CMS Annual Review change

[Iona345]

Hi,

If anyone gets CMS Annual review, how does it work - are CMS payments recalculated based on paying parent current earnings at the time of review, or do they only change them amount to be paid if there has been a 25% difference.

Getting confused but can't believe a CMS payment would only change if the paying parent has a 25% change in earnings, a natural payrise wouldn't normally be that much annually so you'll never catch up!

At the annual review regardless of the drop or increase the payments will change, the 25% threshold only comes into effect within the 12 months between reviews.
Also, at the AR they get live information from HMRC not from the PP. Hope this helps

Annual reviews are based on the latest available p60. In this case, it will be 2021/2022 (ending on April 2022). This is known as historical income. If the income has changed at any time after calculation by more than 25%, you can request a mandatory reconsideration (based on current income). Or he could if the income has decreased by 25% after the calculation.

@Kittenmum89 @taxpayer1

Thank you both. My Exh said for me not to get a CMS as he incrementally changes payments in line with his payrises (tiny) but won't show me proof and said if i get an official calculation i'll be worse off as they'll only change it if his salary differs by 25% in one year!!

Red flag indeed. I'll be requesting an official calculation asap!

Sorry that wasn't clear, he only makes changes once a year but makes me feel like I should be grateful for the small increases annually but will not show proof of earnings. He is salaried, so should be clear via HMRC his actual earnings to CMS once we go over to official calculations.

I think he's just trying to avoid me doing this.