[Solved] CMS Review & Pension

hi,

thats not fair. really they should take your pension contributions into account and reduce your amount. what you should do is ask your workplace for a letter, stating how much you are paying into your pension. also send this to CMS along with some payslips, showing how much is going into your pension. then ask them to re-calculate your payments. send them copy of your employment contract if you have it.

log into your self-service account and send all of this to them, by sending them message and uploading documents:

https://childmaintenanceservice.direct.gov.uk/iam-las/public/provider/interaction/6VuT2vMH310W-jo6xBMJb

one thing to check on CMS paperwork they gave you, does it mention any arrears?

Hi

Thanks for the reply.

There is no arrears. I have always paid on the nail, never missed a payment.

When I last spoke to the CMS they said that unless the pension equated to a 20% difference in my wage they would disregard it it any way.

I argued that that can't be correct as the amount they have started with is incorrect any way.....the guy was having none of it and said it wouldn't make any difference.

They really are not helpful!

hi,

this is from their own guide:

page 9:

Q: How do pension contributions affect the paying parent’s income?

A: Gross weekly income is reduced by a paying parent’s contributions
to an occupational pension scheme (sometimes called an ‘employer
pension scheme’) or a personal pension scheme (sometimes called a
‘private pension scheme’).

If the contributions are made to the employer’s pension scheme, the
employer will have already taken this into account when working out
the paying parent’s taxable income. We will use this information when
working out the amount of the child maintenance payments. This
means the paying parent does not need to tell us about contributions
they make to occupational or employer schemes.

But we need to know if a paying parent pays contributions in another
way, for example by making payments direct to a private pension
scheme provider. This is taken into account in Step 2. For more
information on how private pension payments affect how child
maintenance is worked out, see page 12.

If you are not sure which pension payments you should tell us about,
call us on 0345 266 8792*.

page 12:

Payments into a pension scheme made by a paying parent

The amount of gross weekly income at Step 1 is reduced if a paying
parent pays contributions into a private pension scheme.

For example, if a paying parent has gross income of £300 a week at Step
1 but pays private pension contributions of £20 a week, the amount of
gross income we now take into account is £280 a week.

Remember that contributions to an occupational or employer pension
scheme by deductions from pay are usually made by an employer. If
this is the case, we will have already taken these into account in Step 1
and the paying parent does not need to tell us about them.
But a paying parent can tell us if they pay their contributions in another
way – for example, direct to a private pension provider.

If a paying parent makes payments into a private pension scheme, we
will usually reduce the income figure we use by the full amount they
pay, including the value of any tax relief

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/672432/how-we-work-out-child-maintenance.pdf

Seems to me they have made a mistake, but because to rectify is not more than a 25% differential, they are saying they wont rectify the mistake they made in the first place........it stinks!

Hi

You quote from the CMS:

"If the contributions are made to the employer’s pension scheme, the
employer will have already taken this into account when working out
the paying parent’s taxable income. We will use this information when
working out the amount of the child maintenance payments. This
means the paying parent does not need to tell us about contributions
they make to occupational or employer schemes."

What exactly does it mean that my employer will have taken this in to account?

When I log in to the .gov.uk website to see my annual HMRC declarations from my employer (that the CMS use apparently) it is my full gross wage of £35860....

Is this then incorrect?

If you employer is paying into your pension directly then this should already be removed from your salary calculation and therefore HMRC should see Gross less Pension.

If you are contributing personally to a pension, you will have a full salary from your employer and then you will have to show CMS that you are paying into a pension and they should deduct it from your salary calculation for assessment.

So should be £35,860 minus your pension = net to HMRC, or £35860 and then you show to CMS that you have paid X into your pension.

Thanks again for the replies.

Forgive my ignorance but how on earth do I sort this mess out without the ability to talk to any of the agencies involved (my case is not a priority given the current circumstances).

I can talk to my payroll department on Tuesday but I can’t imagine they will have a clue how to help.

hi,

i think your HR/payroll team should be able to help, as they submit your income details to HMRC. if they have made a mistake, then they can adjust the information. i dont think theres much point talking to CMS for now. they only go by what they see in HMRC tax records.

i started a new job recently, and i dont want to opt into a pension. it will reduce my maintenance payments, but then i don't see that many for years on end.