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Hello,
Can anyone out there please confirm for me the rates that the CMS charges for maintenance per child? I know that the rates are less than the old CSA, but they apparently charge on my gross income, rather than the net, which is what the CSA used to do. By the way, the using of gross rather than net figures is ludicrous and does not encourage one to work hard.
I have three daughters, but only one child still in the system.
Also, they get my figures directly from HMRC, so there is a fresh figure every year. Why do they insist that they can only change my liability if there is a change of income by 25% or more? This makes no sense.
Regards,
M.
hi,
On the basic rate, if you're paying for: One child, you'll pay 12% of your gross weekly income. Two children, you'll pay 16% of your gross weekly income. Three or more children, you'll pay 19% of your gross weekly income.
i think they follow the 25% rule to lessen the admin burden for themselves. otherwise they could be sending out letters to someone every time their income changes by £5 :p
I agree, I think it's so they aren't spending any more time on reviewing than they need to. If you income has reduced significantly, but not by 25%, you could increase your pension contributions to take you over that threshold.
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