What Is Gross Income for Child Maintenance?
Quick Answer
Gross income for child maintenance is your total taxable income before tax is deducted. This includes your salary, bonuses, overtime, self-employment profits, and dividends. Pension contributions are deducted before the calculation. Benefits and your partner's income are not included.
What Counts as Gross Income?
The Child Maintenance Service (CMS) uses your gross taxable income from HMRC records. This means income that's subject to income tax, before any tax is actually deducted.
Income That IS Included:
- Employment income: Salary, wages, overtime, bonuses, commission, tips
- Self-employment: Trading profits after allowable business expenses
- Company directors: Both salary AND dividends from your company
- Rental income: Profit from property after expenses
- Pension income: If you're already receiving a pension
- Taxable benefits: Statutory sick pay, maternity/paternity pay
Income That is NOT Included:
- Most benefits: Universal Credit, Child Benefit, Housing Benefit, PIP, DLA
- Partner's income: Your new partner's earnings are completely excluded
- Tax-free income: ISA interest, premium bond wins
- Student loans: Maintenance loans are not income
Deductions Before Calculation
Pension contributions are deducted from your gross income before the maintenance percentage is applied. This is the only automatic deduction.
Formula: (Gross Income - Pension Contributions) ÷ 52 = Weekly Income for CMS
Related Questions
Is child maintenance based on gross or net income?
Gross income. The CMS uses your income before tax is deducted, not your take-home pay. However, pension contributions are deducted first.
Does overtime count towards child maintenance?
Yes. All taxable employment income including overtime, bonuses, and commission is included in your gross income figure.
Are dividends included in child maintenance calculations?
Yes. If you receive dividends from a company you own or control, these are added to your gross income for child maintenance purposes.