Child maintenance including annual bonus of last year in annual review

Hi All,

I got my annual review for 1st April 2021 to 31st March 2022 from CMS which has considered my last year's (2020) gross income including the bonus amount which was paid to me. I do have an annual bonus component for this financial year also but it is not guaranteed that it will be paid by the employer as it is based on company and individual performance and I may not get that even. I am not sure that why I should pay my monthly child maintenance including the bonus amount which I may or may not get in Jan 2022. Can someone please help me on this as it's really stressful that they have bumped up my annual gross income including the potential (may or may not get) bonus of Jan 2022 now and asking me to pay that monthly to my ex-wife starting 1st April 2021.

I would be very grateful if someone can help on this ASAP. Thank you in advance for your advice.

Not what you want to hear but the calculation is correct.

Previous years income is used unless there is a major change, either way, in income, when a change of circumstances review is allowed.

This was introduced to stop the work involved in numerous reviews throughout the year by people stopping and starting overtime, increasing then decreasing pension contributions etc.

If you can come to an amicable agreement with your ex and ditch the CMS do it.

Thank you for the quick response, but I may not even get that bonus in Jan 2022 if the company doesn't perform, so in that case I will be overpaying my ex-wife starting from 1st April for what I am not paid now. Isnt that unfair to me?

It is something that has caused much debate over the years and few that have been involved with CSA/CMS, either as payer or recipient, would describe the system as fair.

You may not receive a bonus in Jan 2022 but then this will be reflected in your assessment in April 2022. Equally you received a bonus in January 2021 that was not included in your assessment that you were paying at the time having been assessed in April 2020.

If you are in a position to come to an amicable agreement with your ex then you could get CMS out of your lives.

The other alternative is to see if your bonus can be paid into your pension scheme, or pay it into a personal pension yourself, so that it falls outside of the assessment.