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Everything you need to know about the UK Child Maintenance Service
7 articles
CalculationsDo Pension Contributions Reduce Child Maintenance? Yes
Pensions come off your assessed income, but only automatically in some schemes. Pay into a personal pension and the CMS will not know unless you tell them.
Sole Trader vs Limited Company: Why Your CMS Bill Differs
Same profit, five times the difference in maintenance. Why directors are assessed on salary alone, and the free variation that closes the gap.
Self-Employed? How the CMS Really Works Out What You Owe
The CMS uses taxable profit from your Self Assessment, which can be two years out of date. How to get that changed, and which expenses actually reduce it.
Company Director? The CMS Only Counts Your Salary
Dividends, retained profits and director's loans sit outside the standard calculation. The free variation that pulls them back in, and when it succeeds.
Is Child Maintenance Taxable? No, and Nobody Declares It
You pay no tax on maintenance you receive, and you get no relief on maintenance you pay. What that means for your benefits and your tax return.
What Counts as Income for Child Maintenance? And What Doesn't
The CMS uses gross income straight from HMRC. Bonuses and overtime count. Your new partner's wages do not. Dividends only count if someone asks.
How Is Child Maintenance Calculated? The Full CMS Formula
12% for one child, 16% for two, 19% for three. That is the headline. The income bands, deductions and shared care rules change the real figure.