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CMS is flawed

 
SlinkyPinky
(@slinkypinky)
New Member Registered

Firstly I want to put it out their I am not in anyway disagreeing with maintenance payments just the unfair and flawed way it is calculated.

So after many years or paying CM via the CMS my annual review whacked on nearly £50 more this time, despite only a 1% income raise. After discussing this with them it turns out they don’t use your P60 to calculate (if someone could enlighten me as to why) but calculate off of the last few months payslips and then deduce that this is what you earn!!

so for me a one off bonus (company never pays bonuses) and a one off overtime payment in separate months apart justify their increase.

I asked for a reconsider but this has come back as a no as it was just under the 25% threshold

This is a flawed calculator as and my household costs go up, I’m struggling where as the ex now gets and extra £50 on top of the £220 she was getting a month.

how is this fair?!

and is there any Avenue I can go down to get the CMS to look properly and use common sense?

Quote
Topic starter Posted : 14/09/2021 8:44 am
Daddyup
(@Daddyup)
Honorable Member Registered

Hi

Unfortunately it's just the way the CMS works, they average your salary out using 2 months of wages slips. In theory this should be the same as your declared salary, if not then they go with the new figure. They try to determine that you will be paid the same overall amount in the next 12 months (eg overtime/bonus).. If they didn't do this, then they wouldn't be including your bonus and overtime into your annual calculation. 

 

Were the bonus/overtime paid just before your annual review? In which case, next year, see if your employer will delay payment. 

 

I can't think of any further avenues, maybe another poster can advise. 

 

All the best. 

ReplyQuote
Posted : 14/09/2021 10:09 am
edpacket
(@edpacket)
Eminent Member Registered

Hi,

 

The 25% is only in between annual reviews (e.g. if your salary goes up|down 25% in between annual reviews). They are lying to you. . Don't talk to them by phone as every person will give you a different answers. Send a recorded letter via post and demand a mandatory reconsideration as they have to use your P60. Send a copy to Arlene Sudgen and also to your MP. They will reply to you that it is not the correct process to write to Arlene but they will work on your case. 

 

PS:

If you get a one off bonus or overtime it is better to put the money in your pension as it will affect your CMS calculation next year.

 

Regards

ReplyQuote
Posted : 14/09/2021 10:10 am
SlinkyPinky
(@slinkypinky)
New Member Registered

Thanks Guys, I'll go down the letter avenue.  When I spoke to them they said that they use the last 2 months of payslips, which is wrong IMO.  As a husband to someone getting CM from her ex I would be unhappy if she was getting less because he didn't work as much in the months leading up to his annual review to fudge his income, which he would do if he knew how they calculate it.

As for the overtime and bonus I couldn't put it into my pension as it shows straight on wage slip and the CMS get my wage slips from HMRC - this is their wording not mine

ReplyQuote
Topic starter Posted : 14/09/2021 10:25 am
edpacket
(@edpacket)
Eminent Member Registered

You have to be very firm with them. I am not sure if they don't know or they just lie. They have to use the P60 by law and the 25% is not applicable on the annual review. Regarding your pension, you are allowed to put the money in your pension. That is one of the few things that it is allowed to deduct from your gross salary for CMS purposes. Depending on your age and when you started contributing to your pension, you can put up to 75% of your salary into your pension and it is accepted by the CMS.

This post was modified 2 weeks ago by edpacket
ReplyQuote
Posted : 14/09/2021 10:36 am
SlinkyPinky
(@slinkypinky)
New Member Registered
Posted by: @edpacket

You have to be very firm with them. I am not sure if they don't know or they just lie. They have to use the P60 by law and the 25% is not applicable on the annual review. Regarding your pension, you are allowed to put the money in your pension. That is one of the few things that it is allowed to deduct from your gross salary for CMS purposes. Depending on your age and when you started contributing to your pension, you can put up to 75% of your salary into your pension and it is accepted by the CMS.

Thanks - have you got any where I can reference to say to them they must use my p60 so i have all the correct information when compliling this letter

 

Thanks

ReplyQuote
Topic starter Posted : 14/09/2021 11:03 am
edpacket
(@edpacket)
Eminent Member Registered
SlinkyPinky
(@slinkypinky)
New Member Registered

@edpacket Perfect, thank you.  Now looking at the legislation it states that

Historic income – the HMRC figure

36.—(1) The HMRC figure is the amount identified by HMRC from information provided in a self-assessment return or under the PAYE regulations, as the sum of the income on which the non-resident parent was charged to tax for the latest available tax year—

 

So basically my P60 - am i reading this right?

 

ReplyQuote
Topic starter Posted : 14/09/2021 11:29 am
edpacket
(@edpacket)
Eminent Member Registered

@slinkypinky 

 

Yes. They have to use your latest available tax year (your P60) as your monthly income fluctuates. If you have your P60 document, add it to your mail. I have found out that people will say anything by phone as there is no accountability but once they have to put it in written they are more careful, they double check. I never talk to them. I don't even answer when they call me and I have requested everything to be sent via regular post not even by the portal. 

 

 

ReplyQuote
Posted : 14/09/2021 11:43 am
Daddyup
(@Daddyup)
Honorable Member Registered

Hi

Interesting and useful link, thank you very much. 

 

ReplyQuote
Posted : 14/09/2021 6:40 pm
edpacket
(@edpacket)
Eminent Member Registered

👍

ReplyQuote
Posted : 14/09/2021 7:03 pm
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