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Hi all, wonder if anyone can please supply advice; I have just started paying CMS payments. Obviously, since the changes, it is calculated on my gross not my net, which seems unfair, but, that is something us Dads all have to live with I suppose.
My question is, I have to pay tax, on my earnings, but, my CMS is given free of tax o the resident parent. Is that correct? I have searched the web high and low but cannot find any reference to this.
Many thanks for all your constructive inputs.
Hi There,
.
This is correct the payment is made to your ex and it is tax free she won't pay any tax on it. You will have paid the tax on the money already
.
GTTS
Obviously, since the changes, it is calculated on my gross not my net, which seems unfair, but, that is something us Dads all have to live with I suppose.
This is very inaccurate on 2 counts:
1)The CSA calculated maintenance as 15% of NET wage.
The CMS calculates maintenance as 12% of GROSS wage.
So for someone earning £25k:
- under the CSA they would pay £58.50 per week.
- under the CMS they would pay £57.69 per week
Exact case details will change how this picture looks - however it is a ill-informed thing to moan about.
Yes the calculation changed from NET to GROSS - but so did % so the point is really irrelevant.
2) It is something that all Non Resident Parents have to live with. Not all NRP's are dads - some are mums as well. The percentage may well weighted towards NRP's being dads but the fact remains that this is something NRP's have to deal with not just "dads" - and as pointed out in point 1 it is not really anything to deal with at all.
[quote="DannyBoy03" post=88471
My question is, I have to pay tax, on my earnings, but, my CMS is given free of tax o the resident parent. Is that correct? I have searched the web high and low but cannot find any reference to this.
Earnings are never taxed twice - this includes gifts to friends etc for wedding gifts etc. Some income that a person gets is counted as earnings - some is not.
Money the a resident parent receives is not.
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