2023/12/12

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

















2023/12/07

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 sizePetrol — rate per mileLPG — rate per mile
1400cc or less14 pence10 pence
1401cc to 2000cc16 pence12 pence
Over 2000cc26 pence18 pence

Engine sizeDiesel — rate per mile   
1600cc or less13 pence
1601cc to 2000cc15 pence
Over 2000cc20 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