Upper Tribunal and my own Ltd Company

CSA_Help

I wish you very best of luck anyway. I take it you won your appeal at the first tribunal or the pwc lost her appeal. Interested to know how this pans out.

Soubrette

I think there are two points that your ex could be arguing.

Your ex could argue that as the director and shareholder of your ltd company you have the ability to control the amount of income that you are able to receive from your company and so you are choosing to not pay yourself an equitable income purely to avoid paying child support. The veil of incorporation should therefore be lifted as you are in effect, the company ie all company income will be filtered to you via expenses, salary or dividends less any tax paid, also the company cannot survive without you so although legally it is a separate entity, in practice without you, it cannot exist. (note that IR35 also allows the corporate veil to be lifted by HMRC, this is not a power made up purely for the CSA to use).

The second argument depends on how much you have in your company. If it is over something like £64,000 then the PWC can argue that these assets should be taken into account into any maintenance calculation. Again the thrust of the argument would be that although it is the ltd company's money, you are the owner of that company therefore the company is an asset that can be realised.

CSA_Help

Soubrette wrote: »

I think there are two points that your ex could be arguing.

Your ex could argue that as the director and shareholder of your ltd company you have the ability to control the amount of income that you are able to receive from your company and so you are choosing to not pay yourself an equitable income purely to avoid paying child support. The veil of incorporation should therefore be lifted as you are in effect, the company ie all company income will be filtered to you via expenses, salary or dividends less any tax paid, also the company cannot survive without you so although legally it is a separate entity, in practice without you, it cannot exist. (note that IR35 also allows the corporate veil to be lifted by HMRC, this is not a power made up purely for the CSA to use).

The second argument depends on how much you have in your company. If it is over something like £64,000 then the PWC can argue that these assets should be taken into account into any maintenance calculation. Again the thrust of the argument would be that although it is the ltd company's money, you are the owner of that company therefore the company is an asset that can be realised.

Well done Sou

It's as clear as mud for me:T

IR35 reveiws are good fun also

LittleJohn

Thanks Soubrette, that sounds about right, that is the sort of thing I am reading between the lines in the case given as an example.

LJ

Soubrette

If that is the case then I would assume the first argument would be easily refuted if you have always kept a certain amount in the company for training, upgrading equipment etc. It will be much harder to argue if things have changed at about the same time as child maintenance became due.

To the second, the only argument I can think of is that CSA is not supposed to include assets that are necessary for your business - but to include the Ltd company in that seems weak.

I'm no solicitor though.