Child maintenance – Benefits in Kind – applying for a Variation

[iliketea]

Hi, has anyone been through this? My CMS payments from ex have reduced over the last three years even though he has had a substantial pay rise. He is driving (detail removed by Moderator) so I think he must have offset using Car Salary Sacrifice. There are a number of other Benefits he gets to reduce his tax liability. My question is can you get the CMS to consider these. He hasn’t changed his address for his work post even though he left the family home (detail removed by Moderator).

I am receiving (detail removed by Moderator)… Any ideas how I can convince CMS to reassess, when I spoke to them on the phone they just kept on saying these are the figures they were given by either him or the HMRC they wouldn’t clarify which. It makes no sense to me. I am already in an over a year long battle to have unpaid payments back which they keep on giving him payment plans and he never sticks to them, and(detail removed by Moderator).  This man earns a lot of money, not self-employed, in a permanent job as a professional. Any advice? I’m so tired of battling with them, Ive already got my local MP involved and they are sorting out the unpaid maintenance but this new information from the Annual Review is now yet another issue to sort out. Losing the will to live. Any advice?

[iliketea]

Wondering if any of these benefits can be considered under “Diversion of Income” that qualifies for a variation application to be considered

[Marmalade]

This is all really technical stuff that depends on a case by case analysis of circumstances.
Your best bet is to go back to CMS, set situation out and ask them.
Also you could try a solicitor to get some general advice. Give them all the figures you have.
I think there are clear guidelines on what the CMS consider when assessing his income but they are the best people to advise you on that. It really does depend on individual circumstances.
Good luck.

[Twisted Sister]

Hi Iliketea

I am sorry, this is insanity isn’t it, that he can get off with this deliberate deviation of funds. Believe me, he’s not the only father trying to wriggle out of his financial responsibilities for his own children. Its disguesting, and I know your frustration with the system thats set up to prevent this from happening.

I also think that your best bet is to tell them, a get a copy of the assessment you have. If they are already doing a collect and pay, can’t they, as a next step (if he’s refusing to mnake payments), go direct to his employer and get the payments deducted at source from his salary. This way, they have all the salient information from the employer too.

Benefits in kind are also treated as salarly and taxable, although come off the topline income.

HMRC should be levying tax on all benefits in kind, submitted under a different form. I don’t know the name of the form, but it should list all taxable benefits, which are then taxed as money received. I guess though, its not on the topline salary figure.

I would tell CMS. Keep on at them because it is like tax evasion, he can be pursued through court for incorrect reporting and underpayments. Especially where he has ability to pay.

Good luck and keep fighting forthis, as once its in place they will do all the rest.

wartmest wishes

ts

[Lifebegins]

Hi iliketea, long time no speak! I had hoped things had settled for you; sadly life goes from one drama to another with these men.

Yet again our experiences are mirroring one another in reduced child maintenance. I am about to deal with this issue shortly but have had other fish to fry with my ex so it’s taken a back seat. However, I have been doing some research.

From what you say, you could make an application for a variation on the basis of diversion of income as any salary sacrifice/benefits in kind would have to be declared to HMRC and could therefore be proved. A company car is one such scenario which is stated as grounds for an application for variation for diversion of income on the gov.uk website.

Also worth checking is if the number of nights spent with your ex is correct in the assessment? This could’ve resulted in a further reduction in child maintenance. And is he having any special expenses taking into account? Again could reduce your payments.

And does he have any assets which could be used as notional income to increase your payments? Just a thought but apparently a percentage of certain assets can be used in this way, which I understand is not widely known, but it could make a big difference to the maintenance he has to pay.

Good luck 🤞🏻 and let us know how you get on xx I will be very interested to hear your progress xx

[iliketea]

@lifebegins! Hello! It was like seeing an old friend when I saw your reply!
Its so “interesting” if that is even the right word, timewise, I’ve had this with other people I know who left at the same time. They are on exactly the same trajectory. Obviously cant say too much here but same with the CMS too. If you need any tips on the unpaid aspects ask away.
Diversion of income is an interesting one and definitely a loop-hole as they do say that about being able to apply for the variation – but they take their figures from HMRC and a ?? Form which annoyingly I have forgotten the name of right this second. But I think employees can “choose” benefits like a car salary sacrifice which is billed as “tax efficient savings” incentive by the employer and so would not be counted in the non-visible taxable figures (which go on the form) like bonuses, medical insurance etc. So its hard to know what evidence they need for the “diversion” of income” variation and if this would count as “diverting to another purpose”… Which is why I was asking if anyone had had experience as when I speak to CMS they just say they take figures from the HMRC and the ?? form so it must be right. grrrrrrr Feel like I could write a book on how to survive post abuse, all their stupid tricks for kicks. Why cant then just go away and get a life?
xx

[Twisted Sister]

Pensions is one I am thinking.

I don’t know if this is listed under ‘benefits’.

Is the form P11D?

If he filters off pension contributions to himself to access later, these don’t attract tax, and I wonder if they also therefore, avoid being declared as ‘salary’.

He is basically, paying himself to avoiding financing his own children. I have no words for that.

[iliketea]

Majorly dodgy??!!! 🙂

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