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CSA Question...self employed EXP....are we being shortchanged?

8 replies

Runnerlegs · 22/07/2012 14:31

So, EXP is self employed. He changed the status of his business from sole trader to ltd co a couple of years ago, he owns 99% of the business. His last published accounts 2011 show profits after tax of over £30k. He also pays himself a salary of £800 per month and the company profits go into a savings account which all belong to him.

The CSA, in their wisdom, only look at what he pays himself as salary (£800) and so have calculated that he only has to pay me less than £40 per week!!!! No accounting for the profits of his company at all.
As such, he has 2 top of the range sports cars, works car, house fully paid for and cash in the bank. He has limited access as a supervision order is in place and so does not have shared residency etc.
Should I go back to the CSA and hope that they will look at this again and take business profits into account? Last time they admitted that they didnt really look at anything other than salary. He pays himself a low salary for this very reason.
Any experience? Hope? Anything?

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Pedigree · 22/07/2012 16:47

I am in the understanding that when it comes to self employed or company owners non resident parents, we are pretty much stuffed. My exives the life of Riley, and earns a tiny salary, all the other stuff are company perks that do not enter in the CSA calculation. Unfortunately there is not much that you can do while he is paying himself a small salary.

caramelwaffle · 22/07/2012 16:49

Didn't want to see you go unanswered.

I believe that the rules should be changed and they should look at the profits made by a company when looking at child maintenance issues; perhaps a percentage of wages plus, say 20% of company profits especially where there is a sole beneficiary of those profits i.e. a NRP.

Hope?

Not without a Huge Government change. No.

caramelwaffle · 22/07/2012 16:49

x-post

LittleSugaPlum · 01/08/2012 22:05

CSA doesnt take money from a business for maintence. Maintence is calculated on what he pays himself. CSA are crap - always have been

Cataleya · 15/08/2012 15:20

Hi sugar plum, how do you know this? My friend has asked for a variation to find out what her ex earns? Do you know what that entails?

MissKeithLemon · 15/08/2012 15:45

I agre with Cataleya - you can ask the CSA to do a 'variation' investigation which is basically saying that the non resident parents income does not seem consistent with lifestyle. The CSA then take a closer look at things... supposedly.

violathing · 15/08/2012 15:52

he is not Self-emploted he is an employee/director of the ltd company he has set up. Check to see if he is paying himself dividends onthly salary. Dividends are usually counted as income

LittleSugaPlum · 15/08/2012 16:38

Cataleya My DH is self employed with Two children from a previous relationship, thats how i know that CSA wont take maintence from a business. Does your exp have a new partner/wife living with him?

If the CSA question your ex about how hes affording his lifestyle on a small wage, he could say that his new partner/wife pays for everything, and if all utility bills are in her name then he might get away with that.

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