Child Maintenance Service

Information about the paying parent's gross income is taken directly from HM Revenue and Customs (HMRC) for the latest tax year available. This allows calculations to be made quickly and accurately. Any income subject to income tax including bonuses and overtime received by an employed paying parent, is included within their gross weekly income when calculating a child maintenance liability.

For self-employed paying parents, the gross income used in a maintenance calculation is provided by HM Revenue & Customs (HMRC) in the first instance. HMRC will provide details of the gross taxable profit of the paying parent's business, for the most recent complete tax year.

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.

Variations legislation allows the Child Maintenance Service to look at some circumstances which are not covered by the basic maintenance calculation. Either parent may apply for a variation at any time during the life of their case, provided enough information for an appropriate ground can be identified. If a variation application is successful, the maintenance calculation will be adjusted accordingly.

Cases involving complex income can be investigated by the Financial Investigation Unit. This is a specialist team which can request information from financial institutions (such as banks, investment companies and mortgage companies) to check the accuracy of information that the CMS is given. If any discrepancies are found, then they can implement a correct maintenance liability that is supported by CMS legislation

The Department has been conducting a review of the child maintenance calculation to make sure it is fit for purpose and reflects today’s social trends. The review will also consider the treatment of unearned income and assets within the automatic calculation.