Claiming Travel Expenses Against Child Maintenance Payments

How is mileage calculated for child maintenance?

Can you claim travel expenses through the Child Maintenance Service?  Yes you can.  Claiming travel expenses for mileage can be done via the portal.  However you can only claim travel costs if you are a paying parent and have an open Child Maintenance Service case.

How Does It Work?

The Child Maintenance Service gives paying parents a discount off the maintenance payable, in order to take into account expenses for travel, such as train tickkets, and mileage costs for fuel.  

To claim, you need to ask for a special expenses variation.  The minimum claim is £10 per week.  So you will not be able to claim for a few miles.

Unlike travel expenses for work, you dont actually receive the money.  It is simply discounted off of your gross income, meaning that you pay slightly less child maintenance to the receiving parent.  The mileage cost per mile is significantly lower than the mileage that HMRC allow you to claim.  

So someone with a gross income of £200 per week, eligible for £10 per week travel, would see their gross income reduced to £190 per week, with calculations for maintenance assessed on the slightly smaller amount of £190.

The cost of the journey it is calculated using the HMRC advisory fuel rates which are not very generous.  They certainly dont cover the cost of running a car per mile.  The HMRC advisory rate used in the CMS calculation does change, in line with average prices on the petrol forecourts.  Rates can go up and down, and are recalculated every 3 months.  All the quarterley rates are shown in the tables at the end of the page.  

Example Calculation

Someone travels 100 miles per week and drives a 1400cc petrol car.

The rate for this calculation is 14p per mile.  

14p x 134 miles = £18.76.  So above the threeshold for a weekly claim.

They have 2 children, so CMS is 16% of income.

Assuming they do 52 journeys per year, annual mileage claim is 7000 miles.

7000 miles x 14p = £980 of travel.

That £980 is deducted from their income for the year.  In this case they earn £30,000 per year.

So a £980 deduction is applied to their salary.  So now their salary starts off as £29,020.

So originally on 30K their CMS at 16% was £400 per month.

So now on £29,020, their CMS of 16% is now £386.93 per month.

A saving of £13.06 per month or £3.00 per week.


How Do You Claim Travel Expenses

You claim for travel using the CMS portal.  You will need to be registered to use the portal.  Currently its not possible to register online, so you will need to call the CMS to set up your login details.  Be warned, CMS telephone lines warn that it could take an hour to get through.

Latest Rates

Rates Effective from 1 Dec 2023.

Fully electric cars are paid at a rate of 9p per mile.  Hybrids are paid based on the fuel  ie unleaded

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	14 pence	10 pence
1401cc to 2000cc	16 pence	12 pence
Over 2000cc	26 pence	18 pence

Engine size	Diesel — rate per mile
1600cc or less	13 pence
1601cc to 2000cc	15 pence
Over 2000cc	20 pence

Previous Rate Effective from September 1st 2023 until 30 November 2023

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	16 pence	12 pence
Over 2000cc	25 pence	19 pence

Engine size	Diesel — rate per mile
1600cc or less	12 pence
1601cc to 2000cc	14 pence
Over 2000cc	19 pence

From 1 June 2023 to 31 August 2023
HMRC Advisory Rates Were:

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	15 pence	12 pence
Over 2000cc	23 pence	18 pence

Engine size	Diesel — rate per mile
1600cc or less	12 pence
1601cc to 2000cc	14 pence
Over 2000cc	18 pence

From 1 March 2023 to 31 May 2023

HMRC Advisory Rates Were:

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	13 pence	10 pence
1401cc to 2000cc	15 pence	11 pence
Over 2000cc	23 pence	17 pence

Engine size	Diesel — rate per mile
1600cc or less	13 pence
1601cc to 2000cc	15 pence
Over 2000cc	20 pence

From 1 December 2022 to 28 February 2023

HMRC Advisory Rates Were:

Engine size	Petrol — rate per mile	LPG — rate per mile
1400cc or less	14 pence	10 pence
1401cc to 2000cc	17 pence	12 pence
Over 2000cc	26 pence	18 pence

Engine size	Diesel — rate per mile
1600cc or less	14 pence
1601cc to 2000cc	17 pence
Over 2000cc	22 pence

Previous Rates from one year ago in 1 Sep 22

As of 1st Sep 2022 the rates are shown in the table below.

Petrol

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	51.9	174.2 pence	791.9 pence	15.3 pence	15 pence
1401 to 2000	44.1	174.2 pence	791.9 pence	18.0 pence	18 pence
Over 2000	28.8	174.2 pence	791.9 pence	27.5 pence	27 pence

Diesel

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1600	60.7	185.2 pence	841.8 pence	13.9 pence	14 pence
1601 to 2000	49.8	185.2 pence	841.8 pence	16.9 pence	17 pence
Over 2000	38.8	185.2 pence	841.8 pence	21.7 pence	22 pence

LPG

Engine size (cc)	Mean MPG	Fuel price (per litre)	Fuel price (per gallon)	Rate per mile	Advisory fuel rate
Up to 1400	41.5	83.7 pence	380.5 pence	9.2 pence	9 pence
1401 to 2000	35.3	83.7 pence	380.5 pence	10.8 pence	11 pence
Over 2000	23.0	83.7 pence	380.5 pence	16.5 pence	17 pence

Electric Cars

The advisory electricity rate for fully electric cars is currently 9 pence per mile.  Hybrid rates are based on the non electric fuel used.

Source .gov.uk website.

Mileage allowances are not paid to receiving parents.  Paying parents wishing to claim need to make it clear that they want to claim the discount.  It wont simply be offered or applied automatically.

Child Support When Moving Abroad

Child Support and Moving Overseas

Its a common question.  "Do I have to pay child maintenance if I move abroad?  

Heres the answer for some:

The Child Maintenance Service will not reduce the child maintenance you pay if:

1.     You move overseas for less than 12 weeks.
2.     You are serving in HM Armed Forces or employed by the UK Government.
3.     You are paid in the UK, for working overseas, but regularly return to a UK primary address.

And for the rest of you, continue reading!

Changing Your Address

Just changing your address with the Child Maintenance Service will not mean you will no longer have to pay, nor will it automatically close a CMS case.  If you leave the country without speaking to the Child Maintenance Service, the child support assessment will continue, and the CMS may even take action to enforce the collection of child maintenance.

The Child Maintenance Service, will not accept your statement that you are overseas unless you can evidence the fact.  The CMS will have to assess if you are habitually resident in the UK, and to do this they will have to consider:

    a.    Your length and continuity of residence in the UK.

    b.    The length and purpose of any absence from the UK.

    c.    Your reasons for leaving the UK.

    d.    Your future intentions.

    e.    The nature of your work

    f.    Where your centre of interest lies, and

    g.    Whether you have a substantial connection with a place.

So what does this mean.  Well if you cut all ties and leave the UK with your family, and have no intent to come back, your maintenance will stop.  If you are working for a few months, returning home to see partner and children frequently, it wont stop.

How Can I Prove I Am Moving Overseas

    a.    Deregister as a UK tax payer via HMRC

    b.    Stop payment of any DWP benefits 

    c.    Remove any lines of credit.  In other words, pay off overdrafts, loans and credit card debt.

    d.    End your tenancy or sale your home.  If you are going to rent it, you will need to complete the HMRC forms for persons renting property but living overseas.

    e.    Provide evidence of an overseas residency permit

    f.    Provide evidence that you are living abroad, such as a tenancy agreement

The REMO Reciprocating Countries List

Reciprocal Enforcement of Maintenance Orders (Known as REMO), is a process where maintenance can still be claimed from you, via an overseas court.  This is not a CMS process, but is mentioned as living in a REMO country can still lead to a court application for child support.  It is not administered by the Child Maintenance Service.

The following countries are subject to REMO

Country	Country	Country
ALBANIA	CYPRUS	MONTSERRAT
ALGERIA	CZECH REPUBLIC	MOROCCO
ANGUILLA	DENMARK	NAURU
ANTIGUA	DOMINICA	NETHERLANDS
AUSTRIA	ECUADOR	NEW ZEALAND (Will trace)
AUSTRALIA (Will trace if the Territory is known)	ESTONIA	NIGER
AUSTRALIAN CAPITAL TERRITORY	ESWATINI (FORMRLY SWAZILAND)	NIGERIA
COCOS (KEELING) ISLANDS	FALKLAND ISLANDS & DEPENDENCIES	NICARAGUA
NEW SOUTH WALES	FIJI	NORFOLK ISLAND
NORTHERN TERRITORY	FINLAND	NORWAY
QUEENSLAND	FRANCE	PAKISTAN
SOUTH AUSTRALIA	GAMBIA	PAPUA NEW GUINEA
TASMANIA	GERMANY	PHILIPPINES
TERRITORY OF CHRISTMAS ISLAND	GHANA	POLAND
VICTORIA	GIBRALTAR	PORTUGAL
WESTERN AUSTRALIA	GREECE	ROMANIA
BAHAMAS	GRENADA	ST CHRISTOPHER (KITTS) AND NEVIS
BARBADOS	GUATEMALA	ST HELENA
BELIZE	GUERNSEY	ST LUCIA
BELARUS	GUYANA	ST VINCENT
BELGIUM	HAITI	SERBIA
BERMUDA	HOLY SEE	SEYCHELLES
BOSNIA AND HERZEGOVINA	HONDURAS	SIERRA LEONE

• BOTSWANA	HONG KONG	SINGAPORE
  BRAZIL	HUNGARY	SLOVAKIA
  BRITISH SOLOMON ISLANDS	INDIA	SLOVENIA
  BRUNEI	IRELAND – The Republic of	SOUTH AFRICA
  BULGARIA	ISLE OF MAN	SPAIN (includes the Canary Islands)
  BURKINA FASO	ISRAEL	SRI LANKA
  CANADA (Will trace if the province is known)	ITALY	SURINAM
  ALBERTA	JAMAICA	SWEDEN
  BRITISH COLUMBIA	JERSEY	SWITZERLAND
  MANITOBA	KAZAKHSTAN	TANZANIA (Except Zanzibar)
  NEW BRUNSWICK	KENYA	TRINIDAD AND TOBAGO
  NEWFOUNDLAND AND LABRADOR	KIRIBATI	TUNISIA
  NORTHWEST TERRITORIES	LATVIA	TURKEY
  NOVA SCOTIA	LESOTHO	TURKS AND CAICOS ISLANDS
  NUNAVUT	LITHUANIA	TUVALU
  ONTARIO	LUXEMBOURG	UGANDA
  PRINCE EDWARD ISLAND	NORTH MACEDONIA	UKRAINE
  SASKATCHEWAN	MALAWI	UNITED STATES
  YUKON TERRITORY	MALAYSIA	URUGUAY
  CAPE VERDE	MALTA	VIRGIN ISLANDS
  CAYMAN ISLANDS	MAURITIUS	ZAMBIA

Tax and the Child Maintenance Service

Income Tax and The Child Maintenance Service

Understanding Child Maintenance and Income: A Comprehensive Guide

Introduction Today, we're going to delve into an important topic: income, specifically taxable income and how it relates to child maintenance. Child maintenance is a critical aspect of ensuring that children receive the financial support they need, particularly when parents are no longer together. In this blog post, we'll explore how income, specifically taxable income, plays a central role in child maintenance calculations and shed light on some essential considerations.

The Transition to the 2012 Child Maintenance Scheme

Child maintenance in the United Kingdom underwent a significant change in 2012 with the introduction of the Child Maintenance Service (CMS). Before this change, the old Child Support Agency existed, and child maintenance calculations were based on deductions from the parent's income. In contrast, the 2012 scheme shifted the focus to using HMRC taxable income. This change was primarily aimed at simplifying the calculation process. Why HMRC Taxable Income? The CMS relies on HMRC (Her Majesty's Revenue and Customs) taxable income because it offers a straightforward way to determine a parent's income for child maintenance purposes. HMRC receives income information from various sources, making it a comprehensive and reliable reference. Here's how it works: For Employed Individuals: If you have a job and receive a regular paycheck through payroll, your tax information is automatically reported to HMRC by your employer. The CMS can easily access this data to determine your annual taxable income. For Self-Employed Individuals: If you're self-employed and file self-assessment tax returns, HMRC receives your income information through this process. This includes details of your earnings and expenses. Special Cases: There are exceptions, such as income from dividends, which HMRC may not initially provide to CMS due to specific tax regulations. However, the receiving parent can request that these dividends be taken into account, provided they can justify the request. Understanding Taxable Income It's important to note that your taxable income reported to HMRC includes various components: Job-Related Income: This is the income you earn from your regular job, and it is reported by your employer on your P60 form. Self-Employment Income: If you're self-employed, your income from self-assessment tax returns is included. Interest Earned: Interest earned from bank accounts and savings is also part of your taxable income. Exemptions and Unreported Income Here's an interesting aspect: CMS calculations are based on gross taxable income. This means that any income that is not taxed at the source and not reported to HMRC will not be factored into the calculation. Common examples of such income include: Rental Income from a Room in Your Home: HMRC allows individuals to earn up to £7,500 per year tax-free from renting a room in their home. This income doesn't need to be reported to HMRC, and therefore, it won't affect your CMS calculation. Other Non-Taxed Income: Various sources of income, like lending money to a friend and receiving interest or certain investments, may be exempt from income tax and therefore not reported to HMRC. Rental Income from Private Properties: If you're a landlord, you're required to declare rental income to HMRC, and it will be included in your taxable income. The Role of the P60 You may wonder if your CMS calculation is solely based on your P60, which is an end-of-year tax document provided by your employer. While the P60 does contribute to your CMS calculation, it's not the only factor considered. CMS takes into account all taxable income sources, not just job-related income. The Importance of the Most Recent Tax Year The tax year and its timing can sometimes lead to confusion. For example, if you're self-employed and your tax return is due in January, your most recent available tax year for CMS purposes will be the one before the current tax year. It's essential to clarify which tax year CMS is using for your calculation. Conclusion In summary, understanding how income relates to child maintenance is crucial for both paying and receiving parents. The CMS relies on HMRC taxable income to determine child maintenance obligations, and this includes various income sources. Knowing which income is exempt from taxation and unreported to HMRC can impact your child maintenance calculation. Additionally, keep in mind that your CMS calculation considers all taxable income sources, not just your P60. If you found this information helpful, please consider liking and subscribing to stay updated with future posts. If you have any questions or specific topics you'd like us to cover in more detail, feel free to leave a comment. For more comprehensive information and discussions related to child maintenance, consider joining our Facebook group, where you can connect with others facing similar situations. Thank you for taking the time to read this post. We wish you all the best in your child maintenance journey. Have a great day! Buy me a coffee please! Please support via Paypal Facebook: https://www.facebook.com/groups/197227785636347 Blogspot: https://childmaintenancehelp.blogspot.com/ Amazon: https://amzn.to/3EyVAue

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