Hi All,
I am new to this. Have been paying CMS (based on 2022 P60) for the last year year and 2 days ago had my first annual review. My income has not changed ( no mentioning of it increasing but less than 25%). I phone CMS to know that they used 2022 P60 instead of 2023 P60. they said they asked HMRC up to date information and they gave them 2022 P60. I do additional self- employed work so has recently filed a self assessment and the outcome was not my accountant expected so she contacted HMRC again and we waiting for final decision (the difference is only £500). so my question here is why CMS used 2022 P60? is it the untold rule that CMS uses the very first P60 unless receiving parent asked for income to be looked at? or was it just a mistake? or may be because my self assessment is not finalised yet? this is very important to me as I work in a city and live with kids in another city, I had to have 2 accommodations (CMS rejected variation request to support part of bills/ council tax) and excessive traveling expenses (CMS have not completed a 12 month old variation request, which when done will relief me of £50-60, while diesel cost is £400/m plus care expenses). I currently have a huge dept of £20K. I have the opportunity to increase income over 25% debts faster to clear my debt faster. but the increase in income will be marginally over 25%, so not sure if it is worth it. the receiving parent is a a high earner (her income is more than mine) so unlikely will actively ask CMS to check my income. Therefore, if CMS usually uses the very first P60 every year unless receiving parent contacts them I can increase my income without hopefully being noticed???!!
Thanks for the advice in advance!
Yep frustrating,CMS do take a long time to catch up and rely a lot on You up dating the CMS website for them. CMS could not care less about your personal circumstances or debt.they only work on what your top figure is. yes you can claim reductions based on "travel pick up or dropping of children" and the time spent sleeping over inc holidays. this can substantially reduce amount played to EX via CMS . Could you come out of CMS and take the voluntary payment system ? this alone stops all the CMS deductions. then use the "GOV.UK Calculate your child maintenance." that way you only pay against what is your income month by month. Hope this helps
How the Annual Review works
30 days before the Annual Review date
- We find out the latest available gross income information given to HMRC by the paying parent, their employer or a third party (such as their accountant) and check whether they are getting any benefits.
- We use this information to work out a proposed amount of child maintenance that will take effect from the Annual Review date.
20 days before the Annual Review date
- We write to the paying parent and the receiving parent to let them know the decision we plan to make on the Annual Review date.
- Each parent has 20 days to give us extra information we need to know about, or to tell us about changes.
On the Annual Review date
- We write to both parents, giving them the child maintenance decision and a schedule of payments (if there are any payments).
- We also send a child maintenance statement showing payments made or received during the previous 12 months.
At the Annual Review, the amount of child maintenance a paying parent must pay for the next 12 months can change or stay the same.