MD v The Secretary of State for Work and Pensions & Anor

MD v The Secretary of State for Work and Pensions & Anor

The First-tier Tribunal made a material error of law by using an incorrect figure for retained earnings in the year ending 31 March 2023. The correct sum of £18,463 (not £27,812) should have been considered, and after deducting £3,000 as a reasonable contingency, £15,463 should be treated as diverted income and added to the Appellant’s taxable income for child support purposes.

Parties
Appellant: MD; First Respondent: The Secretary of State for Work and Pensions; Second Respondent: HD
Jurisdiction
England and Wales
Judgment Date
06 November 2025
Procedural Posture
Appeal / Upper Tribunal Decision on Appeal From First Tier Tribunal
Outcome
Appeal UA-2024-001427-CSM dismissed; Appeal UA-2024-001428-CSM allowed
Legal Topics
Child Support Maintenance, Variation for Diversion of Income, Tribunal Procedure, Error of Law
Family Law Social Security Law Child Support Maintenance Variation for Diversion of Income Tribunal Procedure Error of Law

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

MD

Appellant

The Secretary of State for Work and Pensions

First Respondent

HD

Second Respondent

Procedural Posture

Appeal / Upper Tribunal Decision on Appeal From First Tier Tribunal

Legal Issues

  1. 1 Whether the First-tier Tribunal erred in its calculation of retained earnings to be treated as diverted income for child support purposes
  2. 2 Whether sums retained in the Appellant’s business constituted unreasonable diversion of income under Regulation 71 of the Child Support Maintenance Regulations 2012

Ratio Decidendi

The First-tier Tribunal made a material error of law by using an incorrect figure for retained earnings in the year ending 31 March 2023. The correct sum of £18,463 (not £27,812) should have been considered, and after deducting £3,000 as a reasonable contingency, £15,463 should be treated as diverted income and added to the Appellant’s taxable income for child support purposes.

Court Disposition

Appeal UA-2024-001427-CSM dismissed; Appeal UA-2024-001428-CSM allowed

Orders

  • The decision of the First-tier Tribunal in SC337/23/00675 is set aside for error of law and remade: £15,463 retained as capital in the Appellant’s business at 31 March 2023 is to be treated as diverted income and added to taxable income.
  • The Secretary of State for Work and Pensions is to recalculate the child support maintenance decision of 10 April 2023 using the amended earnings figure of £15,463.