Hi
Wonder if any one can help.
I'm self employed and not sure how to calculate what my CM payments should be.
My earnings vary massively week to week, month to month. I can ball park what I should be paying on last years earnings but obviously at the end of year may have over or under paid.
Does any one know if I can work it out on a real time end of month what I earned as she is demanding a regular monthly fixed amount so she can budget.
Thanks in advance for advice.
Matt
Hi
The CMS will work on a regular fixed amount- it may be worth having a word with them to see how they best want to calculate payments, but last years earnings is probably a good place to start and then have it recalculated each year if it varies by more than 25%
Hello Matt
If you have a family-based arrangement in place, which is an agreement between the two of you, there are no set rules to follow. This type of arrangement can include anything that you both agree to.
If you would like to use the Child Maintenance Service’s rules as guidance, there is a calculator on the Child Maintenance Options website, http://www.cmoptions.org, which will give you an indication of the amount they would ask you to pay.
You can also view detailed information on how they work out calculations here, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325219/how-we-work-out-child-maintenance.pdf
If you would like information and support in setting up your family-based arrangement and details of all the other options available to you, you can contact Child Maintenance Options directly.
The Department for Work and Pensions (DWP) have a web application, ‘Sorting out separation’. It aims to make it much easier for separating and separated parents (and childless couples) to find the support they need, when and where they need it, and encourages them to collaborate on a range of issues. The link is http://www.dad.info/divorce-and-separation/sorting-out-separation
Regards
William
If you can't provide a consistent month-to-month wage information, then the CMS will use the latest taxable income information (P60) as available from HMRC. This will be from the latest declaration as at end of April of that calender year.
So, the only way would be to use your gross earnings from the last financial year (April-April) as a guide.
They will use your Gross income (i.e. before tax).
If you pay into a private pension scheme, then it is worth passing on this information as well, as it will be deducted from the Gross Yearly income before you Child Maintenance (CM) contribution is calculated.
If you are thinking of moving to CMS for calculating child maintenance, then I would advise you to, if at all possible, stall until after April this year. It makes calculating and reviewing CM contributions so much simpler.
*ALERT*
If you are not already doing this, then I strongly suggest that from now on you pay your ex by Standing Order\Bank transfer.
Make it very clear in the payment reference that this is for Child Maintenance.
This way you will not get done for arrears and/or back-pay.