LTD company and CMS payments?!

[Emmyloubull]

Hi all I'm fairly new to this so I hope you'll be able to help?

I have 3 wonderful children from a previous relationship. My ex is shall we say is untrustworthy to say the least. He has no contact with our children (his choice and not from my persistence for him to have contact to no avail). My ex has over the past 8 years done almost anything to not pay any maintenance and still has arrears which are now with CMS. He has changed phone numbers, addresses, employers even went back to college, he has had numerious Facebook profiles etc.

My ex is currently employed and has for the last 18months complied with CMS and pays his maintenance almost on time. He did say to me about 4 months ago that he was thinking of getting a second job but was reluctant to do so as CMS would take those earnings into account also, I have however just found out that he has set up a limited company with his new wife, he is still employed elsewhere but I am aware he is probably building the company up working part time, he hasn't declared this income to CMS.

On the Companies House website he has given his address as a service address rather than his own or his accountants I can only assume to attempt to avoid anyone knowing about his new role?

How does being an employee/director or a limited company work with CMS?

If he receives a salary from the ltd co that will be taken into account.

If he receives dividends from the company this will also be taken into account. But you may have to fight with cms as they are pretty dam useless.

A ltd. company is a being of its own - so you need to split out several roles:

• ownership (shares)
• control (directors / shareholders / others)
• employment
• etc.

if he sets up a company, but takes no salary / dividends from it the money can stay in the company for the next 20 years and it won't affect his income at all... his asset value (what he owns ie shares) will go up in value, but the money will not be his, but the company's so arguably yes he can hide wealth in a ltd company and if he doesn't take it out it will not reflect in income levels - the owner of a company can own a company worth £100 million (with £100 million in the bank) but have an income of 0 a year... - until they take it out of the company it is not theirs - it is the company's - their ownership gives them the right to take out the money (e.g. through a dividend), but until they exercise that choice it is not theirs.