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Original poster

Child maintenance - Is there any way around the limited company thing

32 replies

Movingon2024 · 07/03/2024 07:22

So EXH was paying £450 / month for 2 teenage DCs. All done through CMS.

He is an abusive narcissist who was livid that I had gone through CMS.

just had reassessment this year, and because his income was £2500 a WEEK he was assessed as having to pay 900/month. I couldn’t quite believe it.

but - naturally - he asked for a mandatory reconsideration.Which has just been done. New amount = £129/month. Because he has made his business a limited company.

i know what many get less, but we’re in an expensive part of the country and am really worried about how to manage. The letter says I can appeal, but how? I cannot communicate with him, far less provide evidence of his income, assets etc.

Has anyone dealt with this? What did you do?

OP posts:
Hoglet70 · 07/03/2024 07:27

I'm not sure. The Limited company means he'll be paying himself slightly under £10k a year through PAYE and taking the rest in dividends. I would think that when he has to submit his yearly accounts you should be able to get this looked at again as you can prove then that his income is higher.

Bjorkdidit · 07/03/2024 07:46

Can you also give examples of his lifestyle which indicate that he is a high earner?

Where he lives, car he drives, hobbies etc?

If he's living in a nice house, driving a nice car, always going on holiday, eating out, expensive clothes etc etc he's clearly not on £10k pa where he'd be lucky to be covering the cost of living in a bedsit and walking everywhere wearing supermarket clothes.

Hellocatshome · 07/03/2024 07:51

As pp said above he will be paying himself a small salary (just enough for his NI credits) and taking the rest in dividends. Could you contact CMS and ask how they assess in this situation. Will they reassess once his accounts are prepared to show how much he has taken as dividends?

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Family law
mitogoshi · 07/03/2024 08:01

Could you just agree a sum directly with him? Or better still insist that he is 50/50 no maintenance and he pays 5% of all costs.

Lurkingandlearning · 07/03/2024 08:05

Limited companies are legally required to submit their accounts to Companies House annually. You can access them online. (Tried to add link but went wrong). I f you want to go on the website access it through Gov.uk so you don’t go to a look alike site that will charge.

I f it’s a new company it might be too soon to submit accounts, but this might help you in future

coodawoodashooda · 07/03/2024 08:08

I wish I knew.

crumblingschools · 07/03/2024 08:09

He will have to do a tax return, do CMS and HMRC talk to each other?

mirror245 · 07/03/2024 08:17

He will have to do a self assessment and declare any dividends he's taken. You might have to wait until the end of the next tax year though. It sucks.

Britpop123 · 07/03/2024 08:21

Movingon2024 · 07/03/2024 07:22

So EXH was paying £450 / month for 2 teenage DCs. All done through CMS.

He is an abusive narcissist who was livid that I had gone through CMS.

just had reassessment this year, and because his income was £2500 a WEEK he was assessed as having to pay 900/month. I couldn’t quite believe it.

but - naturally - he asked for a mandatory reconsideration.Which has just been done. New amount = £129/month. Because he has made his business a limited company.

i know what many get less, but we’re in an expensive part of the country and am really worried about how to manage. The letter says I can appeal, but how? I cannot communicate with him, far less provide evidence of his income, assets etc.

Has anyone dealt with this? What did you do?

Agree 450 with him and not use cms?
agree 50:50 with him?

Hellocatshome · 07/03/2024 08:53

Britpop123 · 07/03/2024 08:21

Agree 450 with him and not use cms?
agree 50:50 with him?

Show quote history

OP says in the post you quoted she can't communicate with him.

OldTinHat · 07/03/2024 09:09

This happened to me 20 odd years ago. CMS were great, actually. The initial figure my XH had to pay a month was something ridiculous like £1, they said they knew exactly what he was doing with the limited company and dividends. I'm not sure how they did it, but they did a reassessment and he ended up paying the correct amount iyswim.

It was a long time ago, but I'm sure CMS will sort it out is what I'm trying to say!

Original poster
Movingon2024 · 07/03/2024 09:59

Thanks all. No I cannot communicate with him (DV).

thr limited co was formed last year, right after he’d been told to pay £450/month by CMS.

so it seems like thr way is:

  • contact CMS and ask what they do in these situations (hassle, they’re awful to contact) and
  • see when accounts are published online and try to use that as evidence of his income.
groan.
OP posts:
DonutHead · 07/03/2024 11:21

when you apply for a reconsideration then he will have to declare dividends - my ex did this (set up a Ltd company and declared minimum wage).

When it was eventually reconsidered, he owed thousands in back payments (and was furious, but did pay it over time!)

SM33 · 07/03/2024 11:29

I also have this situation. I’ve spoken with CMS and they’ve suggested I look on companies house. My issue is my Ex constantly closes and then renames his business. CMS also told me to contact the tax man. Seems ridiculous that parents can get away with this.

Captainspaulding · 07/03/2024 11:29

I'm in the same situation here. Ex owns 2 businesses, designer clothes and has luxury cars for him and gf, visits family abroad a few times a year. (I know how much he earns from when we were togetther). Went through cms and he has to pay...£34.91 a week! That's for 2 ds..not each! I've contacted cms and they refuse to investigate him as I have no proof. So he's living a luxurious lifestyle and telling them he earns £227 a week it'd just so wrong

caringcarer · 07/03/2024 11:32

Many years ago I appealed under lifestyle not consistent with earnings. I also hired a forensic accountant to go through his spends. DC told me things like Dad has Sky TV, Dad has this and that and forensic accountants made a spreadsheet of what he would need as a minimum to service the things he had. I did win my case as the chair of the committee asked for an accountant to be on panel. This accountant latched on to the spreadsheet provided and asked Exh questions after question about the things he had. She asked direct questions eg do you have Sky TV? What is your broadband speed? Where did you go on holiday this year? Etc working her way down spreadsheet then said this lifestyle would cost a minimum of £X. Where do you get the money to pay for X? My exh had declared minimum wage. He was made to pay £550 pcm and this was about 12 years ago.

Original poster
Movingon2024 · 07/03/2024 11:33

It bloody is wrong. Mine has wealth into the millions.

I’ll try companies house. Really wish they would change this. So sorry for others in same situation.

OP posts:
Captainspaulding · 07/03/2024 11:51

Companies house was of no use to me as he has put the 2 businesses in his relatives/friends names! Shocking what some men will go to not to pay for their kids

gocompare · 07/03/2024 16:37

Mine did this.

You have to get back in touch with the CMS and ask them to apply a variation to check for dividend payments to be included.

If you don't ask they won't check.

I'd do this now then again this time next year.

SneakySnakeEx · 07/03/2024 16:44

I have similar with ex. But he put like some sort of limited view on companies house, there's a box he could tick so not all info is viewable to joe public.

Hes paying himself min wage, then his wife dividends as shes a joint director.

As for his dividend he will have to declare that in next financial year. They take that into account for the next assessment

Original poster
Movingon2024 · 07/03/2024 19:29

thanks all. So sounds like I should. Contact CMS, but will have to wait a year before his accounts are uploaded to companies house.

he really is a total cunt. His own kids.

sorry for everyone else dealing with this.

OP posts:
gocompare · 09/03/2024 12:00

Contact them now he may have took dividends last year also.

coodawoodashooda · 09/03/2024 19:58

Movingon2024 · 07/03/2024 19:29

thanks all. So sounds like I should. Contact CMS, but will have to wait a year before his accounts are uploaded to companies house.

he really is a total cunt. His own kids.

sorry for everyone else dealing with this.

Mine is the same. They should all be branded. Bastards.

taxguru · 09/03/2024 20:02

The accounts filed at companies house don't have to show a profit and loss account so will be pretty useless as they won't show his sales, expenses, profits nor dividends.

Original poster
Movingon2024 · 10/03/2024 06:57

Checked companies house & a set of accounts has been filed….but as you say taxguru they don’t show dividends.

so seems no way round it. I’ll grit my teeth & call CMS but jeez…..surely this is wrong.

OP posts:
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