Ltd companies and CMS

platypuskn

Hi,
I'm looking for some advice on how to get a fair amount of child maintenance for my two children. Their father owns a limited company, and his income is approx £35k a year between salary and dividends. In the year prior to me claiming CMS (2018-19) he stopped taking dividends and took all the money in salary. This was a way to stop me also receiving dividends as a shareholder (we used to work together). As soon as he made the CMS claim in 2019 he dropped back to minimum wage instantly. Therefore the payments were calculated based upon minimum wage which seemed very unfair.

I read that dividends can also be taken into account, but that this is delayed by a year, so I put in a variation request asking for the previous years dividends (2017-18) to be taken into account. This was initially successful and then he appealed and the amount was dropped back to being based upon just minimum wage. I assume this was because by that point it was May and he had his next year of accounts (2018-19) and therefore these showed no dividends for that year. In other words he got away with taking the low wage from the present month and the nil dividends from the previous year! I was told there was nothing I could do about it despite me submitting evidence that for the last numerous years he'd earned approx £35k. 

So I've just had my renewal. It's looking like they are taking the high salary from 2018-19 as a basis and nil dividends. I assume he will appeal this arguing that his salary is now no longer at those high levels of the 2018-19 years and back to minimum wage. If you're still with me at this stage... which year of dividends will they use if I ask for a variation? He will obviously be in no rush to make up his 2019-20 accounts to show he's taken dividends so does that mean he'll get to use the 2018-19 ones again which show no dividends? Therefore my kids missing out on two full years of sensible level of payments?!?

DUTR

Make your mind up, either they are both of your children or just yours?
They work on the basis of the most recent P60.
Contributing child support is not a punishment, make at that way and you will often come up against resistance.

cat38_2

If if he appeals the decision & yet again reverts back to minimum income, apply for an additional income variation for both unearned & diversion of income, this should catch both dividends or any other type of diversion (such as directors loans or diversion to another. If you are unsuccessful take it further by appealing to HMCTS tribunal where the corporate veil can be lifted.