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TOPIC: Calculating maintenance

Calculating maintenance 2 weeks 4 days ago #97191

  • Aqua
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Any help regarding calculating child maintenance please .
I am self employed and have gross earnings . After which tax is deducted NI then I might possibly pension .
I understand the gross figure is used to calculate child maintenance. But if I was was an employee then the employer would pay Pension contributions too and NI but I pay my own . It seem then a big difference between being employed and self employed even though earnings are similar . Also earnings might vary each year so once set will they go up and down every year or only if it changes by 25 percent .
The other question is which gross figure I use . Is it after some business and personal expenses

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Calculating maintenance 2 weeks 4 days ago #97192

Hello Aqua

The Child Maintenance Service (the government’s statutory service) would usually use the amount of gross income given to the government’s revenue and customs department, HM Revenue & Customs (HMRC), by a you or your accountant to work out your gross taxable profits. For every case, the gross income figure is reviewed each year in order to take account of newer income information given to HMRC (not just if there is a 25 percent difference).

For advice on what is classed as you gross taxable profits, you may wish to contact HMRC.

The online calculator can give you an approximate amount of maintenance that would be expected along the Child Maintenance Service’s guidelines. The calculated amount is based on an average of your gross weekly income (income before tax and National Insurance, but after pension contributions have been paid). The figures provided are not set in stone, but it can be a useful starting point when negotiating a family-based arrangement (an agreement between you and the other parent, without any involvement from the government or legal system). You can view this, as along with a range of tools and guides which can help with reaching and maintaining an effective family-based arrangement, on the Child Maintenance Options website at www.cmoptions.org

For more information on all the different ways to set up child maintenance and for a more personalised service, you can visit the Child Maintenance Options website.

The DWP have a sorting out separation website that you may find useful. It offers help and support to separating and separated families. The link is: www.sortingoutseparation.org.uk/ .

Regards

William

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This information which Child Maintenance Options has provided is not a substitute for independent professional advice and users should obtain professional advice relevant to their particular circumstances.

Please note: the Child Maintenance Options team cannot answer any questions relating to a specific CSA or Child Maintenance Service case

Calculating maintenance 2 weeks 4 days ago #97200

Are you a limited company or sole trader?

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Calculating maintenance 2 weeks 3 days ago #97202

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Thanks
I am in a partnership but might go to a limited company in the future .
It is difficult to predict future income exactly and so can I clawback any overpayment and the tax system as it is takes so long after the financial year I can only make estimates .
It does seem quoits high figures to pay and on top of that they are expecting spousal . I have a feeling spousal affects benefits but child maintenance does not ? Any further help appreciated?

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Calculating maintenance 2 weeks 2 days ago #97212

Hello Aqua

Receiving child maintenance will not generally affect any benefits the receiving parent is entitled to. However, if they receive any benefits from the Jobcentre Plus (JCP), they would still need to inform them of any child maintenance they receive.

Child maintenance can sometimes have an effect on Housing Benefit, however, this would depend on the area in which the receiving parent lives and whether they receive this as part of their Universal Credit award. If the receiving parent receives Housing Benefit, they would need to check with their local authority to see if they would be affected by this.

Spousal maintenance is a different contribution and we are not experts within this particular area. You may wish to seek more specialised advice from the Jobcentre Plus about how it may affect certain benefits.

If due to you starting a new business, you are struggling to come to an accurate amount of maintenance, perhaps you could consider a family-based arrangement. This kind of agreement does offer you a great deal of flexibility when it come to your payments. As this arrangement is made just between you and the receiving parent, you can negotiate how much your payments should be. If your income is fluctuating due to starting your business, the flexibility of the family-based arrangement may suit your circumstances at the moment.

The Child Maintenance Service do have a leaflet which you may find helpful. It provides information in detail about how you can come to a more accurate calculation. This link will directly you to it www.gov.uk/government/uploads/system/upl...hild-maintenance.pdf .

If you would like any further information, regarding your options for a new child maintenance arrangement, you may wish to contact Child Maintenance Options yourself. You can find all their contact details on their website at www.cmoptions.org .

You may also be interested to know the Department for Work and Pensions (DWP) have a website, 'Sorting out Separation'. It aims to make it much easier for separating and separated parents (and childless couples) to find the support they need, when and where they need it, and encourages them to collaborate on a range of issues. The link is www.sortingoutseparation.org.uk/

Regards

William

Please Log in or Create an account to join the conversation.

This information which Child Maintenance Options has provided is not a substitute for independent professional advice and users should obtain professional advice relevant to their particular circumstances.

Please note: the Child Maintenance Options team cannot answer any questions relating to a specific CSA or Child Maintenance Service case
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