CSA - setting up new wife as director of Ltd company -

[CrystalEclipse]

Ex, the absolute master of CSA avoidance, appears to have set up a ltd company with is new wife as Director. As I'm pretty sure he'll have a good reason for doing this, anyone have a clue why?

He's possibly self employed contracting (Cash in hand thankfully not possible in his profession) and it did look like the CSA (it's gone criminal) might be catching up with him....

Anyone with any experience of this?

Can he pay himself a tiny wage and her a large one? The he is liable for a smaller CSA payment, but together they still have the same about of money?

Can the CSA do anything about that?

YY to the above.

She has to be doing an amount of work for any payment, though. If HMRC audit and the pay is wildly disproportionate, there may be repercussions.

You used to be able to get away with paying someone who didn't do any actual work to avoid tax but you can't any more. The tax man will be very interested.

Not sure if CSA can as it's not their remit to judge if salaries are being paid "properly" (I think).

HMRC could, but not if she is genuinely working (she would get some fee as a director anyway)

Can her income not be taken into account for maintenance?

Tell the CSA that's what he's doing and see what they say.

I don't think it can, Fastidia. It isn't for any other work the new partner is doing.

Sounds like he is earning so much he has to declare tax. If her name is on the paperwork he is poss hoping he can say she takes a cut as his 'boss' and it comes in under a threshold? Not sure but sounds v. dodgy.
I wonder if your ex and my ex are reading the same book

Off topic but it beggars belief that there are other women going along with this kind of thing to deny their partner's kids money. I would give my DD a hearty talking to if she behaved like that.

My ex did this. His wife was paid the bulk for the contracts they had and his lowly wage meant he only had to pay £7 a week.

Most assets were in her name too.

CSA said there was nothing I could do unless I was able to prove he was living beyond his claimed wages. It was completely up to me to prove it and present them with the evidence.

It was suggested that I contact the taxman. I didn't though. I went with dignified disgust at his lack of moral conscience and after a year he seemed to realise he was being a dick and suddenly started earning an OK wage again.

I didn't care about what he paid though. For me it was just that he did.

But I appreciate it matters a lot to some people.

hmmm....

My head hurts, I don't know what to think. so here's what I have found - any idea of what to do where to look next?

CSA are trying to track down ex for maintenance avoidance.

Ex cannot be company director I don't think (due to criminal record).

New wife becomes director of company (companies house) whilst still fiance. Exs dad is other company director.

New wife is listed as company accountant

There now appears to be a business telephone number of a company unrelated to ex's historical employment- not listed as a company at companies house.

I need to get full details from companies house don't I?

Don't think somehow ex is likely to develop a conscience.

No probably not. I think it coincided with him finally deciding to meet his DC for the first time.

I guess I was lucky. It's not a huge amount and I am certain he isn't being truthful but I didn't have the energy to fight that too.

it's quite a lot of money for us, I would estimate at least £300 a month

queen it annoys me that anyone helps these men avoid paying for their kids. My ex's boss seems to be the latest. He has kids of his own FFS!

I hate that they can get away with this.

And that the CSA seem to put it to you to prove it for them.

Get all the details you can because they probably won't. It does look like he's going to start getting a very low wage from her suddenly.

Good luck.

Thanks we're 4 years down the line, last time I spoke to the CSA they appeared to be closing in.... but i guess they wouldn't have known where to look for this latest development. In fact I'm slightly amazed I did......

Just like to work out what this means to me.....

Just a thought would it be illegal to declare you were employed by a company, or not correctly declare the company you are employed by?

Oh dear. We only got 2 months payment and 8 months back payment (ex hung up on CSA and they had to get a DEO) before exp has suddenly 'lost' his job this month. The thought of another 4 years of these games is almost too much to think about :(

Crystal is your ex the 100% shareholder but his wife and his dad the directors?

Is the new wife actually an accountant, do you know?

Has he been paying £300 per month previously but now it has stopped/reduced? If not it might be legitimate as he cannot be a director himself.

I think it would be illegal Crystal - the CSA would not view it kindly if found out and HMRC would probably wonder about it too. It may be worth looking into what powers the CSA have but think they can imprison someone, so pretty high. Most troublesome would be IR though as we all know tax evasion is a big issue atm if they think he is doing something odd.

There may also be dividend vs salary implications. Sorry I dont know if CSA calculations take into account dividends as income. As the company doesnt have to file account until 9 months (?) after year end it will take a number of years to really find out what they are up to.