CMS and notional income calculations.

[jscymru8]

Hi. Newbie here. I am in the process of going through a CMS tribunal. Where I have been asked to provide my bank statements. These will be disclosed to my ex as well as the tribunal. ( which I’m not happy about tbh) the bank statements will show that I have purchased a fixed rate bond of over 40k on which I’ve been earning 5% taxable. two 15k payments over 2 financial into a cash ISA paying 4.5% interest. Plus 13k in to premium bonds ( which I assume are classed as cash?) My question in will I b liable to pay notional income of 8% on the assets? As 2 of them are over the 31250k threshold. They are earning interest which is paid into my bank account every month. This will also show on the statements. Which is why I’m not sure if they qualify for notional income? As they are technically income paying?..I can also prove that a bit of the isa and premium bonds investments were purchased with funds already subjected to CMS deductions as I bought them with my wages whilst the CMS case has been open.
Any advice or info would be appreciated . No clear info online and the CMS aren’t a great help

 

[Roblox]

Hi

This is linked in another thread it may help

Child Maintenance: When is capital, income?

Reading a recent case from the Child Maintenance Tribunal, I considered it worth flagging up that the Child Maintenance Rules changed in 2018, regarding

osborneslaw.com

You can also search the forum for notional income and threads will come up

I don't think we've had anyone really been hit with it yet but more the hypothetical of what could happen. As you mention CMS general staff seem to be pretty clueless on the whole concept.

 

[jscymru8]

Hi

This is linked in another thread it may help

Child Maintenance: When is capital, income?

Reading a recent case from the Child Maintenance Tribunal, I considered it worth flagging up that the Child Maintenance Rules changed in 2018, regarding

osborneslaw.com

You can also search the forum for notional income and threads will come up

I don't think we've had anyone really been hit with it yet but more the hypothetical of what could happen. As you mention CMS general staff seem to be pretty clueless on the whole concept.

Thanks for the info. Yeah I can’t find any cases that match mine tbh…I’m getting mixed information ..may have to disclose my bank statements and go to the tribunal and see how it goes. It’s worth noting that I do pay CMS based on my PAYE wages…plus I pay for a 2nd child via a family based arrangement. So I’m not trying to dodge my responsibilities. I’d just like to know what I’m potentially gonna b paying

 

[Peanut 21]

Are there any financial advisors that specialise in this I wonder?

It's made complicated on purpose I feel.

I also wonder as well about if people can move money into a child's ISA to prove they're paying towards their kids future?
Sorry that's just me thinking out loud and veering off your original question.

 

[Roblox]

I think the case law surrounds a very rich family that were basically manipulating the rules to avoid CMS. I do wonder if there's really an intention to capture regular people like ourselves.

It could be investments or excess funds from a house sale. It does seem a grey area to me.

 

[jscymru8]

It’s a minefield….also I’m not sure if the whole asset is calculated at 8% after 31250k or if it’s just the part that’s over threshold….?…I’ve found some info on a government website that suggests it’s the whole asset