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

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

The First-tier Tribunal erred in law by failing to demonstrate that it applied the correct legal test under Regulation 71(1)(b) of the Child Support Maintenance Calculation Regulations 2012, specifically by not considering the reasonableness of pension contributions and company expenses in the context of the parent's obligation to support their children. The Tribunal's reasons did not show that it balanced the parent's retirement provision against the resources available for child support.

Parties
Appellant: SM; First Respondent: The Secretary of State for Work and Pensions; Second Respondent: B
Jurisdiction
England and Wales
Judgment Date
14 November 2025
Procedural Posture
Appeal / Upper Tribunal Decision on Appeal From First Tier Tribunal
Outcome
Appeal allowed; First-tier Tribunal decision set aside; case remitted for rehearing by a differently constituted panel.
Legal Topics
Child Support, Maintenance Calculation, Diversion of Income, Pension Contributions, Company Profits, Tribunal Procedure
Family Law Social Security Law Child Support Maintenance Calculation Diversion of Income Pension Contributions Company Profits Tribunal Procedure

Case Brief

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Parties

SM

Appellant

The Secretary of State for Work and Pensions

First Respondent

B

Second Respondent

Procedural Posture

Appeal / Upper Tribunal Decision on Appeal From First Tier Tribunal

Legal Issues

  1. 1 Whether the First-tier Tribunal applied the correct legal test under Regulation 71 of the Child Support Maintenance Calculation Regulations 2012 regarding diversion of income.
  2. 2 Whether the Tribunal gave adequate reasons for its findings on pension contributions, company share transfers, and business expenses.
  3. 3 Whether the Tribunal erred in its calculation of dividends paid to the Second Respondent's spouse.

Ratio Decidendi

The First-tier Tribunal erred in law by failing to demonstrate that it applied the correct legal test under Regulation 71(1)(b) of the Child Support Maintenance Calculation Regulations 2012, specifically by not considering the reasonableness of pension contributions and company expenses in the context of the parent's obligation to support their children. The Tribunal's reasons did not show that it balanced the parent's retirement provision against the resources available for child support.

Court Disposition

Appeal allowed; First-tier Tribunal decision set aside; case remitted for rehearing by a differently constituted panel.

Orders

  • The decision of the First-tier Tribunal is set aside under section 12(2)(a) and (b)(i) of the Tribunals, Courts and Enforcement Act 2007.
  • The case is remitted to the First-tier Tribunal for rehearing by a differently constituted panel.