Welcome to the DAD.Info forum: Important Information – open to read:
Our forum aims to provide support and guidance where it can, however we may not always have the answer. The forum is not moderated 24 hours a day, so If you – or someone you know – are being harmed or in immediate danger of being harmed, call the police on 999.
Alternatively, if you are in crisis, please call Samaritans on 116 123.
If you are worried about you or someone you know is at risk of harm, please click here: How we can help
Hi I'm self employed and I have recently had my annual review. And CMS has based my annual income on pay from all employments before any allowable expenses have been deducted. Is this correct?
My HMRC calculation is follows:
Pay from all employments £54000
Minus allowable expenses £16000
Total income from all employments £38000
Total income received £38000
Minus personal allowance £10600
Total income on which tax is due £27400
Can anyone give me any advice on which figure my CMS
annual income should be based on. I would of thought I should be based after allowable expenses.
What happens if in the future I end up making a loss does it mean I have to pay maintenance based on my total turnover?
Thanks to anyone who's could give any advice no matter how small.
Ps I spoke to the CMS and they said that is just the figure that the HMRC gave them that's all they can go off.
Thanks again
G24
Hi I'm self employed and I have recently had my annual review. And CMS has based my annual income on pay from all employments before any allowable expenses have been deducted. Is this correct?
My HMRC calculation is follows:Pay from all employments £54000
Minus allowable expenses £16000
Total income from all employments £38000
Total income received £38000
Minus personal allowance £10600
Total income on which tax is due £27400Can anyone give me any advice on which figure my CMS
annual income should be based on. I would of thought I should be based after allowable expenses.
What happens if in the future I end up making a loss does it mean I have to pay maintenance based on my total turnover?Thanks to anyone who's could give any advice no matter how small.
Ps I spoke to the CMS and they said that is just the figure that the HMRC gave them that's all they can go off.
Thanks again
G24
Hi
For self-employed CMS obtain figures from HMRC (i.e. returns) which detail your profits (calculated according to the Income Tax (Trading and Other Income) Act ITTOIA).
Basically its profits - as would be calculated by an accountant.
The system now calculates liability for CM based on the Gross system, and this means after pension(s) contributions.
You can see the legislation here
http://www.legislation.gov.uk/ukdsi/2012/9780111526132/regulation/39
There are extra provisions for seasonal income, of for when income changes by 25% or more.
Hope helps
Welcome to the DAD.info forum.
We don’t like to set ‘rules’, but to make sure that you and the other dads are kept safe, we have some requests. When engaging with the forum, please be aware of the following:
- The forum is not moderated 24 hours per day.
- Many of the moderators do so on a voluntary basis. Whilst they may be able to provide some guidance, advice or support, they may not be able to deal with specifics.
- We are not an emergency crisis service so if you or someone else is in immediate danger, please call emergency services.
- If you are concerned about the safety of a child, please click here to find the support you can get for them (link to new page)
- If you are in crisis, please call Samaritans on 116 123. They are open 24 hours a day, 7 days per week.
We hope you find this forum a supportive environment and thank you for joining us.