Include dividends in CMS calculations.

[CMSdividend]

Hi, have n/c as ex knows old username and posting in AIBU for traffic.

I'm trying to get some evidence together of parents that have evaded supporting their children financially through setting up as limited companies, paying themselves minimum wage and claiming the rest of his income dividends. His company (of which he is the only employee) made a £50k+ profit last year.
My ex has just done this, was earning £50k+, I was receiving approx £650 per month. Now it's gone down to £34 a week. I'm going to have to sell the house, of which he'll also receive 30% of the £250k equity. I am not eligible for a mortgage.
I know I can appeal and will, but my appeal is likely to be unsuccessful. I have searched the .gov website for petitions and can't find one.
So, before I launch into campaign mode I'd like to know how many others on here this affects and whether you would help support a campaign if I was to start one?

I run a small ltd company and dividends absolutely have to be declared as taxable income, even for micro accounts.

It won’t way who to, but dividends can only be paid to shareholders/directors, and they must be paid equally. You cannot pay one director dividends and not another.

They are used for cms calculations. If he is being paid dividends then they are part of his income. If he is hiding it somehow then thats a matter for hmrc.

The only thing that can be done as pp said is to leave the money in the company. But then he’ll actually have to live on the £650 a month or whatever as he can’t withdraw it.

A campaign won’t achieve anything because of the many methods that can be adopted to play the system here - you couldn’t legislate for all the variations. It isn’t just about the timing delays that will effectively push all the income back up to 2 years, but you could avoid CMS via (1) putting many of your living expenses into the company (eg company buys and mortgages your house and you pay a pittance in ‘rent’ to it - so long as you keep numbers ‘reasonable’ you can get away with it for a long time, (2) your company can be owned by another company based offshore which you own - theoretically you can’t avoid tax unless you go offshore yourself, but it takes an awful lot of unpicking, (3) you can give all the shares in your company to someone else (eg new girlfriend), (4) you can liquidate your companies repeatedly. There are no end of options. Friend of mine has an ex who owns more than 20 ‘branches’ of an organisation but he stays in another country for 183 days a year in order to be non resident (still gives him plenty of time to live in his motor multi-million pound house in the U.K.). He doesn’t pay a penny in CMS and that’s both 100% legitimate and impossible to legislate for. HMRC spend billions trying to track down their own dues as a result of people playing the system and they still don’t have any foolproof solutions to ‘see through’ to the lifestyle and be able to tax based on that, so expecting CMS to succeed where HMRC struggle would be optimistic. It really sucks.

..

I would also like to help make more awareness with this horrific economic financial abuse it’s a premeditated crime in my eyes. Iv been suffering for over 8 years. Something needs to change only this happens when we all come together to try to help change the system. If not, then for our own children so they never have to deal with this abuse.
I’m happy that the Uk law are now new to recognizing this as a crime. The past two years I haven’t stopped with CMS and I won’t stop still something changes for the paying parent to take responsibility.
Iv now been forced to live over crowed with 3 children in a small two bed flat while their father rarely sees them and he lives in a large 4 bed house apparently earning less that £9000 a year. This would only cover 3/4 mths rent. It’s insane this is happening to so many people.
So many children are suffering going without. Children matter this is the next generation.
I’m happy to help in any way I can to make more awareness. This needs to stop!

Does anyone know if limited company profit(1 out of 3 shareholders)is included in CMS calculation even though is has NOT taken out of the company as a dividend or otherwise i.e the profit has been kept in the limited company as a reserve.