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

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


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