CMS payment - Rental Income,

hmeah

I recently had my name added to my parents property, there is rental income and last year I declared all the income under my name and not my parents, I recently got a letter or notice of variation from CMS where my ex wife has asked them for further info on income and assets 

I wanted to know if I will be liable to pay child support on the full rental income or only on the profits ( after all expenses)?

im already paying child support from my month earnings and now will I need to pay on the rental income i declared? 

I also have 20k saving and need yo dispose this, will they take money from this too? 

hmeah

I meant I have 20k saving and I need to declare this, will they take a chunk of my savings? I recently borrowed 20k additional 
borrowing on my mortgage  to pay off some personal debts and do some house renovations, will they take some from
this too? 

tacpot12

You will be liable to pay child maintance based on your share of the profits from the rental. It's not clear from your post whether your parents are legally entitled to a portion of the rent, but whatever portion they are legally entitled to, you don't have to pay child maintenance on it. It would appear that Mortgage Interest is not an allowable expenses.

They won't take your £20k of savings into account as capital. You can have up to £31,250 before they will assume that you receive an income from it.   

hmeah

My parents added me to the property in 2022, that year the total income was 12k and after expense like service charge etc (not mortgage interest), the profit was 4k, so will it be the 12k or 4k the figure used by CMS? 

The saving is 20k and I got a loan of 20k to pay debts, do I need to declare this as I have over 40k in account, the loans was put into account from santander In June 2024.

Thank you for your help, I appreciate it, cms is very stressful and so is ex wife! 

hmeah

Yes my parents are listed on the property and they take the money too, it comes into a joint bank account but I declared it all in my name, I'll do it differently next accounts 

MrsR1234

You will be assessed on the figure that has been declared to HMRC as profit and is shown in your SATR. They will not divide the profit as you have declared that you received the entire amount to HMRC. Going forward you should only declare the profit you receive and your parents should claim their portion. 

Once you have submitted a newer SATR, you can ask CMS to review the existing variation and amend it to use the latest SATR. 

In terms of having savings. They will only consider cash asset exceeding £31,250. You said the loan was to pay off debts but you say still have this in account? If it's Just sitting in your account, that's now savings too. I would pay off the debts.

You do not need to declare it yourself, but if the other parent requests a variation for assets you will be asked and you will have to explain where the monies have been spent/allocated.