CMS - Company Car

I was paying my ex via standing order, no issues at all. Few months back I received a letter stating I had to pay well over £400 per month more! (This has since been reduced greatly taking into account overnight stays and another child I have).

I am still in dispute with them, mainly due to them calculating my income. They're deeming my company car as income, surely this isn't right? Waiting for my letter to arrive before I can appeal, I've sent them wage slips proving my income but they're having none of it!

Has anyone else had any joy regarding this? As it stand I will have to give up my flat due to the payments increasing by so much. How do they expect us to live!

Comments

  • Yes, it's correct is the short answer. Taxable benefits from employment, such as company cars, are counted as income for child maintenance under CMS. Basically, if you're paying income tax on it, it will count as income for maintenance.
    I often use a tablet to post, so sometimes my posts will have random letters inserted, or entirely the wrong word if autocorrect is trying to wind me up. Hopefully you'll still know what I mean.
  • MataNui
    MataNui Posts: 1,075 Forumite
    Yep. This is how CMS work.
    Company cars are getting to be not so much of a benefit anyway these days. You get the car but pay loads of additional tax for the privilege. Then CMS take even more.

    Do some calculations. I am 100% sure you would be better off on your bottom line simply giving up the company car and claiming 45p per mile for business use of a personal car. They cant touch that as its a reimbursement not a benefit.

    Do it before the dispute is closed as CMS only ever do a change that means you pay more. If you earn less they insist on waiting till they get the info from HMRC (which will leave you overpaying for more than a year with no right to claim it back).
  • Only problem I have with that is the amount of miles I do. I do around 45k per year, the 45p won't last for all of it will it? Then there's getting a car, policy states must be no more than 4 years old.

    I will be appealing via the Notice of Appeal. And you're right there's no fianancial benefit of having the company car. Even if I opted out they would take some % of the car allowance.

    Will be speaking to my employers Monday to clarify the mileage rate etc.
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