[Solved] CSA and overtime

Hi Bobbya,

IIRC, it is only a requirement to notify CMS of a change if the amount increases or decreases by 25%. If you find that you are gaining overtime consistently then it would be perhaps reasonable to notify them, but only at your discretion (subject to the 25% rule)... otherwise they will just take into account any fluctuations when they look at your P60, and readjust next years claim I believe (how mine worked).

Hope this helps.
BD

If last year i reached that 25%
what would happen then as its not gauranteed that I will reach that much again this year?

As you say, it isn't guaranteed.
If your figures are over, then they should just recalculate the liability and add that to the following year I believe.

I think the CSA will take an average over at least 3 payslips. You could put your overtime payments into pension (seems a perfectly valid way of boosting your pension to me) which would keep your figures down this year.

They simply look at your p60 from the previous year then do their calculations of that then next year do their calculations off this years.

They simply look at your p60 from the previous year then do their calculations of that then next year do their calculations off this years.

.. can't you ask them to re-assess if your income has changed by more than 25% though, and then produce 3 consecutive payslips to confirm?

Ok so if I understand correctyl
they will each year look at your P60 for your total gross pay (which will include overtime)
and base the payments for the following year on that.

So for example, P60 in July 2014 will dictate the percentage paid for CSA for July 2014 onwards
That amount on the p60 is what I earnt for the whole year.
Do they then take the p60 amount and divide that by 52 to get your weekly gross income?

If thats the case and for 3 mths after this, my overtime is less I can call them and explain this and say I want the payments re-calculated?

Do they always check your p60?

What happens if you don't declare the +25%?

Hi Bobbya,

My renewal is completed each November. When the last renewal came along, they contacted HMRC and obtained the figures from my P60 and used that as a base point.
From there I sent in my last 3 payslips (as I was earning a bit more, but still under the 25%) they then amended the amount accordingly (upwards by a few quid)

So, as Slim said, they can just work it of your P60, though equally as mentioned by ACTD, you can send in payslips to confirm amounts.

It's a bit of a grey area with overtime, I would suggest you give them a quick call to clarify whether non-guaranteed overtime is accountable.
My feeling would be that, as the overtime is not guaranteed, you shouldn't have to notify them - unless of course you think it's going to push you above that 25%, and they'll just sort it out at the next renewal. If it is likely to take you over the 25%, i'd just bite the bullet and notify them to save any possible hassle down the road.

They will always check your P60 and other HMRC records during your review, to make sure you're paying the correct amount.

The calculations are: gross figure earned (less pension contributions etc) / 365 x 7 = weekly earnings.
This figure is then used to calculate your maintenance liability (also calculated to a daily rate via CMS)

I have recently begun covering the business as an on-call, which I get paid a % of my salary as an hourly rate for whilst on-call... Because the on-call fluctuates, and isn't guaranteed every week/month, I haven't notified the CMS. IF it becomes a regular occurrence (once a month etc) then i'll tell them, just to ensure i don't get screwed over next year...

Just remember that it might be better to notify and lose a few quid this year, than to hold off till the next review and find out you're paying a couple of hundred in backdated on top of increased liability for earning more.

All the best,
BD.