Child Maintenance Service self-employed or limited company

How to Obtain Child Maintenance via the Child Maintenance Service for a Self-Employed or Limited Company Paying Parent

1. Understanding the Child Maintenance Service (CMS)

The Child Maintenance Service (CMS) is the UK government department responsible for ensuring that non-resident parents contribute financially to their children’s upbringing. However, when the paying parent is self-employed or owns a limited company, calculating and enforcing payments can be more complex.

2. Initiating a Child Maintenance Claim

• Contact CMS: Apply online, by phone, or request a paper application.

• Provide Necessary Details: You will need details of the paying parent's income, employment status, and company details (if applicable).

• CMS Fees: There is no longer an application fee to use the Child Maintenance Service

The CMS will then produce a calculation based on the last available tax year released to them by HMRC.  This wont be the current tax year, and most possibly not the last one.

3. Assessing Income When the Paying Parent is Self-Employed

Unlike salaried employees whose earnings are easy to verify via PAYE records, self-employed individuals have more control over how they report income.  Remember

• CMS primarily relies on HMRC tax records.

• They use the most recent available tax return (Self Assessment) to determine gross income.

• If income fluctuates, CMS can take an average over multiple years.
  
  Its important to realise hearsay is not evidence.  Driving flashy cars, big houses etc do not determine the CM payment.  Its the taxable income, taken from HMRC records that counts.

4. Challenges with Self-Employed Paying Parents

• Underreported Income: Some self-employed individuals minimize declared income through tax deductions.  And some dont declare the money as they receive it in cash, then it will never be recorded.
  
  Irregular Income: Seasonal fluctuations or business expenses can affect reported income.

• Delays in Tax Filings: If the latest tax return isn't available, CMS may use an older one.

5. Assessing Income When the Paying Parent Owns a Limited Company

If the paying parent is a director or shareholder in a limited company the CMS will initiallly produce a calculation based solely on their salary which is reported to HMRC.  CMS dont take their word for it, they get the information from HMRC

Dividends

CMS can also consider dividends drawn from the company.  The paying parent will need to be a shareholder of the company.  Being just a director, does not mean they have shares.  Only a shareholder can be paid dividends.

As CMS use HMRC data, after the initial calculation is produced, the receiving parent has to go to the CMS and ask for the dividends to be taken into account.  They wont be taken into account automatically, so its possible for a shareholder to receive dividends for years and not have to pay CM money on that income.

This is perfectly legal and normal.  Dividends are only included if asked for.  If you are a receiving parent and you want the dividends to be included you must ask for a variation due to dividends.  CMS can refuse if it is a speculative application.  It must be a credible ask.  So for example the receiving parent should state they know the paying parent receives dividends as they have told them, or they know the accounts because they used to do the accounts.

If you are a paying parent, and the dividend variation is made, they will just get the information from HMRC.  You dont need to submit evidence.  CMS will write to you.  Its important to point out, this is just a procedure.  If you are a paying parent you dont have to declare your dividends, and you wont get into trouble when this process is started.  The inclusion of dividends is only valid for the tax year used, and going forwards.  You will not have to pay for dividends from previous tax years.

If the paying parent is self employed, then asking for dividends is not credible, because the self employed work for themselves and they dont earn dividends.  Only a shareholder in a company can receive dividends.

So if the receiving parent asks for dividends due to the paying parent being self emplyed the application will be refused

Pension Contributions Paid By the Company Direct to The Pension Company

Companies can pay pension contributions direct to a pension scheme.  Again this is legal, but the CMS may consider it to be a Diversion of Income if the Contributions are excessive.

So if the paying parent is paid £12,000 per year, and then receives £12,000 in direct pension contributiosn that would be seen as excessive.

CMS would take a position on that, meaning that the CMS may be adjusted upwards.

Excessive Retained Profits

Whilst it is ok to retain profits, if it is being seen to be excessive, and the paying parent is a sole director it may be viewed as diversion.

Have a plan.  If you need to retain profit for a big investment, document the process.  There was a tribunal case where CMS lost because they said that a new vehicle fleet was only purchased to avoid CMS.   

Directors Loans

Directors may receive loans, and not repay them to the company.  That is legal, but if the loan is not paid off it becomes taxable.

As this point it then becomes subject to CMS.  CMS will value the entire loan as income and charge CMS on it.

Remember 

• CMS can request company accounts to identify additional income sources.

• If necessary, CMS can apply a "variation" to include additional income streams (e.g., retained profits, benefits in kind).

6. Requesting a Variation for Hidden or Misreported Income

If you suspect that the paying parent is underreporting their income, you can request a variation:

• Undeclared Dividends: If they pay themselves via dividends but report a low salary.  Remember, this is not illegal and is best practive to reduce tax.  But a low salary does not mean that someone is dodging CMS.  

• Retained Profits: If their company holds profits instead of distributing them.

• Lifestyle Inconsistencies: If they live beyond their reported means (e.g., luxury assets, holidays).

To request a variation:

• Provide CMS with evidence (e.g., company accounts, bank statements, property ownership records).  Some of this may be obtained from companies house.  
  
  Remember any document sent to CMS must be legally obtained.  If not it cannot be used by CMS to conduct assessments.
  
  A common mistake is to use Form E paperwork from a divorce settlement.  If permission has not been sought from the court, and an order granted, it is illegal to use the information for CMS purposes and the user can be found guilty of contempt of court.

• CMS may contact HMRC or investigate further.

7. Enforcement Actions if the Paying Parent Avoids Payment

If the paying parent fails to pay:

• Deduction from Earnings Order: For those who pay themselves via PAYE through their own company.

• Deduction from Bank Accounts: If money is held in personal or business accounts.

• Liability Order & Bailiffs: CMS can take court action to seize assets.

• Charging Order & Sale of Property: In extreme cases, CMS can force the sale of assets.

8. Seeking Additional Support

• Legal Advice: Consult a solicitor or family law specialist if you encounter resistance.

• Financial Investigation Unit (FIU): CMS has specialist teams to investigate complex financial arrangements.

• Parliamentary & Ombudsman Complaints: If CMS fails to act effectively, you can escalate your case.

Conclusion

While obtaining child maintenance from a self-employed or limited company paying parent can be more challenging, persistence and using all available CMS options can help ensure fair contributions. If necessary, seek professional advice to strengthen your case.

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How To Get Information like Education Records

Many people struggle to understand how to access information, whether it's their personal data, public authority policies, or school records. Misconceptions abound, with some attempting to use the Freedom of Information Act (FOIA) for personal data requests and others misapplying the Data Protection Act (DPA) to obtain third-party information.

Three key pieces of legislation govern data access in the UK:

1. The Data Protection Act 2018 (often referred to as GDPR) – Used for obtaining personal data about yourself.

2. The Freedom of Information Act 2000 – Used for accessing information from public bodies.

3. The Education (Pupil Information) (England) Regulations 2005 – Used for accessing school records if you hold parental responsibility.

Understanding the correct application of these laws can empower you to obtain the information you are entitled to.

The Data Protection Act (DPA 2018)

The DPA 2018 allows individuals to request their personal data from organisations, companies, or government bodies. However, it does not grant access to information about the organisation itself or other people’s data.

For example, if you are dealing with the Child Maintenance Service (CMS), you must direct your Subject Access Request (SAR) to the DWP Data Protection Team, as CMS is part of the Department for Work and Pensions (DWP). CMS will only provide information about you, not other parties in your case. Any third-party data will be redacted.

Similarly, if you have had dealings with social services, you can request your records, which can be crucial for obtaining meeting notes or defending yourself against accusations. However, accessing information about a child depends on their age. Some local authorities may refuse to disclose information about teenagers without the child’s consent, meaning you may need to obtain it directly from them.

Why This Matters

The DPA 2018 is not just about getting information—it’s also about ensuring accuracy. If incorrect data is held about you, it can lead to serious consequences.

For instance, I once obtained data from my local authority and found information that had been improperly shared by another body. While it was not negative, it should not have been in the council’s records. I requested its removal, but they refused. I then challenged the original body that had shared the data, which resulted in the council being ordered to delete it. Pursuing this further, I demonstrated a data breach, leading to an out-of-court settlement with the organisation responsible.

This highlights how requesting your data can expose errors, leading to correction and, in some cases, compensation.

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The Freedom of Information Act (FOIA)

The FOIA applies to public bodies such as councils, government departments, and schools. It is used to request non-personal information, such as policies, procedures, and internal communications.

For example, I once wanted to know what was discussed between my county council and Ofsted after I filed a complaint. The council initially refused my request, claiming the emails contained personal data. However, when I submitted the same request to Ofsted, they provided the emails without issue.

I then challenged the council’s refusal by requesting an internal review, but they upheld their decision. I escalated the matter to the Information Commissioner’s Office (ICO), which ruled in my favour and ordered the council to release the information within 30 days. When they failed to comply, I reported them again, prompting the ICO to issue a legal warning for contempt of court. Only then did the council provide the requested data.

This case demonstrates the power of persistence and knowing your rights under FOIA.

FOIA and Schools

In another case involving my child’s school, I initially requested data under the DPA 2018, but the school refused, stating it was not personal data. I then submitted a FOIA request for the same information, and the school reversed its position, now claiming it was personal data and therefore could not be disclosed under FOIA.

This contradiction forced them to admit their mistake. Schools and other public bodies often misuse data protection laws to withhold information, so understanding the correct legislation can be crucial in challenging their decisions.

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The Education (Pupil Information) (England) Regulations 2005

This law is often overlooked but is highly effective for parents seeking access to their child’s school records.

If you hold parental responsibility, you are entitled to receive information about your child’s education, including:

• School reports

• Detention records

• Exclusion notices

In my case, my child’s school failed to provide reports and other vital updates. Their justification? They were informing the mother, and they claimed my child did not consent to share information with me. However, upon further questioning, it became clear that a third party had influenced the school’s decision.

This is a common issue, particularly in cases of parental alienation, where one parent deliberately restricts the other’s access to school information.

The Legal Battle

I knew that unlike the DPA 2018, a child cannot refuse parental access to education records under this law. The government’s own guidance states that schools must provide this data to parents who hold parental responsibility.

The school sought legal advice, spending £4,800 to confirm whether they were obligated to provide the information. The legal verdict? They had no choice but to comply.

I only discovered the cost of their legal consultation due to an unrelated data breach, which a third party informed me about. To verify, I used the FOIA to request details of the school’s legal expenses. Sure enough, the figures matched exactly what I had been told.

Why This Law Matters

Unlike the DPA 2018 (which allows organisations one month to respond) or FOIA (which grants 20 working days), the Education (Pupil Information) Regulations require schools to provide records within 15 school days—a significantly faster timeframe.

If you’re struggling to get information from a school, citing this law can cut through delays and force compliance.

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Conclusion

Knowing how to correctly apply these three pieces of legislation can make all the difference when seeking information:

• DPA 2018 for personal data requests.

• FOIA for non-personal public authority information.

• Education Regulations 2005 for accessing school records.

Public bodies often resist disclosure, sometimes through ignorance and sometimes deliberately. Persistence, knowledge, and the right approach can help you obtain the information you need. If an organisation refuses your request, challenge them, escalate to the ICO, and use every legal tool available to enforce your rights.

How to Get Information from the Child Maintenance Service (CMS). The CMS can only give you your information, they cannot give you information about the other parties to your CMS case. Thats their personal data so CMS will redact it. The CMS are a part of the Department for work and Pensions, so you apply to the DWP, not the CMS. Get your data from the CMS

Keywords:

• Legislation: Data Protection Act 2018 (GDPR), Freedom of Information Act (FOIA), Education (Pupil Information) (England) Regulations 2005
• Information Access: Personal data, information access, obtaining information, data request, school records, emails, policies, procedures
• Organizations: Child Maintenance Service (CMS), DWP (Department for Work and Pensions), local authority, school, Ofsted, Information Commissioner
• Legal Concepts: Parental responsibility, consent, data breach, legal advice, contempt of court, redaction
• Situations: Child maintenance case, social services case, school information, parental alienation

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Template Letter for Data Breaches

Here is a template letter you can use to complain about data breaches.  I have put this together for a complaint concerning a social worker, but you can adapt the template to suit your need.  If not using for a social worker complaint, you will need to remove the sections about social worker professional standards.

Your Address

The Date

Who the Letter is address to.

Dear XXX

Formal Complaint Unauthorised Disclosure of Sensitive Personal Data.

On the (Insert Date) , (Insert Social Worker Full Name) a professionally registered social worker employed as a social worker by (Insert Council Name) disclosed data that they were not authorised to do. 

In doing so they 

Breached Section 170 (1) (a) Data Protection Act 2018:  Which makes it an offence to knowingly or recklessly disclose personal data without consent.

Breached Social Worker Professional Standard 2.2  Respect and maintain people’s dignity and privacy.

Breached Social Worker Professional Standard 2.6  Treat information about people with sensitivity and handle confidential information in line with the law.

The breach occured because  (XXXX inseert what they did and state that you are harmed because of it.)

With regards to this incident, I wish to make a formal complaint and I also require require:

a)     A copy of your organisation’s data protection policy for the relevant period;

b)     A copy of any risk assessment in place prior to the data breach and any risk assessment in place after the data breach had occurred;

c)     Any relevant notes and documents pertaining to any internal investigation into this incident;

d)     Confirmation that your organisation reported the data breach to the Information Commissioner’s Office (“ICO”) within 72 hours of identifying the data breach; or the minutes of any meeting if you decided not to report the matter.

e)     A copy of any correspondence between your organisation and the ICO relating to this data breach;

I reserve the right to refer the matter to the Information Commissioners Office.


Yours Sincerly


XXXXX