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Cms annual recalula...
 
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[Solved] Cms annual recalulation

 
(@Sparkydel)
Eminent Member Registered

I split with the ex around Christmas. I am currently paying via cms starting with an effective date of 27th may.

As I am self employed it usually takes my accountant around 6 weeks until they notify hmrc of my yearly income to April 4th. I get my accounts in as soon as the financial year is up but it doesn't actually need to be until January 31st the following year.

My question is what date will the cms use for my annual recalculation. 27th may? January 31st or when my accounts are registered with hmrc.

The reason I ask is that I have started a pension (I have minimal pension provisions) this month and I would like to know when this will kick in in regards to reduced payments

I know about the 25% for variations but I doubt my annual gross income will go down by 25%

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Topic starter Posted : 25/08/2019 3:01 pm
(@hrabbit)
Estimable Member Registered

My accounts are end April and CMS recalc on April 28. They write to me on about the 4th April. They use my P60 on file at that time for HMRC. Even though I told them I have earned more and my pay slips to end March show it, they will only take what HMRC has into account.

Beware though, if your ex then asks for a later reconsideration and HMRC figures have caught up, they will likely recalculate it. They did for me even though the 25per cent had not been breached.

Even though I think I now know all the rules and regs, they still make unexpected decisions.

ReplyQuote
Posted : 26/08/2019 10:48 pm
(@dadmod2)
Illustrious Member

hi,

as your self-employed you have more leeway. my tax year ends 1st april and have 9 months to do accounts and pay corporation tax. CMS asked me if my accounts are ready. I said no, as I will have to pay accountants when am good and ready and i can afford it. So they just asked for info from last tax year. my review date will be around same time 1 april 2020. i will give account info for 2018/19 tax year. i can give them the 2019/20 accounts later next year.

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Posted : 27/08/2019 12:54 am
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