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Pensions contributions not showing on CM payment calculation

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  • sheramber
    sheramber Posts: 22,846 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    What is his wage after pension oaymsnt  is deducted? 

    What figure have child maintenance  used ? 
  • crazymoose2000
    crazymoose2000 Posts: 24 Forumite
    10 Posts Name Dropper
    DE_612183 said:
    Sorry - I'm lost here - are we talking about pension contributions being made and Child Maintenance payments - what is the link between the two?
    To work out child maintenance to be paid, CM deduct pension contributions from pay but on my friends calculation the pension contributions are showing as £0 even though he pays £121ish per month so should show over £1400 for the year not £0
  • crazymoose2000
    crazymoose2000 Posts: 24 Forumite
    10 Posts Name Dropper
    sheramber said:
    What is his wage after pension oaymsnt  is deducted? 

    What figure have child maintenance  used ? 
    CM have used the yearly figure WITHOUT deducting the £1456 he paid into his work pension
  • sheramber
    sheramber Posts: 22,846 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    There are three ways to make pension payments. 

    Salary Sacrifice where salary is reduced and payment made to pension by employer 

    Net pay where the pension payment is deducted before tax and nic are calculated. 

    Both these cases  will be reflected in the earnings reported to HMRC 

    These are the cases where CMS say they do need to know about them as the employer has already deducted them. 

    Relief at source payments, which are deducted after tax and nic are calculated. 

    These  are the cases that CM S need to be told about as they are not reported directly  to HMRC.

    If these are the type of payments your friend makes he needs to tell CMS about them as otherwise they don’t know about them. 

    He can contact CMS through his online account

    https://www.gov.uk/child-maintenance-service/sign-in-account
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