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Child maintenance and salary sacrifice. Does anyone know how this works? I’m going round in circles talking directly to CMS. From their point of view they say the Paying Parent has to divulge this information to them by completing a form..P11D form. I don’t understand the system, how is this legal in terms of the Receiving Parent?
CMS payments are based on a figure they get from HMRC if Paying Parent has an employer. Salary Sacrifice happens *prior* to Gross Salary being calculated as it is a tax incentive scheme for high earners…So my ex is able to (detail removed by Moderator), receive benefits from quite a few other work financial incentive schemes, health etc, and so reduce his tax liability, but because they only assess on the gross salary package provided by HMRC, he’s now also paying lower CMS payments.
Even though I know, and they know (off the record), they say they need him to complete the P11D form so they know *officially? *Is this correct? Has anyone successfully had salary sacrifice taken into account in their CMS calculations? I’m in this crazy position where the payments have significantly reduced even though his salary has increased (detail removed by Moderator). Thanks.
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Hi Iliketea
Don’t they just know how to ‘work the system’! how frustrating and infuriating this nonsense is.
The P11D is, AFAIK, the only legal submission of benefits, for tax purposes.
Maybe the CMS should be taking on this responsibility of reporting him for not complying with P11D regs, as they are aware that this is potentially fraudulent. Surely working with govt agencies as they do they have a liability upon them to report such possible fraud? IDK, as I’ve only just heard of this ‘salary sacrifice’ term. Although, pension contributions etc, have fallen under this umbrella for some long time meaning that high earners can pay higher sums into their pensions (so, to themselves!) in order to escape tax, child maintenance payments).
His company and he, need to be held to account by them.
I am trying to think of who else could help; Coram may be a possibility? They work for free in the cause of childrens rights, and this is a child’s right to have this maintenance to support their living costs.
Let us know how you get on.
warmest wishes
ts
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Thanks TS, yes I’ll try them, and Surviving Economic Abuse too. There are loads of Benefits in Kind now, especially with the rise of (detail removed by Moderator), they are a big one being used at the moment, and all the benefits that are around that, electricity bills, bonus for being eco, etc etc etc… Potentially a lot of money being diverted but the onus is on the Diverter to tell CMS and complete P11D! Mad.
Thx a lot, its the experience that just keeps on giving, DA.
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oh isn’t it just!
all those benefits though are given a monetary amount that represents the benefit, supposedly so that you can’t avoid paying the tax on it, apart from, yes, pensions, but again, only AFAIK.
Rights of Women, if you can ever get through to them, would also be a good legal resource, but the phone is answered so rarely that I have given up on them personally. I’m sure this isn’t what they’d want, but it is the reality, and we need for our own mental well-being, to deal in realities!
Good luck with this fight, I hope you can cut through this financial treacle!
warmest wishes
ts
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I’m not sure that the cms are being very clear with you. The P11D is a declaration of benefits in kind associated with employment remuneration. Its used between the employer and the tax office, and the employee should get a copy as it is an addition to his P60. So its not a form that the employee completes in that sense, or that the cms would request he complete, but something the employee has a copy of that he can send to them, if he refuses then the duty is on the cms to pursue his employer for the full disclosure and direct deduction of contributions from his pay if necessary.
Its the CMS tht needs pushing on this to go above the employee and pursue the employer.
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His employer would have a copy of the P11D as they produce it, so why aren’t they asking them? It’ll cover things like gym subsidiary, health insurance, car allowance that kind of thing. When my eldest’s dad stopped paying CMS dealt with his employer directly and got a deduction from earnings. He then became self employed to wangle out of his responsibilities. Pretty sure the P11D would be held by HMRC too.
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