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Avoidance of paying REAL maintenance - one way....

(10 Posts)
ch1110 Tue 02-Oct-12 22:17:04

I am sure many of you have been through applying for a 'variation order' from the CSA and would like to ascertain how many have been successful in proving that the other partner has 'diverted' finances by becoming a Ltd company?

This is a genuine loophole and seems to both my solicitor and myself to unjust and avoid paying anything more than £5 per week BUT I intend to fight this battle for all of us.

I am involving my MP and if necessary the press in this pathetic attempt to escape from responsibilities in bringing up children.

You have not heard the end of me yet.

Feedback needed please. Thank you.

CogitoErgoSometimes Wed 03-Oct-12 07:49:05

Presumably, if your ex is trying to massage his declared income in order to dupe the CSA he's also hiding money from HMRC and therefore evading tax. Would that be a route to explore?

ch1110 Wed 03-Oct-12 22:51:03

HMRC - tell me more, how do I explore?
He spends more money keeping his horse than our kids which is pretty shameless.
Thanks for your help, so appreciated.

CogitoErgoSometimes Thu 04-Oct-12 07:22:07

The CSA award is based on disposable income and that, in turn, will be a reflection of the income he declares to HMRC for tax. If he's underdeclaring his income in order to dodge paying maintenance it could mean he's not being honest about his income for tax either. HMRC have rather more teeth than the CSA so one way to flush him out could be to report him as a possible tax-dodger and have them investigate his affairs. Of course, it could also be that he is legitimately reducing the income he declares for tax and to the CSA by taking advantage of exemptions in which case you won't get very far. But I'd have thought it's worth a shot.

CogitoErgoSometimes Thu 04-Oct-12 07:23:55

Reporting Tax Fraud

It's how they caught Al Capone, after all...

Glad2BeFree Wed 10-Jul-13 09:30:13

If your ex, the father of your children is on a tax avoidance scheme so he pays little to no maintenance in the UK, read on as to what you can do.

Firstly, although tax avoidance schemes are not illegal they have to be used in the way Parliament intended. A tax avoidance scheme is a loophole that these aggressive tax avoidance people use to pay nothing. They usually do this in a few ways, especially if they are Directors of their own company. Look them up on Company House, then firstly, reported to HMRC and AAG for tax avoidance. It's all anonymous. Parliament did not intend them to be able to use this tax loophole.

About child maintenance and how to get all of his income included in the assessment. A variation to the CSA won't change anything. You have to appeal the CSA decision so it goes to the appeals department in the CSA who have more power, and when you do you write this to them:

1. That you have failed to include as (INSERT FATHER'S NAME)income that part which he draws through a loan arrangement and probably via a remuneration trust.

It is my view that these payments either form part of the basic remuneration package and so should be taken into account within the underlying assessment or that they should be brought into account as a variation under regulation 19(4)(a)(ii).

2. That you have failed to take into account as assets in applying Regulation 18 any balance held in his remuneration trust, the value of his shares in his company and the balance on his loan account with his company.

3. That you have failed to take into account under Regulation 19(1A) the dividends received from his company.

4. That you have failed to properly apply Regulation 19(4) to the diversion to (INSERT FATHER'S NAMEE) company by his failure to draw an appropriate salary.

5. That you have failed to properly apply Regulation 20 by your acceptance without supporting evidence that (INSERT FATHER'S NAME) partner pays all their outgoings.

This letter covers all aspects of the aggressive tax avoidance scheme he's on. Also by getting him investigated by HMRC tax avoidance and AAG Aggressive Avoidance Group he may well find himself been investigated for the last 6 years of tax and have a hefty bill to pay to HMRC.

This income will all be used in his child maintenance assessment. If at this stage for some reason the CSA appeal can't do anything, they will send it to Tribunal. You will win the outcome.

I write from experience, didn't have go to Tribunal just CSA assessment and WON. I involved my mp too, this really is a good idea

Good luck and fight for your children's money for their upbringing.

GabriellaMontez Mon 02-Oct-17 17:42:24

Sorry for resurrecting the zombie thread but wondering if any of you are still around and if you had any success.

abbsisspartacus Mon 02-Oct-17 17:46:28

Start your own thread it is always better than resurrecting a zombie

Sjluffs Thu 12-Oct-17 09:58:59

I am the same boat, father of my children standard of living outweighs his income. However as he is not the sharpest tool in the box, he is completely unaware I am given regular bank statements from his bank of his personal spend, of which he is putting through as a business expence.
I have told the told the CSA till I am blue in the face. I have spoken to HMRC about tax avoidance.
Who do I speak to that will listen and take notice???

soothers Fri 13-Oct-17 22:22:45

No actual advice but I massively sympathise. One of the great mysteries of modern British life is how single mums are so often stigmatised and yet the fathers ARE ALLOWED to pay so little for their children's upkeep.

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