Does your final financial order contain a child maintenance order or a global maintenance order, and 12 months have passed since that order was made?
If so, you are entitled to apply for an assessment of child maintenance via the CMS, the Child Maintenance Service.
The CMS decision will then replace the provisions of the court order, and you will have to comply with the CMS’ decision rather than the court order.
The CMS calculation follows specific criteria, and is based on your total gross income, after pension contributions. The CMS will access HMRC records to establish income. If you make pension contributions yourself, in addition to those made via your payslip, then you will need to inform the CMS about these to ensure they are deducted from your income.
If you earn between £200 and £800 per week, before tax and after pension payments, you will pay 12% (1 child) or 16% (2 children) of this income in child maintenance.
If you earn between £800 and £3000 per week before tax, then you pay 12% up to £800 and 9% for the amount above that (1 child) or 16% up to £800 and 12% for the amount above that (2 children).
If you earn over £3000 per week then different rules apply.
The online calculator will work out for you your child maintenance liability. It will reduce the amount based on the number of nights that the child spends with the paying parent. This may be 1/7th, 2/7th or 3/7th reduction for up to 174 nights per year.
Child maintenance is payable until your child leaves approved education or training, up to the age of 20. The period of study has to be for more than an average of 12 hours a week, and it includes A levels and NVQs up to level 3. Approved education does not include advanced education, such as a university degree or BTEC higher National Certificate. If your child studies A levels and then goes to university, your child maintenance liability ends when they leave school.
Whether it is in your interests to switch from court ordered maintenance to CMS is dependent on a number of factors including your income, your child’s stage of education and the nature of the court order that you agreed.
A warning though: you should bear in mind that the Child Maintenance Service system is largely automated and there is very little discretion involved in the system. This does mean that if, for example, you have a complicated income structure, involving the Child Maintenance Service may not be in your interests. The system works best for PAYE tax payers, where the evidence confirming your income and the number of nights that the children spend with you is clear and incontrovertible.
