.

ReplyQuote
Posted : 29/05/2018 11:16 pm
(@dadmod4)
Illustrious Member

Your pension will be counted for child maintenance as far as I am aware - there is a difference between taxable and paying tax insofar as below £11,500, your income is taxable, but the personal allowance is an allowance against paying tax. With regards to investing your pension into another pension, it becomes more complex - the reason there are limits is that you may have probably received tax relief when contributing to the first pension, so by investing this into another pension, you would be doubling up on the tax relief. You would be well advised to speak to pensionwise, though they can only explain the technical side of what is available, and not give financial advice, but it is a free service.

ReplyQuote
Posted : 31/05/2018 1:16 am
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