The Department for Work and Pensions has issued a new Parliamentary update this week
The Department for Work and Pensions has outlined important rules on child maintenance for one key group in a new update. Approximately 1.1 million children were supported by CMS (child maintenance service) arrangements in one three-month period, according to recent official UK government figures.
However, problems arise frequently and parents often face challenges pursuing payments they are entitled to. The BBC’s flagship Panorama TV programme recently poignant accounts of parents battling to get former partners to fulfil their obligations.
One mother informed the news programme she had been forced to rely on food banks and was left facing Ā£10,000 in arrears after the CMS failed to ensure her ex-partner paid child maintenance. The DWP has now been questioned by an MP on what measures can be implemented by the department when there is evidence that a self-employed parent has deliberately under-reported their earnings to diminish their child maintenance obligation.
DWP explains rules on HMRC child maintenance penalties
Lilian Greenwood, the Parliamentary Under-Secretary of State for Work and Pensions, said in a new statement issued on Tuesday: “People who are self-employed are required to keep accurate records of their business income and expenses for tax purposes. HM Revenue and Customs (HMRC) can charge penalties for inaccurate reporting where it results in tax being unpaid. Information about a self-employed paying parent’s income is normally obtained from HMRC.
“Every year the Child Maintenance Service (CMS) conduct a review to determine what should be paid for the forthcoming year and gather new earnings information from HMRC. If a paying parent reports a change in their earnings, or challenges the income provided, CMS require a fully complete and verified Self-Assessment Tax Return, of a more current tax year than that provided previously by HMRC.
“Where there is evidence that income has not been fully reflected in a child maintenance calculation, either parent may apply for a variation. Cases involving complex income, suspected misrepresentation or fraudulent behaviour may be referred to the CMS Financial Investigation Unit, which can obtain information from financial institutions to verify income and assets. Where discrepancies are identified, the CMS can recalculate maintenance and implement the correct liability in accordance with legislation.
“This approach helps ensure that child maintenance calculations are based on accurate income information and that paying parents meet their responsibilities towards their children.”
The website Gingerbread says the CMS can help you if you’ve made your child maintenance arrangements through their service. If you’ve made your own arrangements with your child’s other parent, talk to them (if you can) to find out why they’ve stopped paying.. It explains: “If you can’t do this, or they refuse to start paying again, the CMS might be able to help. Explain that your private arrangement has broken down and you need them to collect your child maintenance instead.”
The site notes that the CMS can pursue outstanding payments, and has the authority to deduct money directly from earnings or benefits, amongst other measures. For more guidance, visit the Gingerbread website.
For further information on appealing child maintenance decisions, the gov.uk web page on the subject.
