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TOPIC: Potential 25% reduction will this work?

Potential 25% reduction will this work? 3 weeks 6 days ago #109889

Hi all

Last year in the tax year, I received my salary plus I had a great year on work bonuses that were a one off for a year.

So, my review came back obviously quite high due those bonus earnings.

Obviously now 6 months into the year, with Covid etc and my bonus potential being a lot less, it looks like my earning projection is going to be down by 35% from 2019/2020 - based on earnings the first 6 months, followed by salary and potential bonus the next 6 and divided by 52 weeks.

Presumably then, I am entitled to have a reduction, I really can't afford the new payments they are asking me to make starting next month.

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Last Edit: by adonaldson1986.

Potential 25% reduction will this work? 3 weeks 6 days ago #109892

I believe that if your pay in this current year is over 25% down on last year and you have at least 2 pay slips to show them, you should be able to get reassessed based on selecting the over 25% change in income rule.

I am not 100% on that, but believe so.

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Potential 25% reduction will this work? 3 weeks 6 days ago #109904

whenever your income drops by 25% or increases by 25% you should tell CMS asap. the default is they do your annual reviews and just go with whatever amount is showing in your tax records for most recent year. if its wrong then you can give them evidence to calculate your maintenance correctly.

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