Not really legal - CMS

[WingingItStill]

Has anyone had experience of or know anything about getting the CMS to calculate maintenance based on a Ltd company Director’s (I.e. own company / one man band) dividends income rather than their “wages” that they take from their company?

Wait until they do the assessment and then apply for a variation.

Thanks Collaborate

They will and do, but you may potentially have to bring it up assuming the other person will 'forget' to mention it...
Given that the CMS are known for being slow to react, I'd tell them as soon as possible.

Great thanks, that’s reassuring.

you may potentially have to bring it up assuming the other person will 'forget' to mention it.

They aren't asked about it, and even if they do mention it it won't be taken in to account in the first calculation.

OK thanks

If it's a new company expect them not to look at it for a year until he has to do his tax return for year end in January 2020. At least that's what they've told me. It's a farce. My MP has asked them to look at his bank accounts! Awaiting response.

Thanks, not a new company thank God - sorry to hear you’ve had such a nightmare.

Thanks. That's good news! It makes me rage how easy it is to get away with it. Also raised that with my MP. CMS don't ask about so-called unearned income (bonuses and dividends) unless the receiving parent raises it and asks for a variation.

I have just requested this due to him claiming he earns less than 7 quid a week but runs a company he is director of. Let's see what happens

CMS don't ask about so-called unearned income (bonuses and dividends) unless the receiving parent raises it and asks for a variation

True. Even though details of the unearned income are on the same Tax Return that CMS used to make their first calculation!!!!

It's disgusting!

Law needs changing as in today’s world many people operate through Ltd Company as more convenient for employers. When using a Ltd Company the most tax efficient way to take money from the Company is by low salary and high dividends.

Likewise many people are into buy to let and so will have rental income. This too is classed as unearned income.

The 25% change in earnings before CMS make another assessment is also too high.

Removal of the Asset Variation was a mistake too. Possible for someone to be income poor, but asset rich.

I absolutely agree about the 25% threshold. The legislation is not fit for purpose and the CMS seems to lack the resources, the authority and sometimes the will to do anything about the non-payers. Even idiots can easily find out how to play the system.

CMS have made 3 different assessments in less than a year in my case. Annual review is January 2019. At present CMS is based on what I earned in 2016!