Morning,
bit of a strange one, would really appreciate knowing if any one has similar experience
So my annual review I got in early December, says I earn X, needs to reduce weekly to X, or increase to X, for the figure to be looked at
I did phone CMS couple of months ago and tell them, as the weekly gross they see, would indicate that I earn circa £25K less than their review figure, so I qualify for a re-assessment
I explained that during the year, I get a one off payment into my salary that corrects this and not to re-assess, as I did not know if I would get the payment due to Covid
The money was paid, but due to my industry, from the following month, February, my pay will reduce by circa 40%, but this will be long term and not corrected as has been the case previously with the annual lump sum payment
I have opened a gateway account and can see the monthly gross salary for 8 months, showing I would qualify for a re-assessment, but in January the large one off payment, which would correct this to approximately the annual figure the CMS calculated, so no variance within the 25%
My Gross taxable salary from February and for the foreseeable future will show a significant reduction of circa 40%, so will I be able to request a re-calculation based on this (they may want to see a couple more months)
The CMS tell me I can, but get a different response each time, sorry for the long post, but in effect, I pay the inflated figure through the year, because I know I will get the lump sum and correct this, but this will now stop
Aware that it will be much easier to dispute when I get my next annual review in December, as I will have been paid the lower amount for circa 10 months
thanks
My understanding is that you will have to pay as you have been assessed, until your 40% reduced salary kicks in, and then go back to them with a couple of pay slips showing that, and they should recalculate as if the whole year was at that amount. ie you will get back the overpayment for Dec and Jan plus the 2 months waiting for pay slips, taken into account in the new calculation.
That is my experience.
Thanks for the reply, I kind of understood it that way, but never a good thing to try and second guess the CMS
I did report the fact I was over paying and would qualify for a reduction, but not to correct, as the lump sum payment would correct this
even if I add the one off payment to the amount I was assessed on and divide the lump sum to get to the weekly amount, it would still fall short of what the weekly needs to increase by, so sure covered if they want to use that figure
I did not know that the pay from February, I work in hospitality, would reduce by that much and would be for the foreseeable future, 40% was far more than I expected
as ever, thank you so much
I had similar issues in the past, where I have informed them that the figure showing is under the actual amount earned(dividends) and requested they assess me on the higher amount. They said they could only use the HMRC figures showing, so they assessed me low. My ex complained and asked for a variation based on hiding income, I am threatened with a tribunal and inform them again of the dividends. They scold me for hiding information and then assess me to the exact amount that I had told them I had earned in the first place!
Its almost funny now I look back, but very stressful at the time. Good luck!
thanks for that, couldn't make it up, I have always been un front with them, the lump sum payment for one month, simply corrects the annual figure in line with their estimation, I have been paying the extra amount, knowing the lump sum was going to arrive and at least I have the call logged, were they ask if I was to be assessed on the lower amount
assistance as always is appreciated, I just wish I would get the same answer each time I speak with the CMS, very much down to the luck of getting someone helpful
getting logged into Gateway has really helped, I can actually see what they see now
Rgeards