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  1. #1

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    Default Child Support / Maintenance

    Morning all,

    I'd like some advice if possible about whether the Child Support Agency still only takes income into account and not dividends when determining maintenance payments.

    From the (surprisingly) few posts on the topic that I've found, it seems that the CSA can take all income streams into account (which seems fair), but don't often take dividend information into account.

    Do any members have experience dealing with the CSA (that they're happy to share)?

    Many thanks for any replies

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    If they are informed you are a Ltd Co director, the CSA are meant to calculate 'income' based on salary AND dividends, and are meant to use information from your accountant to do so.

    In my experience, the reality appears to be that being a Ltd Co director or self employed is one of the most effective ways of getting around paying child maintenance.
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    From my own investigations into this I believe a lot of the way CMEC work is via magic potions and chicken entrails .......so what they may decide for one person is n't necessarily gonna be the way they do it for everyone else.

    If you are paying yourself BMW and everything else in divis then they are definitely gonna take them into account imo.

    What I want to know is whether or not they would take my partners divis into account (she takes 50%) - a see through ruse I admit but hoping it means I don't end up paying more shoe money to the ex when she gets her next cob-on and asks for them to investigate me again (which they have to do by their own rules everytime the PWC asks even if its once a month)

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    Quote Originally Posted by MaryPoppins View Post
    If they are informed you are a Ltd Co director, the CSA are meant to calculate 'income' based on salary AND dividends, and are meant to use information from your accountant to do so.

    In my experience, the reality appears to be that being a Ltd Co director or self employed is one of the most effective ways of getting around paying child maintenance.
    WMPS

    CSA are authorised to investigate company accounts to ensure the correct or nearer correct maintenance is paid.
    Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

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    Quote Originally Posted by Scrag Meister View Post
    WMPS

    CSA are authorised to investigate company accounts to ensure the correct or nearer correct maintenance is paid.
    Sadly however, from my own experience - child maintenance is wonderfully easy to evade if you're your own employer.
    Practically perfect in every way....there's a time and (more importantly) a place for malarkey.
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    Quote Originally Posted by manclarky View Post
    Morning all,

    I'd like some advice if possible about whether the Child Support Agency still only takes income into account and not dividends when determining maintenance payments.

    From the (surprisingly) few posts on the topic that I've found, it seems that the CSA can take all income streams into account (which seems fair), but don't often take dividend information into account.

    Do any members have experience dealing with the CSA (that they're happy to share)?

    Many thanks for any replies
    The CSA are limited in what income streams they can take into account. In general they do NOT take dividend income into account. However they will do so - in theory at least - where the maintenance payer has an interest in the dividend generating company.

    It is down to the PWC to request it. See page 46. http://www.csa.gov.uk/en/PDF/leaflets/new/CSL301.pdf

    Of course it is entirely possible for somebody to retain the funds within the company and then they won't get included in an assessment anyway. In this case there is at least the slim possibility that applying for a variation may prove fruitful.

    Sadly MP's view would appear to bear out what generally happens in practice.

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    Quote Originally Posted by ASB View Post
    Sadly MP's view would appear to bear out what generally happens in practice.
    There are forum's dedicated to men working out the best way to evade the CSA.

    I can entirely see things from the other side of the fence, as I have male friends having to deal with them - I know they can be a nightmare from that side, too.

    Just a shame it's such hard work when it's the only avenue available to people like me.
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    Quote Originally Posted by h8mmer View Post
    What I want to know is whether or not they would take my partners divis into account (she takes 50%) - a see through ruse I admit but hoping it means I don't end up paying more shoe money to the ex when she gets her next cob-on and asks for them to investigate me again (which they have to do by their own rules everytime the PWC asks even if its once a month)
    From a personal point of view I would rather hope they did take it into account - on the assumption that you are simply diverting what you know to be effectively your income to you partner. However the reality is that they won't, depending upon your lifestyle versus your assessed income this might improve the chances of the PWC being successful at a variation.

    If your case transfers to CMEC then the rules are that it is your taxable income passed to CMEC from HMRC which is used. It is unclear (to me at least) whether salary sacrifice for pension or direct pension contributions will be excluded (as they currently are).

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    Quote Originally Posted by MaryPoppins View Post
    There are forum's dedicated to men working out the best way to evade the CSA.

    I can entirely see things from the other side of the fence, as I have male friends having to deal with them - I know they can be a nightmare from that side, too.

    Just a shame it's such hard work when it's the only avenue available to people like me.
    Also a shame that there are so many assholes out there who WANT to avoid paying for their child/children.

    What kind of person does that?
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    Quote Originally Posted by cailin maith View Post
    Also a shame that there are so many assholes out there who WANT to avoid paying for their child/children.

    What kind of person does that?
    What kind of person indeed! Loads of them it seems...
    Practically perfect in every way....there's a time and (more importantly) a place for malarkey.
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