What Counts as Earnings?

How Child Maintenance Is Calculated from Your Income

The Child Maintenance Service (CMS) works out how much child maintenance a paying parent owes based on their income. This typically means looking at earnings from employment or self-employment, though other income sources can also count, including rental income, dividends, and certain benefits depending on individual circumstances.

When payments are not made voluntarily, the CMS has several enforcement options available. One of the most commonly used is the Deduction from Earnings Order, which takes money directly from your wages before you receive them.

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What Is a Deduction from Earnings Order?

A Deduction from Earnings Order (DEO) allows the CMS to collect child maintenance straight from your pay. Your employer deducts the amount owed and sends it to the CMS, which then passes it on to the parent with care.

This method is similar to an Attachment of Earnings Order used for other debts, such as county court judgments or unpaid fines. The key difference is that a DEO applies specifically to child maintenance.

Your employer is legally obligated to comply once they receive a DEO. Employers who refuse to make the required deductions can face prosecution and may be ordered to pay a penalty. They can also be held liable for any arrears that build up as a result of their failure to act.

A DEO can provide a straightforward way to keep on top of payments without having to remember to transfer money each month.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

What Counts as Earnings?

The definition of earnings for child maintenance purposes covers more than just your basic salary.

Earnings typically include:

• Wages and salary from employment
• Overtime pay
• Bonuses and commission
• Sick pay and statutory sick pay
• Holiday pay
• Payments for piece work or shift allowances

Some types of income are usually excluded from the calculation. These may include certain expenses paid by your employer, redundancy payments, and some pension contributions. The rules around what counts can vary depending on your specific circumstances.

If you are self-employed, the CMS will look at your taxable profits rather than earnings in the traditional sense. This figure is usually taken from information held by HMRC, based on your most recent tax return. Business expenses and losses may affect how your income is calculated, so keeping accurate records is important.

Protected Earnings and Challenging Your Assessment

The law sets limits on how much can be taken from your wages through a DEO. You are entitled to keep a minimum amount, known as your protected earnings rate. This ensures you can still cover basic living costs.

The exact amount you keep will depend on your income level and personal circumstances. The CMS cannot take so much that you fall below this protected threshold.

If you believe the deductions being made are incorrect, or that your income has been calculated wrongly, you can ask the CMS to review your case. You will typically need to provide evidence of your actual earnings, such as payslips or tax returns. If you remain dissatisfied after a mandatory reconsideration, you can appeal to a tribunal.

For current figures on maintenance rates and thresholds, check the GOV.UK website. The CMS also has a child maintenance calculator that can give you an estimate based on your situation.

If you have questions about how your earnings are being assessed or how a DEO affects you, the CMS can explain the calculations. Citizens Advice can also offer free guidance on child maintenance matters.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Child Support Rights Checker lets you answer a few questions about your situation and get a clear summary of your child maintenance rights and options. Try it now →