The system clearly doesn't work. It needs to be changed so there is an emphasis on the NRP taking more responsibility for their payments.
- the NRP should have to register to pay child maintenance (same as when an individual becomes self employed The individual is responsible for registering for tax it's not HMRCs job to coerce them to pay it). It should be the NRPs responsibility to ensure every penny of maintenance is paid each year. Failure to register leads to a fine plus arrears.
- failure to pay maintenance at the correct rate (this can be investigated retrospectively) leads to fines, back pay, removal of driving licence and prison as ultimately this is neglect. Neglect is a crime.
- debt can be chased indefinitely - including seizure of assets.
At the moment it is common knowledge that Cms are rubbish, NRP will use this to not pay.
Why don't you use a) paye requires income to be logged monthly - use this data. Use self assessment data.
B)banks and building societies log the income given by a mortgage/loan/credit applicant on a database. This database is used by financial institutions to stop fraudulent applications - use the data! Surely if an NRP tells the bank they earn £50k and tells Cms it's 10k they are committing fraud - this should lead to a fine (see above).
Put failure to pay CMS and the outstanding debt onto an individual's credit history. Also show total amount outstanding. Credit files list all accounts held - check experian and equifax and get all bank accounts sent in if you have doubts.
C) as a country a cultural shift is required it should not be acceptable to avoid providing for your children. Just like the government wanted to shift thinking on seatbelt wearing, drink driving and eating 5 a day.
D) abusive parents know 50/50 residency means no money to be paid - this needs investigating. Parents no doubt avoid chasing maintenance so the NRP doesn't drag them through court where the judge could give 50% residency to an abusive person.
e) investigate individuals obviously living beyond their means - reducing their income to avoid paying. I believe in the U.S. They base it on what they would earn employed. So NRP says s/he earns £10k per annum self employed but an employed person doing that job earns £50k and s/he used to earn £50k but for the 3 years (not a start up business) since splitting has submitted tax returns showing £10k. Charge on the 50k.
The system is obviously a mess. The government collate so much financial data but don't appear to use much of it - it makes little sense.
It's also very odd that the resident parent is charged a % when the NRP doesn't pay! This obviously will lead to a lower 'private arrangement offer being made. Ie 'if you went through CMS you would only get 14% so I will only give you 14%'.
Finally the NRP income should be reassessed every year without fail - again responsibility needs to be with the individual to offer this income - or be fined.
Unfortunately fines, removal of assets, imprisonment and loss of driving licence will be required. Also the debt should never be written off - continue taking debt, for life, until repaid (even if individual was jailed).
Very sad state of affairs that an advanced western country cannot find a way of getting NRPs to pay for their own children.