Child maintenance query.

[Boozysuzy84]

My husbands basic salary is 85k. He also receives £520 a month car allowance which brings his salary up to 91k. Last year he made 101k last year with bonuses added. What amount should go into the child maintence calculator? He says 85k.

What's on his tax return? Or take his gross (101k) but deduct pension contributions.

I believe it’s income minus pension

Not bonuses unless guaranteed

Gross annual income is the paying parent’s yearly income before Income Tax and National Insurance are taken off, but after occupational (employer) or personal pension scheme contributions are taken away.

The CMS will get this financial information from HM Revenue & Customs (HMRC), making sure it is for a complete tax year and will always tell the paying and receiving parent (parent with care, 2003 scheme) which tax year has been used.

... If a paying parent or a receiving parent (parent with care, 2003 scheme) can show that the figure supplied by HMRC for the latest tax year is at least 25 per cent different than the current income, they can request a new calculation.

(so a bonus already paid does certainly count in income)

My ex earns similar. He pays maintenance on his basic salary and then written in the consent order is a clause that he pays me a % of bonus earned as this is never gauranteed.

Bonuses don’t count

As bonuses will appear on his P60 as taxable income they do count to the CMS

The CMS calculate from the previous year. They get the info from HMRC for his entire years earnings (minus pension) and calculate using that.
If his salary changes by 25% or more then they will recalculate, but if it changes by less then they won't until the annual review.

So his bonus from last year does count. You calculate using his entire earnings. They will do an annual review each year to update, but it always uses the previous years earnings.

In my case my ex for a new job half way through but didn't tell them, so I called and told them and it triggered a new calculation. So you can have it checked throughout the year if you need too.

They will include the bonuses as they base it on last years earnings then review it annually unless there's a 25% rise or fall in earnings before the annual review.

However, the car allowance won't be included? As it's not earnings. It's money to maintain a company car so like a pension, it's taken off the calculated amount

If you receive cash allowance for a car, and it's reflected in your gross taxable income then it will be included for child maintenance calculations. Pension contributions are excluded.

It's everything minus pension.

We worked out actual costs rather than percentages and he meets all the fixed costs (eg mortgage, council tax and utilities, I pay for food, petrol etc out of my meagre earnings. I'm certainly better off this way and it's a fairer reflection, but our agreement is that if I earn more I will get less from him