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I have recently have been offered by my company to work away with mynwages doubled ftor the months I am away.
I did this 2 year ago but the difference in the calculation by the CMS was only 23%, so they said I had to pay the increased calculation. My confusion arises when if I had earned another 2/3%, would they have been forced to agree to the recalculation of my normal salary, or because I have earned that money would I have to pay the extra amount.
This will make my decision, the money was helpful at the time, but the following year I struggled every month so it wasnt really worth it.
Does anyone have experience of this sort of situation?
hi,
when cms made you pay increased calculation because of your wage increase, did they work that out at the time of your annual review? if so then that's what they normally do, they just see your income records with hmrc. but later if your income drops by 25% then they should reduce your maintenance.
Yes, I worked away april to june, the calculation the following april came through as me earning 45k that year, but my true wage was 23% less than that so they wouldnt recalculate it.
But if I had earned say 47k and the percentage was greater than 25% would they have to recalculate it ? Or would they just keep it the same because I have already earned the money.
yes they go by their 25% rules, and would only make changes if your income increases or drops by 25% or more.
In that circumstance, you are so close to the 25%, you could increase your pension payments to take you over the 25% to get it recaculated. DOn't forget though, that 25% is only for a mid period recalculation, on the annual review it is done on your correct wage.
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