Company Directors & CSA
jackiegats
Posts: 47 Forumite
My ex-husband is not paying maintenance for our daughter and so I recently approached the CSA for help. He runs a limited company and is a company director. According to the CSA, his accounts show a weekly income of £140 so the CSA have assessed that he needs to pay me £6 a week ...... he lives in a £900,000 house, drives an Audi TT, has had six holidays so far this year that I know of (one of which was six weeks in America), has a gardener, a cleaner and is currently paying someone to decorate his house.
How can this be right? Do the CSA have powers to investigate his company and see what his real income is. He's told me that his mortgage is £600,000 - how can he get that sort of mortgage with an income of £140 per week - is it possible that he has two sets of books?
I'm fuming about this - how can a company director living this lifestyle have to pay only £1 a week more than someone on benefits? It's all wrong but it doesn't seem like there is anything I can do about it.
If anyone can offer any advice on where I go from here I would really appreciate it.
How can this be right? Do the CSA have powers to investigate his company and see what his real income is. He's told me that his mortgage is £600,000 - how can he get that sort of mortgage with an income of £140 per week - is it possible that he has two sets of books?
I'm fuming about this - how can a company director living this lifestyle have to pay only £1 a week more than someone on benefits? It's all wrong but it doesn't seem like there is anything I can do about it.
If anyone can offer any advice on where I go from here I would really appreciate it.
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Comments
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Report him to the HMRC. They are quicker off the ball than CSA and take tax evasion extremely seriously.0
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Does he have a partner? Its possible that he is only paying himself a very low wage but paying her a lot. CSA only want to know what his income is for child maintenence purposes! Don't ask about hers!!MFW 2011 challenge - Aim: Overpay £414.26 a month/£5,000 a year. Overpayment Total to date: £414.26:jMortgage start 28/9/07 £46,217.00 :TMortgage balance as of 25/05/11 £24,490.58 :T
Interest saved as of 25/05/11: £2,849.84 Projected term reduction as of 25/05/11: 9 years 11 months0 -
Is it a LTD company? If so, then you can get copies of his submissions to companies house.
Alternatively, you can gather as much evidence of his lifestyle (eg get car registration number and evidence of his car, postcards from holidays he sends the children - anything) and make an application on the grounds that his lifestyle is inconsistent with his declared income. Also, does he pay himself large dividends? If so then you could ask that this be looked into and ask if they can be taken into account as earnings - if he controls the money then they may well be able to.0 -
Hi jackiegats - I'm in a very similar postition to yourself and I think it's about time that the CSA woke up to the fact that there are thousands of PWC's who are not getting the support they should from the NRP because the NRP is self employed and they are screwing the system in order to pay less to their children0
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Thank you all for your replies.
I agree with Frugallass that the system is all wrong - there must be something that can be done to sort out this loophole where company directors can get away with not supporting their children.
It is a Ltd company and I recently paid £18 to get a copy of his accounts but he seems to be exempt from submitting them for some reason so they don't show much information at all :mad:
I have contacted the CSA again, explaining the situation, and they are sending me a form to complete. They will be investigating further but it seems that he is exploiting a huge loophole in the system so i'm not holding out much hope.0 -
It's a terrible system - the CSA aren't interested in helping and the forms they send are a nightmare to complete (especially when I live 250 miles away from NRP and cannot give any evidence or proof of his income / lifestyle0
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It is all because Ministers naievly believe that ALL NRPs want to pay their ex's for child support, and that the reason that some don't pay, is because of the complexity of it!!! lol. Under CS1 that was cited as being one of the reasons that they thought CS2 would improve compliance - but it hasn't!!!! Ministers just don't have a clue.0
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As mentioned the main areas for a variation are:
Lifestyle (as you have already mentioned, but there have been commssioners decisions that state that any capital and directors loans payments cannot be included so it gets a little more complicated.
Dividends: Anything over £5200 per year can be looked at
Diversion: If his partner has an income from the business when she in reality does not do anything, that he has amazingly stopped taking a salary since the CSA got involved etc. (was he self employed before? Do you have any idea of previous earnings?)
Does he only have one company? I have seen cases where there are multiple companies all paying him a small amount. Check with companies house for all his directorships.
Also ask the CSA to look at whether the company paid him bonuses (separate from dividends) as they should be included.Nothing to see here :beer:0 -
Isn't it absolutely disgusting when NRPs will use any back door they can to provide less for their children, makes you sick doesn't it. I don't know how the pathetic system works when making people pay for their responsibilities but I hope you manage to get the children what they deserve.One day I might be more organised...........
GC: £200
Slinkies target 2018 - another 70lb off (half way to what the NHS says) so far 25lb0 -
it's so wrong but the CSA do absolutely nothing about it
it seems to me that the more honest you are the more the CSA screws you for every penny you have0
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