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Notional income from total value of assets - advice needed

 
WKG
 WKG
(@wkg)
New Member Registered

Hi Dads,

Today I received a letter from the CMS stating my ex has made an application on the grounds of notional income from total assets. This is assets totalling £31350 or more.

However this is my situation:

Recently (like 1 week) I let my main residence out for furnished holiday let. Weekly let as I live by the coast.

This is all above board and I have created a small business with this if it makes me any money I will pay tax as required through HMRC. But hopefully it pays for itself. 

I have moved in my my partner.

We intend to purchase a house together but not completed yet and after this we may not. 

What are my rights?

This holiday let needs to pay for itself and I am not expecting it to make me any money at least for year 1 and then maybe a small amount like £2-3k in year 2 if bookings happen but it’s a gamble.

 

House is worth about £450k but mortgaged

Right now I’m covering the mortgage payments and bills.

What are my options and am I worrying about something I shouldn’t or will I be liable here for even more CMS in top of the hundreds I pay each month. 

can anyone advise me please as this has taken me back. 

I always new I was a cash cow but to receive this letter within a week of the property being let just shows I was always right. 

please help. 

 

Quote
Topic starter Posted : 30/06/2022 7:36 pm
Bill337
(@bill337)
Famed Member

hi,

please refer to:

https://commonslibrary.parliament.uk/research-briefings/cbp-7773/

 

https://www.dad.info/forum/child-maintenance/notional-income-variation/

if your rental income is £2,500 per year and above, then they would want to take a slice of that and include in the child maintenance calculations. they take 8% I think? so many rules and can get confusing.

I also recommend you join this facebook group, CMS support for paying parents: 

https://www.facebook.com/groups/239699060076601

ReplyQuote
Posted : 30/06/2022 8:31 pm
WKG
 WKG
(@wkg)
New Member Registered

@bill337 

Thanks for responding.

When you say yearly income is this after costs ie mortgage and bills?

So essentially any profit? 

Also keep in mind it’s the first week it has been let so it’s pretty early to conclude the yearly income.

i will check out the Facebook page too thanks 

 

 

 

 

ReplyQuote
Topic starter Posted : 30/06/2022 8:54 pm
Bill337
(@bill337)
Famed Member

@wkg I am not sure about the specifics regarding expenses, mortgages. but what CMS like to do is ask for estimated/projected earnings for next 12 months. they do this for people that have LTD company/sole traders etc.

ReplyQuote
Posted : 30/06/2022 9:47 pm
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