departure

[nookiebearisevil]

Hiexh pays zero in csa as he is a director of his company and claims he earns no money but awards himself dividends I believe.The csa have asked me to apply for a departure as he goes away on holidays and weekends, pays for sky expensive car and so on. Has wnyone ever applied for a departure and what is the best way to word it?

I haven't done so but I would simply lay out the facts. You are applying for a departure as his lifestyle suggests he has earnings in excess of his declared income. Set out everything you know about his holidays, car, etc. Provide evidence if you can. If you have evidence that he is using his position as a director to hide income you should provide that too.

Dividends count as income (unearned income but income nonetheless). It will be clear from the company accounts what dividends he has received.

It is very common for owners of businesses to pay themselves mainly via dividends as this is more tax efficient. Really surprised CSA can't cope with this situation

They certainly quizzed DH about this in huge detail - he was not diverting income, there just wasn't any. I'm sure they can cope, if they can be bothered.

Has your ex provided copies of full accounts? They will show dividends paid and the directors report should show your ex's shareholding.

Car and holidays may be business expenses ( yes I know it's a laugh! ) and so not income.

Friend of mine runs company that apparently makes no money- he claims housing benefit on luxury flat and apparently has no income. Been abroad at least 10 times in past 2 years-each business trips apparently (how on earth is markmwarner business?) He pays no maintenance at the moment. No-one seems to question how he eats, clothes himself etc . Before they split the business made 50k a year- he had mortgage etc. Now the company has more expenses than income.. Hmm...

Cars are taxable benefits.

No way can holidays ever be an allowable business expense.

Simba, I can't believe your friend hasn't been the subject of a Revenue enquiry yet. I would guess it would only take a tip off from a disgruntled ex and he could find himself facing criminal charges for tax evasion.

Car is owned by the company apparently and also apparently never used privately ( but saw him last week shopping in m&s in it). He often goes away with best friend and fellow director on business trips all over Europe- 2 weeks at a time to some great hotels!

I don't think he has been investigated- what surprises me is that housing benefit don't ask how someone can live on no money even if they don't know about holidays etc etc

Simba - take photos of him using the car and pass on to HMRC.

To be honest, if they actually do an investigation of this they will never buy that the car is not used privately. They would need to keep detailed logs of business miles done and match it exactly to the mileage on the car. I bet you they could not do this.

He may not have been investigated YET but with a tip off he could well be. Then he will be up shit creek without a paddle, HMRC are not stupid.