Hello. Realise this has been asked before but, conscious that the law is always being tweaked, thought I would ask an up-to-date question specific to my circumstances.
Am self-employed and have been paying CM for a number of years. My earnings have been genuinely quite low over the years and I have usually subsidised them with funds from personal savings.
My father passed away almost four years ago, leaving me with property that I let on Airbnb and a substantial amount of savings (almost six figures).
2021-22 was the first operational year of my Airbnb let and because of startup costs only registered a small profit. This year, however, combined with a massive downturn in my main business, the Airbnb has become my main source of income. Similarly, with the increase in interest rates, my father's savings have started to earn worthwhile interest.
All three items are declared on my soon to be filed tax return:
A. self employment
B. income from property
C. interest from savings
As an aside, I have been using a new bookkeeper this year and she seems to have completed the tax return in a slightly different way, which has added to my confusion!
What figure will the CMS use as a basis for their next CM calculation?
A?
A + B + C?
Some other combination or portion of combinations?
I'm a little concerned that if solely A, given my main business's poor year, this will create an artificially low figure - and then my ex, who I split from 12 years ago, will protest and I'll end up getting collared for a proportion of my father's property.
Thanks for any replies! 🙂
Hi,
By default CMS would see your net income (total turnover), after expenses deducted, and calculate payments based on that.
And usually it would be left to you to declare the additional income from rental property, or if your ex is aware and asks them to include it in your maintenance payments. For a long time now CMS have been planning to automatically include all this kind of income information when they do annual review for paying parents.
I recommend you join this support group for paying parents: