Child Maintenance Calculation For A Contractor

**kaiser78** · 25 April 2018, 14:28

Originally posted by MrX View Post

Hi all,

Firstly, apologies as I haven't gone through all the posts on this forum to see if this has been answered but my divorce case is being heard imminently so I'd like to know this asap.

I understand that the Child Maintenance Service(CMS) calculate your payment based upon the GROSS income. If I say had a GROSS salary of £25,000 and £50,000 in dividends RECEIVED, would this simply be based on a total of £75,000 or is there some aspect of putting the corporation tax back on the dividend to establish a higher GROSS figure for dividends?

I have no intention of hiding income but I just want to understand what I might be liable for to see if it is possible to actually pay it!

Thanks kindly in advance for your prompt response.

It is all worked out on gross amounts - salary and dividends before tax, as a weekly amount.

There are 2 ways you can run the payment calculation i) use gross salary initially,which is what the CMS calculator asks for only, and then your wife (I presume) would need to apply for a deed of variation to take account of dividends. This though takes time so, ii) and the way I have done it is to factor in salary + dividends gross amount per week in the CMS calculation and get the amount you will be liable straight away.

**kaiser78** · 25 April 2018, 14:55

Originally posted by kaiser78 View Post

It is all worked out on gross amounts - salary and dividends before tax, as a weekly amount.

There are 2 ways you can run the payment calculation i) use gross salary initially,which is what the CMS calculator asks for only, and then your wife (I presume) would need to apply for a deed of variation to take account of dividends. This though takes time so, ii) and the way I have done it is to factor in salary + dividends gross amount per week in the CMS calculation and get the amount you will be liable straight away.

PS - don't ask this on Mumsnet as they will shred you alive...

**d000hg** · 25 April 2018, 16:01

For a start he appears to be a man, so wouldn't be too welcome.

**northernladuk** · 25 April 2018, 16:15

Originally posted by MrX View Post

Hi all,

Firstly, apologies as I haven't gone through all the posts on this forum.

It appears you haven't gone through any at all in the sub section either.

**d000hg** · 25 April 2018, 16:17

Originally posted by northernladuk View Post

It appears you haven't gone through any at all in the sub section either.

What sub-section?

Forums aren't that great at making these things obvious - and since he didn't appear to read his marriage vows that closely why would he read CUK?

**northernladuk** · 25 April 2018, 16:19

Originally posted by d000hg View Post

What sub-section?

General. A quick scan of all the posts in here should have told him this is clearly not the place to post a question..

Forums aren't that great at making these things obvious - and since he didn't appear to read his marriage vows that closely why would he read CUK?

LOL.. Good point well made

**vetran** · 25 April 2018, 18:03

Originally posted by d000hg View Post

For a start he appears to be a man, so wouldn't be too welcome.

depends if he has a beaker!

**BR14** · 25 April 2018, 20:14

Originally posted by vetran View Post

depends if he has a beaker!

there ye go .

**MrX** · 25 April 2018, 20:34

It seems I have caused offence to some people from my post and for that I apologize. Yes indeed I'm a man who simply wants know where he stands financially given my ex had an affair, wanted me out to be with her new partner so it's my responsibility now to try and do what I can to remain in our six children's lives. I am trying to provide a home for them so they can spend time with their dad as it wasn't their fault that the marriage broke down.

Judge me as good or bad. It matters not to me. I just want to do what is best for my children and that's for them to have time with their mum and with their dad. Thanks for the responses thus far.

To clarify, in terms of the figure I plug into the CMS calculator that asks for the weekly gross income is it:
A) (25000 + 50000) / 52
Or
B) (25000 + 50000 * (100 / (100 -19))) / 52

Thanks.

Child Maintenance Calculation For A Contractor