Child Maintenance Service: Powers

For self-employed paying parents, the gross income used in a maintenance calculation is provided by HM Revenue & Customs (HMRC). People who are self-employed are required to keep accurate records of their business income and expenses for tax purposes. HMRC can charge penalties for inaccurate reporting where it results in tax being unpaid.

Cases involving complex income can be investigated by the Financial Investigation Unit (FIU). This is a specialist team which can request information from financial institutions to check the accuracy of information the CMS is given. The FIU uses its extensive investigative powers to ensure that families receive child maintenance appropriately and in accordance with the paying parent’s whole income.

If necessary, criminal charges relating to information offences linked to the calculation, will be brought against those who persistently and deliberately evade their responsibility to provide financially for their children.

The department is conducting a programme of work to review the child maintenance calculation to make sure it is fit for purpose and reflects today’s social trends. The review is wide-ranging and includes consideration of a range of issues including bringing the treatment of unearned income and assets within the calculation automatically. Proposed changes which emerge from the review will be subject to consultation.