Hi all. I have had an arrangement with my sons mam for around 10 years as she moved to scotland with my son and I live in Newcastle. earlier this year we had a falling out about contact and she went through the CMS which I didn't have a problem with as I though they would work out my calculations on what I earn at the moment. The calculation they came back with was £36000 from not april but previous one when I was earning overtime and not paying into a pension. currently I am not able to do overtime and I now pay around £4000 into a pension. I had an official letter from my employer explaining all of this and thought they would recalculate it at my wage now. WRONG. my earnings now are £27500 after pension which is a lot different from the £36000 they are making me pay 12% of. I asked for a variation but because £27500 is not 25% less than £36000 they wont take it into account. my case worker said I am around £500 PA short of 25% and agreed that I am paying too much but stated that all she can do is put figures into a computer. I am wondering if I paid an extra 2% pensions contributions which should take me over the 25% mark would they then take it into account and reduce my payments to what I am actually earning. Has anyone been in this situation? Thanks.
i have not been in this situation yet. im self-employed, and i already know that for my review date next year, i will not be paying more because my income has not gone over by 25% it has neither gone down by more than 25% so i should be still paying the same amount.
as for pensions far as i know is whatever you pay into pension, they take that into account and will reduce your payments. i doubt they will say your income has droppd because of it. all they do is check your gross income every year and stick to that, if you have perm job.
very similar situation that i have found myself in, except in my case i did have a change of more than 25% - at around 30%.
I have filled in the forms, called, chased, complained, raised an official complaint, provided 4 months payslips (oniy 2 required) again chased, got an admission from CMS that they handled it incorrectly.. and the result? 18 months later i am still paying the original amount.
The system is broken, as you say they base in on the previously completed tax year, and if you are like me have annual assessment at end of sept/into oct. so they data they have is up to 18 months out of date.
If your pay goes up you legally have to tell them in 14 days, and they will get it sorted straight away. if your pay drops they will say you have to provide months of pay slips, then say they want 2 months to process, then reject it for no reason. and it goes round and round.
Good luck, you will need it.