Using an umbrella company to avoid child support

Kimberlay

My ex is an airline captain earning £10k per month. He sets up a company, he is the director, the only employee and pays himself £600 pm. He generates a pay slip from his 'company' to 'prove' he's on £609 pm and gives that gleefully to the CSA. They use this pay slip to calculate my maintenance which works out at £100 per month. Appalling behaviour by him, but, the CSA will not listen to me. What advice is there? :mad:

DUTR

Kimberlay wrote: »

My ex is an airline captain earning £10k per month. He sets up a company, he is the director, the only employee and pays himself £600 pm. He generates a pay slip from his 'company' to 'prove' he's on £609 pm and gives that gleefully to the CSA. They use this pay slip to calculate my maintenance which works out at £100 per month. Appalling behaviour by him, but, the CSA will not listen to me. What advice is there? :mad:

Companies have overheads , then anyone worth their salt will wish to reduce their tax liability. Nothing wrong with that, who would want to work and give it 'all' away?
You could apply for a variation, but you have to prove there is a strong variance in assesed income.

tomtontom

DUTR wrote: »

Companies have overheads , then anyone worth their salt will wish to reduce their tax liability. Nothing wrong with that, who would want to work and give it 'all' away?
You could apply for a variation, but you have to prove there is a strong variance in assesed income.

OP is not talking about tax liability, she's asking about her husband avoiding paying for his child!

Kimberlay

He's a pilot. His employer is the airline not himself. He's avoiding paying his children. He's avoiding paying the tax that you and I pay. He pays tax on £600 pm. Explain that to HMRC, and his children, £50 each per month doesn't even cover dinner money!

System

He's wasting over £3k of his tax allowance by only paying himself £600 pm

Kimberlay

I'm not concerned about his tax liabilities guys. I'm concerned that he owes his children a roof over their heads

justontime

He must be working freelance if he has his own company. Technically he must be an employee of his company rather than the airline.

My guess is that he will be paying himself a hefty dividend each month. I think you should apply for a variation to ask for his directors dividend to be taken into account. He will have business costs but if you know what job he does and the aproximate payment for that job you should be able to demonstrate that he is not ploughing all the excess money back into the bisiness. If the variation request is turned down appeal and don't give up.

DUTR

tomtontom wrote: »

OP is not talking about tax liability, she's asking about her husband avoiding paying for his child!

He's not avoiding it though, he is contributing based on his assesable income, the later post about responsible for roof over the head.... the PWC is also responsible for that.
£10k a month would be due a good £4-5K per month in tax.
As I already mentioned the OP can appeal but must have strong case of extra assesable income.

esuhl

Sounds perfectly fine to me... legally speaking. What a great system. (Not.)

The government really need to come up with some kind of system that doesn't let the rich pay less tax than anyone else.

It's a bloomin' conspiracy of the wealthy elite!

System

esuhl wrote: »

Sounds perfectly fine to me... legally speaking. What a great system. (Not.)

The government really need to come up with some kind of system that doesn't let the rich pay less tax than anyone else.

It's a bloomin' conspiracy of the wealthy elite!

He is paying less tax because he runs his own company. There is nothing stopping anybody on a lot less doing the same thing.

I think your gripe is that those who run their own company pay less tax than those on PAYE.

BTW unless he can somehow claim the rest of the £10k on expenses etc then he will be paying corporation tax on it

Kimberlay

Your missing the point........ Pay for your children based on your true, income, it's capped for anyone on a high salary. Which is fine. My children feel insignificant they feel they are not wanted by him. He has not seen them in 7 years. He got a contact order, and then broke it himself. I want advice not judging, please .