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Divorce/separation

Here you'll find divorce help and support from other Mners. For legal advice, you may find Advice Now guides useful.

CMS and Salary Sacrifice Schemes

28 replies

Daffodils2023 · 23/05/2023 20:59

Hi, can anyone help me on the tax efficient savings that companies offer their employees, particulary Car Salary Sacrifice? The reason I'm asking is my ex has a Salary Package of £85k but the Child Maintenance Service are only taking into consideration £71k, they apparently get their figures direct from HMRC so I am trying to work out if it is the Car Salary Sacrifice which is bringing down the taxable income figure with HMRC. He works for a large company on payroll so there isn't any self-assessment. All I can think of is that it is the Car that is billed on the Companies benefits blurb as being a "tax efficient savings scheme"..... Anyone up on tax and can understand whether this is what is happening here? Ive applied for a Variations on the grounds of "Additional Income" and "Diverted Income" but they've rejected it by saying that I havent provided enough evidence... I provided a copy of his salary package and benefits and they said they only get their figures from HMRC, but if its a tax efficient saving presumably it isn't evident in the HMRC figures?

OP posts:
CandyLeBonBon · 24/05/2023 13:35

FloweryName · 24/05/2023 13:23

But on his wage you must already be getting a decent amount of maintenance from him, so why shouldn’t have a new car if he can afford it?

Because if we let the absent parent decide what they will or won't pay, it will leave the resident parent up shit creek. So parameters are set, to avoid that happening. Granted the cms could do with a bit more tweaking so that it's as fair as it can be but you're effectively saying 'well you're getting loads so now you're being greedy". If that's what she's entitled to, that's what he should pay.

TeenLifeMum · 24/05/2023 13:59

I don’t agree with his behaviour but it’s legal to salary sacrifice for a car and he can argue safety of dc and reliable vehicle ensures he keeps his job. It doesn’t feel fair but he is allowed a car and you can’t set out what the price tag should be for that. It’s the dance of her chose to reduce income and work part time. You suffer but it’s a choice he can make.

DoraDunebug · 24/05/2023 15:13

If his car is classed as a taxable benefit on his P60 then he’ll pay CMS on it. Same with healthcare. If it’s new change it might not be included until the annual review.

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