Showing posts with label What is Shared Care. Show all posts
Showing posts with label What is Shared Care. Show all posts

2023/12/12

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

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