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[Solved] CMS Recalculation

 
(@BillyBob)
New Member Registered

Hi,

Not sure if I've got any recourse here, but I've just had my new monthly amount sent.

This was based on tax year 18/19 in which I was paid £48.5K for 9 months work.

I was made redundant in Nov 2018 and didn't start work again until April 2019.

I took a job that pays £37.5k a year

Due to my payments being worked out on £48.5k and as £37.5k isn't a reduction of 25% apparently thats ok and I have to pay the greater amount.

When I originally started work they based my payments on a much higher amount and a mandatory recalculation was granted based on the £37.5k

has anything similar happened to anyone else ? Do i just have to live with it ? I know I could increase my pension contributions, but that seems a bit underhand.

Thanks

Quote
Topic starter Posted : 21/02/2020 7:17 pm
(@hrabbit)
Estimable Member Registered

Its not underhand to increase your pension payments to get to the correct amount of CM. If you are being assessed on 48.5k and only earned £37.5K then you are overpaying on what you should be assessed at. So if paying extra into your pension brings you down to the equivalent of £37.5K then it is correct and not underhand.

Note I say if it brings you down to what you should be paying, not less 🙂

ReplyQuote
Posted : 21/02/2020 7:45 pm
(@dadmod2)
Illustrious Member

hi,

when was your review date?

25% of £48,500 =£ 12,125

£48500 - 12125 = £36,375 v your salary of £37,500

so they are right i guess, as you went over by £1,125

not much you can do , other than pay more into your pension. or take a lower paying job next time. do your kids stay overnights with you? if so, are CMS taking that into account?

ReplyQuote
Posted : 22/02/2020 9:43 pm
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