CMS Private arrangement "annual reviews"

[wobytide]

Currently in our private arrangement whenever I get my P60 for the year I then adjust the monthly payment as appropriate.

If someone changes job mid tax year though, when should we adjust the payments, at the next P60 or should we try and estimate what the altered earnings are likely to be? In theory if I keep the payments static then I know I will be underpaying until we adjust at the next P60. I know this is more a moral rather than a legal call, just don't want to antagonise and then it goes to CMS for review and how they would treat it would be vastly different i.e. they would only assess on my last P60 I presume therefore not taking the job change into account?

FWIW, CMS use the previous P60 unless income changes by 25% within-year when a change can be requested.

Morally, you should be paying a sufficient amount towards the care and keep of your DC while they’re not with you. The bare minimum is the CMS amount but what your DC need might well be more than that.

Legally, the CMS are unlikely to care. The CMS ‘annual review’ references exH’s P60 from 2015, even though he’s had 3 job changes since then

Thanks for the thoughts. This was why i think it's a grey area happening midyear as whilst I'm sure it's a 25% change in salary it won't be 25% different within that tax year hence not sure how to adjust it compared to what I've done in previous years where my earnings for the year are only declared in May but in theory I've already earned that but been paying a lower amount in effect due to the calculation being on the previous years P60.

And, Thomas, thanks I'm patently aware of how much my kids cost and already pay over the amount to pacify a person who see's them as a money making scheme.I just want to make sure I'm within any remit should said person instead go direct to CMS to cause more trouble

The NRP should called the CMS as soon as they have had a increase or decrease in wage. If they don't this money can be backdated.

If the income goes up or down by 25% or more you should tell CMS, otherwise it will be adjusted at the annual review.

Base your payments on the % you pay based on your last P60 (after pension contributions) for the following year but only re-evaluate your payments mid year if it goes up or down by 25%.

So whatever was on your P60 in April/May, you pay the % based off of that until next April/May unless your wage increases by 25% or more as in salary or a guaranteed bonus, you wouldn't change it for example your work said you'll get £20k IF this happens. You would just pay more the following year in those circumstances