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Help massive income drop.

 
obsession1
(@obsession1)
Eminent Member Registered

Hi,

My job has been hugely affected by covid. My CMS was based on £39k p annum. I work on a basic plus commission basis the commission has ended and won't change for 12 months. I am earning around £1200 after tax my calculations based on £2700. I have a £400 payment coming out on the 29th that I cannot afford what do I do how do I get the payments down??? I am sure I read it takes 3 months of lower pay to look at it?

Quote
Topic starter Posted : 20/09/2021 6:04 pm
Daddyup
(@Daddyup)
Honorable Member Registered

Hi

Can you get written confirmation from employer re commission stopping on letterhead? 

Its a tricky one as they usually need a couple of payslips and then work it out hence your 3 months... 

I've known people to go into arrears until it is recalculated and then pay the new amount which should also back date the reduction in income... 

 

I would notify them of change of income and get the ball rolling... 

 

Others may have some more advice to add... 

ReplyQuote
Posted : 20/09/2021 6:14 pm
edpacket
(@edpacket)
Trusted Member Registered

@obsession1 You need to send a letter (recorded) to them explaining and asking for the reassessment as income has changed more than 25%. You also need to call them and explain that you won't be able to pay due to the change of income. They shouldn't take any actions if you don't pay while they are reassessing your new income but you may get arrears. You need to confirm with them that this is the case. 

From CMS guidelines, you need to inform them if:

  • has an income change of 25% or more, or no longer has an income
ReplyQuote
Posted : 20/09/2021 6:18 pm
obsession1
(@obsession1)
Eminent Member Registered

The commission is a lot lot lower I could earn 1500 this month 2500 next 2500 the month after but certainly a 25% or more reduction. I just don't know how to approach it. I've a 400 payment next week I'm only getting 1200 after stoppages. They never answer when I call.... realistically I was earning circa 40k I'm now looking at 25k to 29k max

ReplyQuote
Topic starter Posted : 20/09/2021 6:37 pm
Daddyup
(@Daddyup)
Honorable Member Registered

Better to inform them ASAP, in writing and by phone or are you on the portal? You can update change of income on there too.. I would then stop payments until they recalculate although you will go into arrears and your ex will kick off... Its unlikely they will move you to collect and pay especially if you have never missed payments before or had any arrears.. A letter from your employer confirming drop in commission or the new forecasted commission and total gross income would help. Your HR dept should be able to assist with this.

 

 

ReplyQuote
Posted : 20/09/2021 7:49 pm
Bembridge22
(@bembridge22)
New Member Registered

My income dropped significantly at the start of the year.  I rang them and uploaded evidence in May 2021. It wasn't until September the 9th 2021 that the changes took place. 

 

It's an absolute farce, I know how you're feeling and being crippled financially by these is absolutely horrendous. I hope your case gets sorted much quicker than mine did 

ReplyQuote
Posted : 29/09/2021 2:14 pm
actd
 actd
(@actd)
Illustrious Member
Posted by: @bembridge22

My income dropped significantly at the start of the year.  I rang them and uploaded evidence in May 2021. It wasn't until September the 9th 2021 that the changes took place. 

 

It's an absolute farce, I know how you're feeling and being crippled financially by these is absolutely horrendous. I hope your case gets sorted much quicker than mine did 

I would put in a complaint - I don't see why that shouldn't be backdated to the date they were notified. It certainly would be if it was an increase.

ReplyQuote
Posted : 01/10/2021 2:13 pm
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