Child Maintenance - 25% Rule

Sibz

Hello...

Is anyone else really struggling with this rule that if your income doesn't drop by over 25% then your child maintenance payments remain the same as they were when originally calculated.

I think that's absolutely draconian. How out of touch are the people that have put this in place? Who out there (that's working class) could absorb a 20-25% reduction in income and still get by ok?
It's bad enough that it's worked out on your pre-tax income, so not only are you paying that amount, you're also paying the tax on it even though you (in effect) never have it.

In my case, I do self-employed work on top of my full time job to try and provide for my current family, while what I make helps us, it does not account for 25% of my total income. On the year that the original calculation was made I had a particularly busy year, but the years since have been reducing continuously to the point my recent return was below half the amount of the calculation year. But while the online calculation says I should be paying less CM, they won't change it because of this 25% thing. All my SE work and time spent is now doing me no good, in fact if I cannot maintain it I'll effectively lose my home or at the very least struggle to make ends meet... with a child on the way also I'm despairing at the situation this is causing.

Does anyone else find themselves in a similar situation over this? I'm not looking to avoid paying maintenance, I've always paid it and will continue to but at this rate it's simply unsustainable unless I somehow have an upturn in my financial situation (bet the 25% change rule won't be taken into account then)

Caz3121

you would be best posting in the child maintenance forum https://forums.moneysavingexpert.com/forumdisplay.php?f=140

Sambella

What year did they use for the original calculation? Information in this link may or may not help.

https://voiceofthechild.org.uk/kb/hmrc-tax-year-cms-calculations/

thaliadaniels

I agree with you 100%.

Saj12409

Cms should be taking amount from hmrc directly every year to work out maintenance. That means they may use income of one of last six years and should be the latest available income from hmrc.
In my case they are running two years behind. And apparently you can not send p60 to confirm your latest yearly income. They only use the one they get directly from hmrc. You neither can get hmrc to send out information to cms as it's computer generated by cms.

ToxicWomble

Children don’t cost any less to care for just because you earn less.
Sorry to say but if you can’t support children you already have, why have more ?

woolythoughts

Main reason I won't let husband do overtime.

If it st'ops, he's still got to pay maintenance out of overtime money he doesnt get.

Mojisola

ToxicWomble wrote: »

Children don’t cost any less to care for just because you earn less.

If, in a two parent family, their income drops, cuts have to be made or the family would get into debt.

Sibz

ToxicWomble said:

Children don’t cost any less to care for just because you earn less.
Sorry to say but if you can’t support children you already have, why have more ?

Ever heard of changing circumstances troll?