For a friend...

Orville

Hi,

Been speaking to an ex of mine just recently. We do NOT have kids together i must add :-).

She didn't go into much detail but she was telling me about her split from her partner. I know him from years ago. He went out with her after me i must add but all this was 20 yrs ago.

They have two kids together. What she said to me about maintenance from him did not seem right so i am asking you guys for advice.

He is self employed. he is apparently paying himself minimum wage and basing his payments to her on that. He or the company earn loads more then that as she used to be the company secretary and he is always working so does not see the kids regulary.

Now is there a way the csa can find out the company earnings and base their calculations for maintenance on that rather then just him paying minimum wage and keeping the rest..?

Crellow4

If he's self employed then his assessment is based on the profits of the business, NOT what he 'pays' himself. If he's a Director of a Ltd a Company then he will be assessed on what he pays himself - NOT the trading profit of the company. If your friends ex falls into the second group then she can apply for a Variation to look at his lifestyle, whether he diverts income or if he receives Dividends

Orville

Crellow4 wrote: »

If he's self employed then his assessment is based on the profits of the business, NOT what he 'pays' himself. If he's a Director of a Ltd a Company then he will be assessed on what he pays himself - NOT the trading profit of the company. If your friends ex falls into the second group then she can apply for a Variation to look at his lifestyle, whether he diverts income or if he receives Dividends

So legally speaking if he is a director of a ltd company he can pay himeslf NMW and she is only entitled to a percentage of that?.

She says he takes the kids away on holiday etc at least once a year and has his own house

DUTR

Orville wrote: »

So legally speaking if he is a director of a ltd company he can pay himeslf NMW and she is only entitled to a percentage of that?.

Yes

She says he takes the kids away on holiday etc at least once a year and has his own house

That has little to do with it, and be careful you maybe a hero now, but then can become the enemy later.
Each CSA case is based on it's individual merits, so think % not ££s to avoid dissapointment or greater dissapointment.

Crellow4

She can apply for a Variation to consider Dividend income though.

CSAworkerx

perfectly legal to pay yourself minimum wage to avoid high tax, then pay yourself dividends to reflect your real income, As mentioned by others she needs to apply for a variation on the fact he pays himself dividends, we are not obliged to ask the question on the original application even if were told he is a director, Its up to the pwc to tell us he pays himself dividends.

PlayingHardball

My advise to your ex would be to ring the CSA and ask them to send her out a variation form, complete it stating all the various reasons for applying, i.e. 'lifestyle inconsistent with earnings', here is a link which I found on another thread kindly provided by another forum follower:

http://www.dwp.gov.uk/docs/o-9321.pdf

I came out successfull with a variation application as I was able to prove the my ex's declaried self employed earnings of '£500' per month couldn't possibly support his £1400 per month rental property, as well as the one he owned in another country. Easily proved through NetHouse price which give rental estimates for properties, land registry searches, etc.

If your ex can prove he can't live on minimum wage then she has a case for applying for a variation.

Yes it can be a long drawn out process, one that I didn't mind going through in order to ensure that the other parent in my child's life payed an appropriate amount towards the costs of his child.

Please pass the forum details onto your ex, everyone on here were invaluable to me with advice and solid information about CSA law and practice and enabled me to know my rights regarding child support.

Orville

PlayingHardball wrote: »

My advise to your ex would be to ring the CSA and ask them to send her out a variation form, complete it stating all the various reasons for applying, i.e. 'lifestyle inconsistent with earnings', here is a link which I found on another thread kindly provided by another forum follower:

http://www.dwp.gov.uk/docs/o-9321.pdf

I came out successfull with a variation application as I was able to prove the my ex's declaried self employed earnings of '£500' per month couldn't possibly support his £1400 per month rental property, as well as the one he owned in another country. Easily proved through NetHouse price which give rental estimates for properties, land registry searches, etc.

If your ex can prove he can't live on minimum wage then she has a case for applying for a variation.

Yes it can be a long drawn out process, one that I didn't mind going through in order to ensure that the other parent in my child's life payed an appropriate amount towards the costs of his child.

Please pass the forum details onto your ex, everyone on here were invaluable to me with advice and solid information about CSA law and practice and enabled me to know my rights regarding child support.

Thank you, just one more question. Was your ex still paying you while this variation application was going on?.

If so did they back date the difference between the old award and the new award from the date you put the application in?.

Thank you....

Crellow4

A Variation can be applied for verbally - she only needs to 'phone. The effective date of the award will be the date she applies or earlier if she applies within 28 days of an existing decision as the Variation application will revise the earlier award.

PlayingHardball

Orville, no he wasn't.

Crellow4, no I don't believe this is correct, you have to complete a fairly lengthy variation form.

You can however inform the CSA of a CoC over the phone (change of circumstance)

Crellow4

I can assure you it is correct, a Variation can be verbal, in a letter or by completing the lengthy form - the legislation covers the effective dates of Variations dependant on how the application is made.
Often letters of appeal are treated as applications for Variation.