Can Child Maintenance be backdated?

 How far back can child maintenance be backdated?







Child maintenance cannot be backdated to a period before a Child Maintenance Sevice Case is opened.  

Child Maintenance Trap!

Beware the Private Arrangement Trap

In today's post, we're going to delve into a topic that affects many parents: child maintenance payments, specifically private arrangements. With the proliferation of private arrangements and online discussions, it's important to understand the ins and outs of the Child Maintenance Service (CMS) and the potential pitfalls that can arise from starting private payment arrangements when there is a live CMS case. Whether you're the paying parent or the receiving parent, sticking to the guidelines can save you a world of hassle in the long run. So, let's get started with a quick video.

The Temptation of Private Arrangements

It's not uncommon to come across stories of parents who choose to sidestep the CMS payment schedule and opt for private arrangements. However, this practice can lead to unforeseen complications down the line. It's crucial to note that if you have an active CMS case, you're obligated to follow their payment plan. Its not a guidline, its a legally backed up plan based on the income of the paying parent. Changing or deviating from the arrangement might seem like a convenient choice, but it can invite unnecessary trouble. It is of course different if there is no CMS case. The CMS have no jurisdiction to intervene into a non CMS case and a private arrangement is normally of benefit to both parties. CMS cases can not be backdated to before a case was opened.

The CMS Dilemma: Overpaying and Underpaying

One common issue that arises from disregarding CMS guidelines is the dual challenge of overpaying or underpaying child maintenance. Many parents find themselves in a predicament where they have made a private arrangement, only to be pursued by CMS for arrears due to underpayments. CMS uses a formula to calculate payment amounts, and the payment amounts are required to be paid legally, so going against this system can lead to discrepancies even though both parties may have subsequently agreed not to follow the CMS formula. THe key issue is that at any time, the receiving parent can claim that the legally binding payment plan is not being kept to, or not even paid at all.

The Importance of Compliance

To avoid these complications, it's imperative to comply with the CMS payment schedule. If you are a receiving parent, find discrepancies in the payment amount, the appropriate course of action is to engage with the CMS complaints process, although we recommend that if you are able to speak to the ex, you ask them to pay any outstanding balance. Rather than attempting to resolve the issue through private arrangements, adhering to the established system will ensure that you're on the right track. If you are a paying parent, and you dont stick to the payment schedule, your partner could go back to the CMS at any time and say you ae not paying. CMS will look at your last three payments initially and if your bank statement payments dont match the payment schedule, you will automatically be assumed to be in default. Ask yourself, do you really want to pay 20% more due to being put onto Collect and Pay.

The Collect and Pay Conundrum

Nobody wants to find themselves on the "collect and pay" path, which involves CMS taking direct control of payments and potentially adding an extra fee of 20 percent for their services. Sticking to the CMS payment schedule helps you steer clear of this path. For receiving arents, you should be aware that if the paying parent is put on Collect and pay, your paymnets are also charged a fee, and you will receive 4% less due to fees.

Avoiding Lump Sum Payments

Another pitfall to steer clear of is paying arrears as a lump sum. CMS calculates arrears into the ongoing payment schedule, which means that by adhering to the regular payments, you'll gradually clear any outstanding amounts. Paying arrears as a lump sum can complicate matters and may not align with the CMS calculations, potentially leading to more misunderstandings. For example, the Ex may ask for money early, maybe 3 months worth. If you pay it and miss the next three instalments, the money may be considered to be a gift as it was paid outside of the installment plan, and perversely, it will look like you have missed the last three payments.

Getting off of Collect and Pay

If you have been caught out by the private arrangement trap, you will have to pay an extra 20 per cent on your payments for 12 months minimum. However you can ask to be put back to Direct pay after 6 months. You do this by asking CMS to start the process. They will then insist you make a further 6 payments by direct debit, before finally allowing you to pay direct, and without a fee.

Conclusion

In conclusion, navigating child maintenance payments doesn't have to be a daunting task. By adhering to the CMS payment schedule, engaging with their complaint process when necessary, and avoiding private arrangements where CMS have not closed the case, you can save yourself from unnecessary stress and financial complications. Remember, the key is to follow the established guidelines to ensure a smooth and hassle-free journey. A private arrangement should never be set up if there is an ongoing Child Maintenance Service case.

Thank you for taking the time to read our blog post. If you found this information helpful, don't forget to like and subscribe for more informative content. We hope this guide makes your CMS journey a little bit easier. Have a wonderful day

How To Submit a SAR Request

How Do You Make A Subject Access Request to Get Your Information From The CMS, or the DWP.

What is a SAR or ROAR? Understanding Your Right to Access Information

Have you ever wondered what information an organization holds about you? In the UK, you have the legal right to request this information through a Subject Access Request (SAR), also known as a Right of Access Request (ROAR). Whether you want to know what data the Child Maintenance Service (CMS), the Department of Work and Pensions (DWP), or His Majesty's Revenue and Customs (HMRC) holds about you, this blog post will explain the ins and outs of SARs, how to make a request, and your rights under the Data Protection Act 2018 (GDPR).

What is a Subject Access Request (SAR)?

A Subject Access Request (SAR), or Right of Access Request (ROAR), allows individuals to request access to personal data that organizations hold about them. Under the Data Protection Act 2018, which incorporates GDPR, you have the legal right to obtain this information free of charge within one calendar month.

You can use a SAR to:

- Request all data an organization has about you

- Ask for copies of phone call recordings (note: you must explicitly request these)

- Retrieve data from organizations like CMS, DWP, HMRC, and even schools

In this blog, we’ll focus on how to request your personal information from CMS, DWP, and HMRC using a SAR.

How to Make a SAR for CMS or DWP Information

The easiest way to request your information from DWP or CMS is by submitting a SAR online, which is the fastest method. All CMS requests are handled centrally by the DWP.  Do not go to the CMS and ask for the information as it will delay mattters.  Here's what you need to do:

1. Online Request:  

   

DWP Subject Access Request

2. Written Request:  

   If you prefer to submit a SAR by mail, you can send a written request to:

   

   Right of Access Requests  

   Mail Handling Site A  

   Wolverhampton  

   WV98 2EF  

   

   Make sure to include the following in your request:

   - Full name

   - Address

   - Date of birth

   - National Insurance number

   - Phone number (if requesting call recordings)

3. Phone Call Recordings:  

   Remember, if you want copies of phone call recordings with DWP or CMS, you must explicitly request them. These will not be sent automatically.

The quickest way to get your information is to make an online request.  If you make a request by other methods, they willl have to write to you to confirm your request which delays matters.

How to Request a SAR from HMRC

If you need information from HMRC, the process is slightly different. You can request your data directly via the official government link:

HMRC Subject Access Request

Simply follow the instructions on the webpage to submit your request.

Tips for Making a SAR

When submitting a SAR, be as clear as possible about the information you're requesting. For example, specify whether you want records from a specific time period or specific types of data, such as CMS records or DWP communications. This will help expedite the process and ensure you receive the correct information.

Redaction

Redaction is the process where they hide other peoples information.  So you will receive pages with text overwritten in black, so it wont be visible.  That is likely to be the other parties data, which you do not have access to.

You wont be provided with another persons data, unless there is a mistake.

FAQs: Common Questions about SARs

Q1: Do I need to contact the Child Maintenance Service (CMS) directly to get my data?  

Ans: No, you don't. CMS is part of DWP, so you request your data through the DWP's online forms.

Q2: Can I ask for my information during a phone call with CMS?  

Ans: While you can inquire during a phone call, it's much faster and more efficient to use the DWP’s online SAR request page. CMS staff are typically unable to submit requests on your behalf, so always submit your SAR via the proper channels.

Q3:  Can I request call recordings under GDPR.

Ans  Yes, but you must state you want call recordings.  If you dont you will get information from the computer file only.

Further Reading

For more detailed information, here are some helpful resources:

- Child Maintenance: The Complete Guide

- Official HMRC SAR Request

Keywords:

- Subject Access Request (SAR)

- Right of Access Request (ROAR)

- CMS Subject Access Request

- DWP data request

- HMRC SAR process

- How to request personal data UK

- GDPR data request UK

- Child Maintenance Service records

- Request DWP phone call recordings

- Data Protection Act SAR

 #SubjectAccessRequest

 #RightOfAccess

 #GDPR

 #CMS

 #DWP

 #HMRC

 #DataProtection

 #RightToAccess

 #PersonalData

 #SARRequest

How to Report Child Benefit Fraud

How To Report Child Benefit Fraud: A Comprehensive Guide

Introduction: Child Benefit fraud is a significant issue in the UK, with some parents manipulating the system to receive more money from the Child Maintenance Service (CMS). This guide explains how to report Child Benefit fraud and provides essential information about the CMS and its reliance on Child Benefit records.

Understanding Child Benefit and CMS: The Child Maintenance Service (CMS) in the UK is designed to ensure that child support payments are made to the receiving parent as long as the child is in education up to Level 3, equivalent to A levels. The CMS relies heavily on Child Benefit records to determine if a child is still in education.

Education has to be a recognised qualification.  It cant be some form of work experience, or a weekend course.

Some parents exploit this system by failing to cancel Child Benefit when their child leaves education early, thus continuing to receive child maintenance unjustly. The CMS does not directly verify a child's educational status with colleges; instead, it relies on automated checks with Child Benefit records.

If the child benefit records are wrong due to fraud, or forgetting to cancel, child support payments are still charged.  This clearly gives the paying parent an incentive to report fraud.  It is not a victimless crime, it has a financial impact.  

Key Dates for Child Benefit Termination: When a child ceases approved education or training, Child Benefit payments usually stop at the end of February, May, August, or November, whichever date comes first. Most children attending college for two years will have their Child Benefit canceled on the 31st of August.  If the child is on a paid apprenticship, that does not qualify for CMS or child benefit.

So if a child leaves college at Christmas, the next terminal date is the end of February, so the receiving parent will receive child benefit to the end of February, not the end of August.

Reporting Child Benefit Fraud: To tackle this issue, it is crucial to report suspected Child Benefit fraud. Here are three ways to report it:

1. Telephone: Call the HMRC Fraudline at 0800 788 887 to report Child Benefit or Child Tax Credit fraud.

2. Online: Visit the HMRC website and use the online form to report fraud.  Report Fraud Here.

3. By Post: Send your report to: HM Revenue and Customs - Child Benefit Office PO Box 1 Newcastle Upon Tyne NE88 1AA United Kingdom

Frequently Asked Questions (FAQ):

Q: Will the Child Maintenance Service tell me when my child leaves college?

A: No, the CMS will inform you that the case is closed due to Child Benefit no longer being claimed. The CMS does not have direct knowledge of your child's college attendance; it relies on the status of Child Benefit claims.

Q: My child finished school in June, why has my CMS not stopped?

A: Child Benefit typically finishes on the 31st of August. Therefore, even if your child has left college in June, they are considered to be in education until the end of August.

Q:  The CMS have now stopped the case, due to the child not being in education, but they have given me a new Payment plan.  Why?

A:  Most likely due to you paying in arrears.  This video explains further:

Conclusion: Reporting Child Benefit fraud is essential to ensure fairness and integrity in the system. By understanding how the CMS and Child Benefit records work, and knowing the correct channels to report fraud, you can help prevent unjust payments and support the proper use of public funds.

Once the case is closed, even after a refund, you may still owe some arrears.

Keywords:

Further Reading

Child benefit entitlement can be clarified by checking the Child Benefit Technical Manual.

Child Benefit Guide

Child Maintenance Guide

#ChildBenefitFraud #CMS #ChildMaintenanceService #ReportFraud #HMRC #ChildSupport #BenefitFraud #EducationStatus #UKParents #ChildBenefit #PreventFraud #FamilyFinance #ChildSupportUK #FraudReporting #CMSPayments #ParentingTips #LegalAdvice #TaxCredits #HMRCFraudline #PublicFunds

Child Support Arrears and the Child Maintenance Service

Understanding Child Maintenance Arrears: Child Support Arrears Help

Child support arrears can often cause confusion and anxiety for those new to the Child Maintenance Service (CMS). In a divorce, its common for the receiving parents solicitors will keep raising the issue of child maintenance arrears, and divorce solicitors, will often try to portray the paying parent as a bad parent when child suport payments are recorded as in arrears. 

But its all bluff.  Dont be intimidated because your ex partner is divorcing you, using top divorce lawyers from the top divorce law firms.  They are able to intimidate you, because you dont know what they know.  Which is "Why you Shouldnt Pay CMS Arrears"

So lets explain why you should not pay child support arrears, by delving into the terminology surrounding arrears, explain the calculations that lead to their accumulation, and provide practical advice on how to manage them effectively.

Defining Arrears and Debunking Misconceptions:

Arrears, in the context of child maintenance, refer to child support the payments that have not been made according to the repayment schedule set by the Child Maintenance Service, CMS, or due to a change to the repayment schedule meaning that matters are backdated, but payment is taken in the future.  So although these are not arrears, as in they havent been paid, they are included in arrears figure.

That makes it extremely confusing.  Because the arrears are not due, and they are arrears due to the payments for the past, not being paid, because they are due in the future!

It's important to understand that even a minor unpaid amount can be labeled as arrears. For example, when a CMS case is set up, the CMS is calculated on a daily basis, and the CMS dont send a calculation until 14 days have passed, so there will always be arrears at the start of a case.  This designation can lead to significant confusion, especially if not properly explained. Let's take a closer look at a few examples to illustrate this point.

Imagine your monthly child maintenance payment is £300, and you make payments consistently every month except for one. In this scenario, CMS will classify that missed payment as arrears.  If you miss 3 payments, CMS may start the enforcement process.  This means that the paying parent will be put onto Collect and Pay, which incurs fees, however they can actually start enforcement once the first payment is missed.

Understanding CMS Payment Cycles and Recalculations:

To comprehend how arrears build up, it's crucial to understand how the CMS calculates child support payments and when arrears are triggered. For instance, if your CMS case was opened on January 1st and you make payments on the 1st of each month, your first payment would be due on February 1st. Payments continue monthly until the next January, when CMS recalculates your child support payments based on the previous 12 months.

So in this case, you would be paying in arrrears, and you will therefore owe a month of money on the day you are due to pay it.  The payment will reduce the balance, and then a month later the cycle starts again.

Posting Day

CMS is worked out as a daily figure.  Once a month the accrued daily figures are posted to CMS accounts.  Parents may notice that once a month the arrears balance goes up.  It then reduces on payment day.  This means the arrears balance could be three different figures as it sarts at one level, goes up when arrears are posted, and then goes down again when payment is made.

To complicate matters, a month has a different number of days, so whilst 1/12th is paid each month, it may mean the figures differ slightly month to month.

Missed Payments

Here's where the confusion often arises. During this 12-month period, if you miss a single payment, CMS will add that missed payment to your new calculation for the next 12 months. This can lead to higher monthly payments, and the letter notifying you about being in child support arrears might cause undue panic. However, here's the key: the recalculated figure already accounts for the missed payment, so there's no need to make a lump sum payment to cover the arrears amount separately.  Some people do make the mistake of paying a lump sum.  Please dont!

We are familiar with horror stories.  It is known that when a payment is partially made, but reported as not paid, the system adds the full payment due from the balance.

Example:  £100 is due, someone pays under by £5.  It is reported as a missed payment.  CMS computer records a £100 not paid, not £5, therefore inflating the arrears by a £100, and not £5

It has been found that often when reported payments are checked and found to be not missed, the CMS should reapply the entire paid amount to the balance.  CMS frequently do not.  This means that depite the payment being made, the system carries the balance until the case is closed, and the paying parent ends up paying again.

So if a payment is missed, it is essential to make sure CMS credit the whole amount paid.

Adjustments causing arrears:

If the CMS do a back calculation, and establish that you have to pay an extra £1 per day from 100 days ago, you are automatically put into £100 of arrears.  However the payment is not actually due.  CMS take the payment over the future repayment schedule.  If there were 10 months to the next annual review, they would take an extra £10 per month.

So this causes confusion.  The money is labelled as arrears, but is not due to be taken for 10 months.

Practical Steps to Manage Arrears

If you find yourself with arrears, it's important to remain calm and follow a simple plan to manage them effectively, and fortunatly you can do this by simply making the payments that the CMS tell you to each month (or week). 

You do not have to pay any lunp sums.  In fact you should never pay a lump sum, as the arrears are included in the payment plan.  Lump sums are often made when the first CMS payment letter comes, and it imnform sof arrears.  Many make the mistake of paying the child support arrears recorded at that point, and then duplicating the payment, when the first child support payment is actually due.  

Stick to the Child maintenance Repayment Schedule: Always pay the amount specified in your repayment schedule on the due date. This includes the recalculated figure that might appear higher due to the inclusion of the missed payment.

Do Not Pay Arrears Separately: Avoid the temptation to pay the arrears amount as a lump sum. The CMS already factors this into your new repayment calculation.

Communicate with CMS: If your arrears repayments along with regular payments are causing financial strain, reach out to CMS. They often offer options to spread arrears repayments over a longer period to make them more manageable.  CMS have a policy called debt steer.  This policy allows paying parents to spread arrears over two years.  This just needs to be asked for.   Dont be afraid to ask.  Some people are paying arrears at the rate of £1 per week, on thousends of pounds of arrears.  The key is that CMS will accept plans if you ask for them.

Avoid Unnecessary Loans: Refrain from taking out loans or borrowing money from friends to pay off arrears. The repayment schedule is designed to handle arrears over time.  A loan will cost interest.  You dont pay interest on CMS payments.

Conclusion:

Child maintenance arrears can be challenging, and confusing due to the terminology and calculations involved. A receiving parent is likely to insist on payment, but the NRP should not pay a lump sum, because the arrears are built into the calculations going forward.

Do not be coerced into paying child support payments that you do not legally have to make.    

Remember, the key is to stay informed, communicate with CMS if needed to set up a plan, and maintain consistency in your payments. 

Common Questions

Q. Can child maintenance arrears be written off?

A. The CMS can speak to the receiving parent and agree to write off arrears.

Q. Should I pay child support arrears?

A. You should only pay the scheduled payments, as the arrears repayment is built into the payments

Further Child Support Resources:

Here's Why You Shouldn't Be Afraid of Child Maintenance Arrears

CMS Arrears and the DEO


#childsupport #cms #childmaintenance #CMSArrears #ChildSupport #DivorceSupport #CMSPayments #DebtManagement #FinancialAdvice #CoParenting #ArrearsPlan #UKChildSupport #CMSDebtSteer #AvoidLumpSum #FamilyLaw #ChildMaintenanceUK #CMSConfusion

Suggested Books To Buy

New To The Child Maintenance Service

If you are currently splitting from your partner, you will probably have friends giving you lots of advice. 
 

Those friends may feel they are being helpful, but you are probably better off taking the time to do your own research rather than rely on the mate down the pub, or someones comments on facebook.  This will prepare you for when you eventually speak to a solicitor.

As you would expect, a book is no substitute for good legal advice, however a book does allow you to read up on matters, and therefore prepare questions for your solicitor, in order to make appointments as cost effective as possible.

One of the best ways to get e books cheaply is via Amazon. using their Kindle Service.  You dont need a Kindle to read a Kindle book, just a PC, laptop, phone or tablet.  

Ebooks have several advantages over print media.  For example an ebook downloaded from Amazon, can be delivered straight away to your device, will often be cheaper, and it can be updated after you download it with more content.

Amazon run a subscription service for books called Kindle Unlimited which costs £7.99 per month.  You can normally get a free 30 day trial of the service.

This therefore makes it perfect for downloading books.

Here are some suggestions.

Amazon Kindle 30 day trial 

Child Maintenance: The Complete Guide for Both Paying and Receiving Parents using the Child Maintenance Service.

Work Pensions and CMS

Pensions and Employment

If you are offered a work pension scheme, and your employer contributes to it, it is almost certainly a good deal.  After all its free money, and the response of most people is to take as much of the free money in matched pension contributions as possible.  But generally people dont put in more than that.  Lets face it, pensions are not exciting, and there are more demands upon your money.  However there is one time when you should consider putting more into a pension and that is when you have children, particularly if you are making contributions to child support in the UK, using the Child Maintenance Service.

Why Invest in a Pension

The are several reasons to invest in a pension.  Pensions allow you to save for your retirement.  If you die, before you start taking the pension, it may be passed to your beneficery outside of your estate.  However as this blog concerns child maintenance lets look at how pension contributions affect child support calculations.

There are six steps to a CMS calculation.  The first step is to take your annual income, using HMRC records for a particular tax year.  We will use the 22/23 tax year as an example.

The next step is to deduct from the annual income any special expenses payments, such as for travel, and also deduct any pension contributions.  In doing so, the annual income is reduced.

Example 1

Someone earnt £30,000 in the 22/23 tax year.  They then paid £3600 in pensions via an employers scheme, equivalent to £300 per month    

CMS contributions are discounted from the gross income.  In this case, the effect of this is to reduce the salary from £30,000 to £26,400.  From this point the CMS calculation starts to come together.  

In this case, the pension was made through an employers scheme.  Which in the majority of cases, means the income for the year reported to HMRC is after the deduction. 

So HMRC record a total income of £26,400.  And CMS base their income calculation on £26,400.   CMS are not aware of the pension contribution, and they do not need to be told about it, as the pension has been removed from the income.

When you look at the child maintennace Portal it is normal for it to say £zero pension contributions, when you pay via a workplace scheme.  An explanation for that is here.

https://youtu.be/bowRzEem1aA

What if my contributions are not reducing my CMS

However, there is a flaw with employer contributions.  Some employers take the pension contributions, after deduction for National Insurance and Tax.  So they are made from Net pay.  This means that the deductions are not automatically reduced from the CMS calculations.  In order to get them reduced you will need to send them the evidence of the pension contributions, ie the pension statement, which is produced at the end of the tax year.

This also means, that when the paying parent looks at the CMS website or their paperwork it will show as £ zero pension contributions.  This is correct.  

Example 2

Someone earnt £30,000 in the 22/23 tax year.  They then paid £3600 in pensions via an employers scheme, equivalent to £300 per month    

CMS contributions are not discounted from the gross income  In this case, the gross salary has not been reduced, so it is reported that the employee was paid £30,000.   

In order to get it reduced, the employee has to send the pension statements in after the tax year ends.

Common Questions.

a.    If I pay 26% all more of my salary into my work pension, will it reduce my CMS each month due to the 25% rule?

No and yes!  It will, but not in the same tax year.  If you ask CMS to reduce due to breaching the 25% threshold, they will ignore your pension contributions.  So by paying more than 25% you will receive 25% less pay, and you will have to still pay CMS on the full income.  But all is not lost.

The increased pension contributions will reduce your CMS calculations in a future year, when that tax years income, less pension contributions is used to calculate the liability.  

So if in the 22/23 tax year, you pay 25% or more into a pension, when that tax year is used, in either 23/24 or 24/25 tax years, you will pay 25% LESS!


b.    What about private pensions?

Private pensions are covered here at:  How The Child Maintenance Service Treat Private Pension Contributions

c.    If I get a payrise, will the CMS take more money off of me?

Yes they will, when that tax year is used for your calculations.  However if you pay the payrise into a pension, the pay rise is effectively cancelled out.  

Disclaimer:  None of this article, or any other article should be considered to be independent financial advice.  The opinions expressed are based on experiences dealing with the Child Maintenance Service on child support issues.  Legislation may change the validity of the examples and information.

Shared Care and Child Maintenance

Shared Care and Child Maintenance

When a parent makes an application to the Child Maintenance Service they calculate the amount due, using a formula that depends upon a number of factors such as the number of children, the paying parents income and how many other children the paying parent may have.

They then discount that amount to cater for shared care.  Shared care is where the paying parent shares some evening care responsibilities.

For each night on an average week, a paying parent is expected to have the children they take off 1/7th or about 14%.  They have to estimate, based on patterns, or if a court order exists, they base the discount on that.

You do not need to have a court order to prove shared care.  A regular pattern can be used as evidence.  For example if a child stays with the paying parent every Friday and Saturday night, it will be assumed that over the year they will stay with them 54 times.

This qualifies as a 2/7ths discount or a 28% reduction in maintenance to pay.  

The formula is set in legislation, meaning that it cant be changed by the CMS.  It is generally considered that where the child is sleeping at midnight determines where they are being cared for.  

Shared Care Breakdown

• 52 to 103 nights per year equals a 1/7th reduction.
• 104 to 155 nights per year equals a 2/7ths reduction.
• 156 to 174 nights per year equals a 3/7ths reduction
• More than 175 nights equals a 50% reduction and an extra £7 per week reduction for each child in the band.

It is therefore very important that both parents are aware of the shared care discount as it will affect the money.

Where parents are in dispute, the CMS will make a decision which is normally based in favour of the parent with care.  (This is because it is rare for a parent with care receiving money to say they have a child less than the paying parent states).

For example if the paying parent says the child stays for three nights, and the other parents states one night, they will grant one night shared care, as both parties have agreed its at least one night.  However its possible to argue this and overcome the issue, by appealing using the Mandatory Reconsideration process.

What About Day Care?

The CMS do not take daycare into account.  If the child stays with the receiving parent every night, but is looked after by the paying parent all day, the paying parent has to pay 100% of the child support maintenance due. 

However day care is important when dealing with HMRC concerning child benefit.

What About Other Discounts?

The amount of child maintenance charged can also be reduced by taking into account pension contributions, special expenses and other children.  

• To see how child support payments can be reduced for pensions, click here.
• To see how child support payments can be reduced for expenses, click here.
• To see how child support payments can be reduced due to other children, By clicking here..

Example

A child stays with the paying parent from Saturday morning, until 9pm on the Sunday.  They then sleep at the other parents house.  In this example, the child only sleeps at the house for one night, so only one night of shared care is discounted.  It may be two days, but only the nights count.

Summary

The Child Maintenance Service formula for calculation of child support is set by parliament, so cannot be deviated from  Its has many aspects, but the most important is shared care.  One night shared care per week, can reduce child maintenance by 14%.

Further Resources

Child Maintenance A Guide for Parents 

Useful Links

Buy me a coffee please! Please support via Paypal

Facebook: https://www.facebook.com/groups/197227785636347

Youtube Guides www.youtube.com/@childmaintenanceuk #childmaintenanceservice

#cms

#childmaintenanceuk
#sharedcare

Child Support 25 Percent Rule

When dealing with the Child maintenance Service, there is one misunderstood topic, known as the 25 per percent rule, which applies to child maintenance calculations, where there is a child support case through the Child Maintenance Service. The 25% rule might sound complex, but fear not, we're here to break it down for you. Simply put, this rule dictates that for your income to trigger a change in your Child Maintenance Service (CMS) calculation, it must either increase or decrease by at least 25 percent within a year. Let's unpack this further in the video below, and the text that follows.

The 25 Percent Rule in a Nutshell Imagine your income as the cornerstone of the CMS calculation. Its the most important part of the different parts of the CMS maintenance calculation. When you open a child support case with the CMS, they obtain from His Majestys Revenue and Customs known as HMRC, your most recent tax year to determine the percentage of your salary that needs to be allocated for child maintenance. Fast forward a year, and the CMS conducts an annual review by assessing your salary from the following tax year. This process is relatively straightforward when your income remains stable or only fluctuates slightly, say by three percent, from year to year. If it goes up by three percent, you pay more. If it goes down, you pay less. Understanding the 25 Percent Threshold Here's where the 25 percent rule comes into play. If your income changes by more than 25 percent between the two tax years up or down, your CMS calculation will adjust during the year, and not at the next review. The 25 percent rule primarily addresses changes that occur during the year, not as a basis for annual reviews. Examples to Clarify Let's consider a couple of scenarios. In the first case, Person A earns a salary of £10,000 per year, which increases to £12,000 per year. As this increase is not a 25 percent change, the CMS calculation remains unchanged for the rest of the year. However, this increase will be factored into the following year's CMS calculation. In contrast, Person B has a job paying £20,000 per year, and they receive a substantial pay rise to £30,000 per year. Since this increase exceeds a 25 percent change, the CMS calculation should be recalculated at this point, leading to an increased payment for the remainder of the year. This means that the income changes from historic to current income. Bonuses and Temporary Changes You might be wondering about annual bonuses or temporary income spikes. If your salary temporarily increases by less than 25 percent within a 12-week period, you usually don't need to notify the CMS. Temporary changes of less than 25 percent are often considered temporary by the CMS and are addressed during the annual review. However a bonus is normally taxable, so if it does not trigger an increase, your CMS may be higher in a future year, when they use the income from the bonus year to do the calculations. A Word of Caution A common pitfall is when people report a 20 percent increase in their salary to the CMS, and it's occasionally accepted even though it doesn't meet the 25 percent threshold. Also, situations arise where someone's salary jumps by 30 percent and then drops by 15 percent. The CMS might decline to decrease the payment, leaving the individual stuck paying the higher amount until the next annual review. Final Thoughts The 25 rule isn't as complicated as it may seem at first. To trigger a change in your CMS calculation, your income must increase or decrease by at least 25 percent within the year. This rule ensures that minor fluctuations won't require immediate adjustments, sparing you from unnecessary communication with the CMS. Always remember that temporary changes under 25 percent are always addressed during the annual review. On your Child Maintenance Service review date, the CMS will produce a new calculation which will be revised up or down, depending upon a change of income by at least £1. Its not a case that your income has to change by 25% in order for the calculation to change. If you found this guide helpful and want more information on specific topics, feel free to leave your queries in the comments. Don't forget to like and subscribe for more valuable insights, and together, let's make the child maintenance journey smoother for everyone.

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What Does Child Maintenance Cover

What Does Child Maintenance Cover

Child maintenance can be a complex topic to navigate, especially when it comes to understanding what it covers and what it doesn't. In this blog post, we'll delve into the intricacies of child maintenance, with a particular focus on school uniforms and additional expenses. If you're new to this blog, don't forget to join us on Youtube. Our Youtube Channel can be subscribed to at: https://www.youtube.com/channel/UCmKdH63SQdlSqqFwkc4hAKQ?sub_confirmation=1 Please like and subscribe to receive future videos on similar topics right in your YouTube inbox.

The Basics of Child Maintenance When you first open a Child Maintenance Service (CMS) case, you're likely to receive a booklet outlining how child maintenance is calculated and what the service entails. The booklet is called "About the Child maintenance Service - A guide for paying parens and receiving parents. Its refererence is CMSB001GB. The CMS is a government statutory child maintenance service operating in England, Wales, and Scotland. Its primary purpose is to ensure that parents who are separated contribute financially to their children's upbringing through regular child maintenance payments. No one is required to use the Child Maintenance Service. Parents are free to choose their own plan, howeever many choose to use the CMS. Defining Child Maintenance Child maintenance is essentially reliable financial support that aids in covering the everyday living costs of a child. The CMS aims to determine, collect, and distribute these payments on behalf of separated parents. By collect they do this in one of two ways. Direct pay - Where they tell you what to pauy, and you pay direct to the other person. Collect and Pay - Where they take the money and pass it on. There is a charge for this. Calculating Child Maintenance The calculation of child maintenance primarily revolves around the income of the paying parent. It's important to note that only the paying parent's income is taken into consideration, not their expenses or additional payments. There are different rates of child maintenance, including basic, reduced, and nil rates, based on specific circumstances. Consideration of Other Children The presence of other children, whether living with the paying parent or not, plays a role in the child maintenance calculation. If a parent has more than one child, the rates may vary accordingly. It's crucial to inform the CMS about any other children you have, as this information affects the final calculation. If you are a paying parent it may reduce your overall contributions. The CMS will not reveal the names of the other children. Only that there are other other children, and how many. Shared Care and the Child Support Calculation Shared care arrangements are also considered when calculating child maintenance. The number of nights a child spends with each parent per week can impact the amount paid or received. This shared care is factored into the calculation, and discounts are applied based on the number of nights spent, averaged over a forward looking year. School Uniforms and Extras One common query is whether child maintenance covers school uniforms and other extras. The answer is straightforward: child maintenance is meant to contribute towards the child's general living expenses. It doesn't specifically cover individual items like school uniforms, after-school activities, or school trips. The CMS calculation is designed to provide financial support for the child's overall well-being. The CMS do not provide a breakdown of items that CMS support payments cover, nor would they as the calcuation is based on the paying parents income, not the receiving parents expenditure. Private Arrangements for Extras If paying parents wish to contribute towards school uniforms, school trips, or other extras, they can make private arrangements. This can be a more flexible way to allocate resources according to specific needs. However, it's recommended to establish clear terms and conditions to avoid any misunderstandings. Legally, if the CMS is used to provide a calculation, the CMS amount must be paid, and that is enforcible in law. Neither party can make an arrangement to pay another figure, higher or lower, without the child support case being closed by the Child Maintenance Service Understanding Spending Allocation Child maintenance payments are intended to support the child's living costs, and how these funds are allocated is up to the receiving parent. While concerns might arise about how the money is spent, it's essential to recognize that the CMS calculation is a contribution to the child's overall expenses, without specifying where each portion should be allocated. A paying parent cannot withhold money if they are not happy with the spending. Conclusion Navigating the world of child support payments through the Child Maintenance Service, can be challenging, but understanding its fundamental principles can make the process smoother. Child maintenance primarily covers the general living costs of the child, and while it doesn't include specifics like school uniforms or extras, parents can make private arrangements for such expenses. Remember that child maintenance is about ensuring the child's well-being, and open communication between parents is key to achieving that goal. Facebook https://www.facebook.com/groups/197227785636347 Blogspot: https://childmaintenancehelp.blogspot.com/ Amazon: https://amzn.to/3EyVAue

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