You know when you just think that you ve had enough?? I’m there. I ve always paid the correct amount for my kids, never missed a payment. I recently went self employed. I pay an accountant to keep my books and do my wages. I live on a minimum wage. I don t take dividends. My expenses and wage pays my rent, bills and general living costs. I have no csa arrears. I have savings that I have accrued since my divorce which are nothing to do with the business. The courts have taken these into account as assets and decided that I am earning far more than my books say. I’m now liable for £3200 a month. I have been so honest. Supplied everything. I like in rented accommodation. This will make a huge dent in the savings that have nothing g to do with her and have not come from any part of the business. Any help will be gratefully received. I don t know what else to do.
You say the courts have decided you earn more? Is your case with CSA/CMS - and if so, why are the courts involved at all?
It’s been passed from CMS to a tribunal. I have appealed it already and it’s gone back to court and now this. They have taken the money that belongs to the business as money that belongs to me...is this normal? I thought that they d be interested in my wage. It feels really unjust. When my contract ends, what will I have to survive on and restock for the next contract? Is this normal? I feel financially bullied.
It’s been passed from CMS to a tribunal. I have appealed it already and it’s gone back to court and now this. I have always paid what they ve asked. I’m shocked. They have taken the money that belongs to the business as money that belongs to me...is this normal? I thought that they d be interested in my wage. It feels really unjust. When my contract ends, what will I have to survive on and restock for the next contract? Is this normal? I feel financially bullied.
I would ask you accountant to take a look at the decision, I'm sure he/she would have had dealings with csa cases in the past.
I guess what has happened is that your ex has appealed on grounds of diverted income, where you have kept the money in the company rather than to pay it to yourself and expose yourself to higher CM payments(that will be their thoughts).
So if you for instance received 100K income and paid yourself 50K they consider there was another 50K that you could have paid yourself and they have made a subjective award based on that.
I was appealed on the same grounds. Only thing to mitigate is to put more into pension (but that should only be about 15% of gross I believe) and to pay yourself more, leaving less in the company so they do not consider it excessive. You are allowed some surplus cash I believe.
But guessing this is all too late now and looks like the decision is made. Perhaps consider what you do ready for next years review, so you are not so exposed. Sorry not much help, only confirming what you already know.
when i first signed up with CMS. they wrote to me and ex that they checked tax record last year and my income was Zero, so I have nothing to pay LOL. Rang them up and sorted it. all i had was 0 salary and £22k for dividend. so maintenance was worked out on dividend figure. this time round i will have both a salary figure, and dividends for whatever amount I withdraw from company. just have to make sure CMS take both figures into account so someone doesnt give me trouble.
So recap did you leave the dividends within the company or take and put into your account?
i'm done with contract work and limited company. told accountant to close down company. will likely do regular self-employed work and just do self assessments every year.
Thank You
The reason I asked was that I leave within and donot touch but also have pension so good advise, regarding before end of year.