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    • p2white
    • By p2white 12th Apr 18, 12:22 AM
    • 1Posts
    • 0Thanks
    CMS and company car scheme problem
    • #1
    • 12th Apr 18, 12:22 AM
    CMS and company car scheme problem 12th Apr 18 at 12:22 AM
    Hi, Ive been paying CSA to my ex wife for 7 years now without a hitch, but the CMS have just contacted me to suggest a new payment that is 140 a month higher than previously.
    The reason they give is that it is now based on gross income not net income.
    My problem with this is that in the tax year they are looking at ( 2016/17 ) I was in a company car scheme called a COS scheme. Which means I dont pay company car tax but instead pay an equivelant amount out of my salary towards the car. No better or worse of than a normal BIC payment.
    However, it has some form of tax benefit for my firm but the way they administor it means they make a payment ( or payments depending on monthly mileage ) into my wages and then take an equivelant payment back on the deductions side. However, in 2 months after I returned the car those payments were around 3000 instead of the normal 350...meaning my gross wages for that year wear inflated by nearly 9k with no benefit to me at all..
    As a result the CMS have included this in my annual calculation as they don't look at ANY deductions other than pension contributions.
    I have tried to explain this to them them but it falls on deaf ears as they say they only take the figures supplied by HMRC and that is that. I cannot afford the figures they want me to pay and as this years wages with be 'only' 24% less than last years then they cannot use this years total figure until the end of the tax year..
    I have no idea where im supposed to find this 'extra'money that i have never earned. They say they will adjust the figure next year when my new annual salary is posted via my P60 but by then I have now idea what will happed as I simply cannot afford the new figures!
Page 1
    • By WYSPECIAL 13th Apr 18, 8:16 AM
    • 361 Posts
    • 148 Thanks
    • #2
    • 13th Apr 18, 8:16 AM
    • #2
    • 13th Apr 18, 8:16 AM
    Have you looked at increasing your pension contributions in order to get to the 25% change threshold? If you're at 24% already it wont cost much.
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