Understanding How Mileage Affects Your Child Maintenance Service (CMS) Payments
Today, we’re diving into the topic of mileage and how it impacts Child Maintenance Service (CMS) payments. If you’re a paying parent who frequently collects your child from the resident parent's address, you might be eligible to claim mileage. However, be aware that the compensation isn't substantial.
How Mileage Works with CMS Payments
The CMS uses HMRC advisory rates, which differ from the standard 45p per mile business mileage rate. These advisory rates change quarterly on the 1st of March, June, September, and December. They reflect the average fuel prices across the UK, so they can fluctuate. Currently, rates range from 7p to 24.1p per mile, depending on the vehicle type. The rates are listed below.
Key Points:
Rates and Thresholdsas at Sep 2024
- Lowest Rate: 7p per mile for electric cars.
- Highest Rate: 24.1p per mile for larger vehicles.
- To claim mileage, your weekly expense must be at least £10. For example, at the 24p per mile rate, you need to travel a minimum of 42 miles weekly.
Regular Travel:
- CMS expects you to incur this mileage expense consistently over at least 12 weeks. Sporadic or one-off journeys don’t qualify.
Claiming Mileage
If you meet the minimum travel requirements, you can apply for a mileage deduction. However, the reimbursement process is indirect. CMS doesn’t provide cash; instead, they reduce your CMS liability by a calculated amount based on your mileage expenses.
Example Calculation:
- Electric Car: At 7p per mile, 100 miles equate to £7.
- CMS Reduction: This £7 doesn’t translate directly to a £7 reduction. It’s prorata based on the number of children:
- One Child: 12% of £7 = £0.84
- Two Children: 16% of £7 = £1.12.
- Three Children: 19% of £7 = £1.33.
But in this case no reduction applied as the threshold is £10 per week.
Practical Considerations
- Documentation: Keep detailed records of your travel. Fuel up near the resident parent’s address and save receipts. Use mileage logs or tracking apps for accuracy.
- Special Expense Variation: Submit a special expense variation request to CMS. Note that processing can take several months, so gather evidence over time.
Tips for Successful Claims
- Ensure your travel is from your home to the resident parent's home. Travel from your workplace might not qualify.
- Consistency is key. Regular weekly travel is necessary to meet CMS requirements.
- If denied, appeal and request a mandatory reconsideration. RATES AS PER SEP 2024
Petrol
Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate Up to 1400 51.0 143.4 pence 652.0 pence 12.8 pence 13 pence 1401 to 2000 42.3 143.4 pence 652.0 pence 15.4 pence 15 pence Over 2000 27.1 143.4 pence 652.0 pence 24.1 pence 24 pence Diesel
Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate Up to 1600 56.9 149.1 pence 677.8 pence 11.9 pence 12 pence 1601 to 2000 49.3 149.1 pence 677.8 pence 13.8 pence 14 pence Over 2000 38.0 149.1 pence 677.8 pence 17.8 pence 18 pence LPG
Engine size (cc) Mean MPG Fuel price (per litre) Fuel price (per gallon) Rate per mile Advisory fuel rate Up to 1400 40.8 98.3 pence 446.9 pence 10.9 pence 11 pence 1401 to 2000 33.8 98.3 pence 446.9 pence 13.2 pence 13 pence Over 2000 21.7 98.3 pence 446.9 pence 20.6 pence 21 pence Electric
From 1 September 2024, the advisory electric rate for fully electric cars will be 7 pence per mile.
Electrical efficiency — miles per kilowatt-hour Domestic electricity cost (per kilowatt-hour) Rate per mile Advisory electric rate 3.59 26.42 pence 7.36 pence 7 pence The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The advisory fuel rates for petrol, LPG and diesel cars are shown in the following tables.
You can use the previous rates for up to 1 month from the date any new rates apply.
From 1 September 2024
Final Thoughts
Claiming mileage through CMS is complex and the compensation is minimal. However, it’s worth pursuing if it helps reduce your CMS liability. For ongoing updates on rates and more tips, visit the blog linked below. Share your experiences and get advice from our Facebook community if you face any issues.
Stay Connected
- Facebook Group: #ChildMaintenance #CMSPayments #MileageClaims #FamilyLaw #ChildSupport #HMRC #ParentalSupport #MileageDeduction #ParentingAdvice #CMSLiability #ChildMaintenanceService #SpecialExpenseVariation #UKParents #CMSHelp
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