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Do CMS take private holiday rental income into account

6 replies

ohh · 05/04/2018 12:08

Hello. My ex has suddenly decided to stop working as he felt he was paying me too much money for DD. The figure that he was paying me doubled when I contacted CMS.

He is stating off sick and on half money.....

I know he has a lodge as well on the coast that he rents out, can the CMS use that income instead?

Thanks

OP posts:
prh47bridge · 05/04/2018 15:45

They can use that income but you may have to apply for a variation and provide evidence.

ohh · 05/04/2018 16:07

Thank you prh47bridge

OP posts:
PrettyLittIeThing · 05/04/2018 23:12

My ex avoid working and rents out rooms in his house (3 bedrooms very nice area of central london so enough not to work.) I was told Cms can't do anything so good luck if you get anywhere!

Tamatave2000 · 06/04/2018 08:06

To OP

CMS are meant to take into account all NRP income, both earned and unearned. However, they often overlook unearned such as rental income even if it declared on the HMRC Tax Return.

So as prh47 has advised you may need to dig up some evidence of your own. Is the lodge advertised on the internet for rent? That may tell you what rent is being charged. Websites like Rightmove may help or you could look up letting agents in the area where the lodge is located?

However, be aware that you ex will be able to claim allowable expenses such as repairs, interest on loans to buy the lodge, agents fees and insurance. So the income that would be taken into account would be the profit he makes.

If property not listed as being available for rent (possibly already occupied) maybe a friend can enquire as to availability and how much rent would be? Might sound underhand, but if ex s trying to cheat you some might argue it is not underhand.

As pointed out by PrettyLittleThing CMS not the most helpful when it comes to unearned income and they certainly would not do any investigation on your behalf.

Good luck.

Collaborate · 06/04/2018 08:40

CMS are meant to take into account all NRP income, both earned and unearned. However, they often overlook unearned such as rental income even if it declared on the HMRC Tax Return.

I'm sorry, but that's simply wrong. CMS do NOT take in to account unearned income when they carry out their initial assessment. they are not supposed to. There is something wrong with the system, but CMS are applying the rules properly. As Prh47Bridge has already posted, OP needs to apply for a variation, and CMS will then take unearned income in to account.

I do think it's important that people realise that if they come on to Legal Matters and post advice then they know what they're on about. I mean, you wouldn't come on here to advise on how to perform heart surgery would you? Some people will act on the advice they read here -good and bad.

Tamatave2000 · 06/04/2018 10:10

To Collaborate.

I am not a legal person. So post was more of a rant about my own previous bad experience.

My comments were mostly suggestions as to how OP may be able to obtain the evidence they may need to support an application for Variation.

Comment about CMS came from Tribunal that were very critical of fact that my Ex's HMRC Tax Return listed rent, dividends, etc., but such information was not taken into account when calculating the Child Maintenance to be paid even though CMS have access to HMRC data.

Tribunal went on to say that existing system where RP has to request a Variation and provide proof of such income when details were already presented by NRP on their Tax Return was considered silly and the existing Family Law should be re-visited or alternatively CMS should receive more clear guidelines and pass a test on how to interpret HMRC Tax Returns. Only at Tribunal Stage was I able to see Ex's Tax Return.

Outcome was that Tribunal calculated a Child Maintenance figure based on Ex's total income.

PS

I would certainly not comment on how to perform Heart Surgery

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