What to Consider when Making an Application for Child Maintenance Private Agreement Between you and you Ex-Partner An Agreement can be reached between both parents about financial provision for a child/children. The government encourages this and we take the view that it is far better than making an application through the CMS if you can agree. This means that you both decide when and how you will support your child/children and the Child Maintenance Service (CMS) does not get involved. You should note that Agreements does not just have to cover the money that is to be paid, but they can also deal with the child’s day to day care and who is to fund the cost of school uniforms and so on. If separated parents cannot agree, or if a family-based arrangement subsequently breaks down, there are other options you can resort to. Arrangements through the CMS If you (parents) are unable to reach an agreement directly between you then you can approach the CMS for assistance. This calculates how much and when child maintenance should be paid. The authority can also collect child maintenance from one parent and pay it to the other. At the moment, the service is currently not free because the government has introduced charges for using the service and this came into force in spring 2014. Now an application to the CMS for child maintenance will incur a fee of £20 plus 4 percent of the maintenance paid to the receiving party (PWC). Similarly, the Non Resident Parent (NRP) has to pay an extra 20 percent on top of his liability. So for example, if you are liable to pay £100 in maintenance you pay £120 to the CMS and they keep £24 and pay just £96 to the Parent With Care (PWC). However, if it can be agreed between the parties, you can elect for Direct Pay. This means the CMS will calculate liability but you will arrange payment between you. Please note that the approach that the CMS will take in regard to the assessments and collection of child support is very different to the approach previously taken by the CSA. What Services CMS Offer: Direct Pay (known as “Maintenance Direct” under the CSA system) These are financial arrangements that the CMS help you to set up but which you manage between yourselves. The CMS calculates the amount payable but won’t otherwise get involved. Collect & Pay (known as the “Calculation & Collection” service under the CSA system) These are financial arrangements that the CMS will set up and then manage. The CMS calculates the amount payable and, where necessary, collects the maintenance from one parent and pays it to the other. If payments aren’t made on time, a range of enforcement actions can be taken for collection. The CMS will charge the PWC 4 per cent from every payment received from the NRP. The NRP will pay an additional 20 per cent on top of each payment made through the CMS. How is child maintenance worked out? Under the new system, the CMS now looks at the paying NRP’s gross income using details provided to HM Revenue & Customs (HMRC) by the paying parent, their employer or accountant. The paying NRP’s income will be reviewed annually by the CMS in order to determine whether the amount of child maintenance is still accurate. Any changes will be applied automatically. For gross income up to and including £800 per week, child maintenance will be payable as following: 12% for one child 16% for two children 19% for three or more children For gross income of between £800 and £3,000 per week, child maintenance is payable at the following rates: 9% for one 12% for two 15% for three children or more As under the old system, deductions are applied if there are other children living in the payer’s household (for example, children of a new partner or step-children) and for any nights that the child stays with the payer. Note that parents on low incomes or who are in receipt of certain benefits pay a flat rate of child maintenance. This is currently £7 per week. Where the child spends equal time between both parents, the parents are not required to pay maintenance to each other. Age of child The upper age at which children can qualify for child maintenance is their 20th birthday. If you require advice on any child support matter, please contact David on 0754 0062 567 or email me confidentially at info@selwynslaw.com