Q&As

A parent earns overseas income which is not included in their UK tax return, as well as UK income. Will the overseas income be treated as income for the purposes of a statutory child support calculation by the Child Maintenance Service (CMS)? If so, does the parent have a duty to disclose the overseas income to the CMS?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 24/04/2019

The following Family Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A parent earns overseas income which is not included in their UK tax return, as well as UK income. Will the overseas income be treated as income for the purposes of a statutory child support calculation by the Child Maintenance Service (CMS)? If so, does the parent have a duty to disclose the overseas income to the CMS?

Where a person is resident in the UK but earns income or makes capital gains in respect of foreign income or assets, they are ordinarily obliged to declare this income via a self-assessment tax return (Part 8 of the Income Tax (Trading and other Income) Act 2005).

A Child Maintenance Service (CMS) calculation is calculated, at least initially, on declared earnings. The statutory formula is based upon taxable gross annual income (ie income from employment or self-employment, pensions and some benefits). The CMS obtains this information from HMRC for a given tax year and then uses that figure to calculate the child maintenance liability. Where either the paying or receiving parent can show that the figure used from HMRC is at least 25% different from their actual current i

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