Can I go through CSA my ex self employed

iammumtoone

My ex does pay maintenance but I know it is no where near 15% of his income.

Does any one know how the CSA will access a case where a nrp is self employed. I am guessing they would just go on the money he 'declares' which will be the wrong figure, he also does work on the side etc and has a good account who makes sure the amount he pays tax on is as low as it can be (as I suppose all accountants do)

Do the CSA take the figure he pays tax on as income or the original figure before his tax allowances are made?

365days

They take the figure he supplies to HMRC.

If he's paying something already I'd be tempted to leave it at that.

iammumtoone

365days wrote: »

They take the figure he supplies to HMRC.

If he's paying something already I'd be tempted to leave it at that.

Yes but he would have to declare both figures to the HMRC the original amount and the taxable amount which one will the CSA use?

(I realise there is nothing I can do about the jobs on the side)

Yes I thought the advise might be to leave it as he is paying something. But the amount is no where even close to what he would be paying me if he was earning that in a 'normal' job where he got a monthly wage.

He also has considerable savings and owns two houses outright.

Crellow4

My first suggestion would be to talk to your ex about increasing the payments. If this is not fruitful then you could come through CSA and we would use the most recent Tax Return. If you feel this is not a true reflection of his earnings you could use the Variation scheme to pursue a claim on the grounds of Diversion of Income/Lifestyle Inconsistent. My expectation is that this would fail in the first instance due to lack of evidence. I would advise you appeal this decision and hope you were appointed a financial member by the Tribunal Services.
This is a drawn out process, guaranteed to adversely affect the relationship you have with your ex - please see if you can negotiate first.

Crellow4

The savings and houses could fall to be taken into account as Assets. If the aggregated net value exceeds £65000 then they could be assessed at 8% per annum, thus producing an additional source of income.

HoneyNutLoop

Just to add, the income used would be his net income. So this would be after the accountant has ensured all allowable business expenses have been deducted from turnover, to arrive at his taxable profits, then less his tax liability, NI contributions and any pension contributions.

iammumtoone

Crellow4 wrote: »

The savings and houses could fall to be taken into account as Assets. If the aggregated net value exceeds £65000 then they could be assessed at 8% per annum, thus producing an additional source of income.

So does that mean that for every £65K, 8% (5,200) will be added to yearly income. Meaning he would need to pay me 15% (780) per year or £65 per month.

If that is the case he only just pays me enough what his accents would cost him and I haven't started on his wage yet.

I take it they would discount one house as he lives in it? or would it still be included as it is an asset (as apposed to someone who is paying a mortgage and doesn't own yet)

Do the CSA have powers to get a house valued and contact banks for evidence of savings and investments? He would not give this information willingly.

iammumtoone

I know he will not pay me any more if I just ask but is the above information (especially about assets) written down anywhere that I could show him. He certainly won't want anyone poking their noses into his money so if I could prove I would get it he might just pay me a bit more.

365days

It has taken me 12 years to get money from my NRP who is self employed.

Self employed are notoriously difficult to deal with. He could have his other property listed as a business address for example. With a good accountant the possibilities are endless. Does he have a new partner? He could always say that it was her money that financed the property etc etc etc.

Depending on your relationship with NRP and on how much you need the extra money. I would think very long and hard about getting the CSA involved.

Prothet_of_Doom

Are you saying your ex is knowingly commiting tax fraud?
If so, and you haven't shopped him, then are you not a party to his fraud ?
Is he self employed? or Ltd company?
Easy to hide cash jobs in either, but Ltd it's easy to pay yourself less and keep money in business, which at a later date you choose to take out. Or either way pay into a pension thus making declared income lower.
Cash jobs not declared ? Evasion ! Illegal !
Cash not taken out of business ? Avoidance and prefectly legal.

If I was your ex's accountant I know that I'd advise the later.

iammumtoone

Prothet_of_Doom wrote: »

Are you saying your ex is knowingly commiting tax fraud?
If so, and you haven't shopped him, then are you not a party to his fraud ?

No I am not party to his business accounts, for all I no he may actually declare his cash jobs (I don't have any evidence he doesn't). I have to have dealings with him we have a child together he is controlling and can be nasty. Have you any idea what my life would be like if I reported him to the tax man?