Discussion
This has happened to a close friend there ex husband chose to use the CSA to calculate there child maintenance payments. His payment was calculated and was more than she expected. He owned his own business and 2 months later he gave that business to his sister and put him self on a very low wage therefor dramatically reducing his payments. (he still runs the business)
This case went to court and basically the judge added the dividend that the sister was getting (which she was giving back to her brother) and added it to his wages. I thought it strange but the amount now payable was roughly what she wanted case was closed.
2 years later he writes to the court telling them he has a wage increase but at the same times deducts the dividend of his wages so in fact he has a reduced salary.
This cases then goes back to court. At the first hearing she finds out he has started another business with a friend and once he realises it's going back to court transfers his director ship to his son. He also pays the son extra money in his wages(son works for him) on the basis that he repays some money back minus the tax and NI
After the first hearing but before the second he then transfers his shares to the son and the son gets the dividend. The son is told not to tell anyone.
As it stands son is now messed up in the head and she does not have any faith in the Judge
Would appreciate and advice and also wondering if he has broken any law.
This case went to court and basically the judge added the dividend that the sister was getting (which she was giving back to her brother) and added it to his wages. I thought it strange but the amount now payable was roughly what she wanted case was closed.
2 years later he writes to the court telling them he has a wage increase but at the same times deducts the dividend of his wages so in fact he has a reduced salary.
This cases then goes back to court. At the first hearing she finds out he has started another business with a friend and once he realises it's going back to court transfers his director ship to his son. He also pays the son extra money in his wages(son works for him) on the basis that he repays some money back minus the tax and NI
After the first hearing but before the second he then transfers his shares to the son and the son gets the dividend. The son is told not to tell anyone.
As it stands son is now messed up in the head and she does not have any faith in the Judge
Would appreciate and advice and also wondering if he has broken any law.
Morals of a weasel, but as far as I can see, if he has been mostly honest about the dividends coming back to him, mostly legal.
Her own silly fault for not going to the CSA. They're
but by heck, they work for female NRPs 
If it's been longer than a year, fairly straightforward to brush the judicial system completely aside. Astonishing, but there you go. Of course, he might well then just give up trying to earn money, and stay as a minimum wage grunt working for his son until the child is 18, but a percentage is what she is entitled to, and 15% of f&*k-all is a percentage (my ex learnt that one when I got made redundant)
Her own silly fault for not going to the CSA. They're
but by heck, they work for female NRPs If it's been longer than a year, fairly straightforward to brush the judicial system completely aside. Astonishing, but there you go. Of course, he might well then just give up trying to earn money, and stay as a minimum wage grunt working for his son until the child is 18, but a percentage is what she is entitled to, and 15% of f&*k-all is a percentage (my ex learnt that one when I got made redundant)In the first case he did not admit that the dividend was being paid back to him it came to light because his sister was paying the mortgage. So judge added it to his wages to try and get the figures to fit.
The CSA is pathetic if you know what your doing he just sent a payslip in and they adjusted the amount due. Not sure that they know you can have more than 1 job.
The CSA is pathetic if you know what your doing he just sent a payslip in and they adjusted the amount due. Not sure that they know you can have more than 1 job.
He is in a situation where he can manipulate it do there's not a lot you can do. Even people on PAYE try to beat it by taking salary sacrifice for bigger company cars, shopping vouchers etc. CMEC have the power to go to the HMRC but if he's being paid cash from relatives they can't do a lot.
I'd be inclined to tell him you're keeping a nice little dossier on all the wheeling and dealing and that his kids will be given it when they're old enough. If he can live with that then he's not worthy of being called a dad
I'd be inclined to tell him you're keeping a nice little dossier on all the wheeling and dealing and that his kids will be given it when they're old enough. If he can live with that then he's not worthy of being called a dad
They can, have and will take into account anything they are told. If his ex kept schtumm, how would they know anything? They have the legal power to look at lifestyle, and draw their own conclusions as to income, and base their demands on that. My understanding was that if its in the clutches of the CSA, you cannot go near a court - at least that's what I was told by the CSA when I pointed out that our previous arrangement took school fees into account. A decade later...
randlemarcus said:
They can, have and will take into account anything they are told. If his ex kept schtumm, how would they know anything? They have the legal power to look at lifestyle, and draw their own conclusions as to income, and base their demands on that. My understanding was that if its in the clutches of the CSA, you cannot go near a court - at least that's what I was told by the CSA when I pointed out that our previous arrangement took school fees into account. A decade later...
Sorry I should of said that she has appealed the CSA's decision to vary his payments and there is a court that decides whether they were correct. So in theory there are 3 sides in courtThe judge asks for all financial info although he cannot insist that the other party provides it so its a bit of a joke.
Also didn't mention the son only knows the existence of the company that he has been given. Never done a days work for them or what being a director means. He finally confessed to his mum about what was going on because she found out about the directorship through company records.
They can talk to HMRC but that won't help. It sounds like he's set up his affairs so he's living on handouts from his family.
The change of ownership of the business or the paying of large dividends or salaries to family members who have done nothing for them might be the better angle to pursue. I vaguely recall HMRC clamping down on this activity as a tax dodge and you piss them off at your peril.
The change of ownership of the business or the paying of large dividends or salaries to family members who have done nothing for them might be the better angle to pursue. I vaguely recall HMRC clamping down on this activity as a tax dodge and you piss them off at your peril.
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