Can anyone tell me what happens if I don't tell CMS I have a new job?
I have been paying a manageable amount for the past year, which was based on a self employed income from the past several years whenever my accountant does a tax return. But my last contract ended 2 months ago and I've been on a nil assessment for 2 months now (I didn't claim UC and it's been a pain getting them to apply the nil assessment, but that's a different story). I'm just about to start a new job with a fair better salary. I've done my budget and I can not afford what they would likely expect me to pay.
I am voluntarily still paying the same amount as when I was contracting ~£60pw. But my potential new payments with new job will be ~£140pw. A considerable jump that right now I can't afford. I thought about not telling them my new job. My annual assessment is May. Would they see my income from my p60 next year, and see that i've paid only half what I should have and backdate payments? Or do they only use that p60 to calculate that following years payments?
I'm not trying to avoid paying, like I said I'm still voluntarily paying, but just right now I can't afford the more than double payment. Maybe at worst case I can delay it by a few months then tell them in like September or something.
Hi,
CMS are known to carry out random income checks throughout the year. This is from their booklet:
Changes to your job or employment - If you are employed and we’ve used gross income information given to us by you, your employer or your accountant to work out child maintenance, you must tell us within seven days of the change if you change your employer or your working hours and your gross income goes up by 25 percent or more. Important: If you do not tell us about this type of change within seven days, you may be prosecuted. If you are found guilty you could be fined up to £1,000. Your child maintenance payments may also be backdated to the date when the change happened. If you pay child maintenance through a deduction from earnings order and you leave your job, you must tell us within seven days: • the name and address of your new employer (if you have one) • how much you earn or expect to earn (if you are working) • your new payroll number (if any) • the type of work you are doing • the address where you are working. Important: If you do not tell us about this type of change within seven days, you may be prosecuted. If you are found guilty you could be f ined up to £500 (this amount may change in the future). Your child maintenance payments may also be backdated to the date when the change happened.
https://www.gov.uk/government/publications/how-we-work-out-child-maintenance
@bill337 thanks for the info. So if I was to ring them and tell them I have a new job, what specifically will they ask? Will they ask what is my new salary? If they do, can I tell them my salary after my salary sacrifice pension contributions have already been deducted?
@checkit yes they will ask what gross salary is. You can tell them about pension contributions.