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Impact on Child Mai...
 
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[Solved] Impact on Child Maintenance calculation of investment property tax rules

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Posts: 142
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Topic starter
(@Will99)
Estimable Member
Joined: 6 years ago

@andrew8282

My HMCTS appeal hearing date is finally set for next month, so I will have an update after that. However I suspect that, as I am essentially complaining about the unfairness of the rules rather than a failure of CMS to correctly apply the rules, that there is little that HMCTS can do even if they agree with me. I suspect this is an issue on which to lobby my MP to take up on my behalf, which I have done but my MP is saying he can’t really do anything about an issue under HMCTS appeal until that appeal has run its course.

It’s like wading through treacle - it is 18 months since I first lodged my appeal, and even if I did end up going through my MP and via that method managing to get this unfairness recognised and a change applied then I don’t think it would impact me because both children will have dropped out of the CMS case at the end of the current school year. I may still pursue it however, as I do think that if the CMS rely on HMRC information then they should also be aware of changes within HMRC which impact the information they rely on and make any changes accordingly.

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(@johny-5)
Joined: 2 years ago

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Posts: 4

@Will99 Thanks for getting back so soon. Im sure you have experienced the countless calls to CSA HMRC etc regarding this,  I wont bore you with the conversations had,  but think as your so far forward with your case, please carry on.  Im only Just starting this Journey, so would be great full for the updates, and I will endeavour to do the same.  I have another 6 years.  I will be going for the change!!

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(@Will99)
Joined: 6 years ago

Estimable Member
Posts: 142

@andrew8282 

I would suggest approaching your MP and explaining the issue. The more people that do that, the more pressure there will be on DWP at least to understand and acknowledge the issue, which they will have to do first before they agree any changes are warranted. After all, why should landlords with Buy To Let mortgages be uniquely singled out for higher Child Maintenance payments ? It doesn't make sense, but it is not the easiest thing to explain.

In my explanation to my MP I took time to explain the HMRC changes (with references eg. to  https://www.gov.uk/government/news/changes-to-tax-relief-for-residential-landlords ), how they impacted my Child Maintenance calculation, and also my suggestion for fixing the issue - i.e. if the CMS already use HMRC data, then they can deduct from the overall gross taxable income from property figure the amount of undeducted property finance costs that is included therein - with the remainder being forwarded to the CM calculation. 

I can give you a copy of my letter if you like (I presume I can do that somehow ?)

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(@johny-5)
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Joined: 2 years ago

Hi will.

 

Thank you, you have explained the situation very well in your letter. As you say its a tricky one to get across.

I have copied your letter and have sent it to my local mp, and have chased them up,  they are now going to send it to the relevent department, so will await a response from them in due course. 

Going to try the local paper, see if i can get the story printed.  fingers crossed

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(@Will99)
Joined: 6 years ago

Estimable Member
Posts: 142

@andrew8282 Oh yeah - this has been running so long I forgot that I had already quoted my letter in this thread ..

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(@johny-5)
Joined: 2 years ago

New Member
Posts: 4

@Will99 Hi will, Hows it going mate?  How did your hearing go?  not much this end, still waiting, so frustrating,, arghh

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Posts: 142
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Topic starter
(@Will99)
Estimable Member
Joined: 6 years ago

@andrew8282

My hearing went very badly. The tribunal have upheld the variation (and two other variations I was appealing against).

They quoted the regulations which state that it is the amount of taxable income that is to be assessed. They also seemed to suggest that another factor in their decision was that if my appeal was allowed it would impact not just myself but all other NRPs who were landlords with property finance costs.

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(@philsubscribe)
Active Member
Joined: 3 years ago

I was watching this to see what the outcome was. I guess in some ways this was likely to be the result because the law states exactly what the judge said and the judge is there to interpret the law, not change it - whether it's fair or not.

Sorry to read you've been through all this and had all the delays. As I said in a previous post, my ex will receive more property income than I will. C'est la vie.

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(@bigal75)
New Member
Joined: 2 years ago

Hi, I am in the same situation in 2023 whereby csa don't recognise finance expenses in the maintenance calculation and they are not interested in my reasoning at all. This has meant that based on 20-21 SA figures I am paying my ex twice the amount I earned in net rental income that tax year. A very unfair side effect of the changes to the HMRC changes in taxation rules years ago. Has there been any progress with regards to the earlier debates/ requests through the MPs. Would appreciate a response as I am seriously considering taking my case to the independent tribunal, but just read they aren't much use either? Has anyone had a good experience with the tribunal relating to this subject?

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