Child maintenance and the FIU

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  • #36887 Report

    Penny1981
    Participant

    Hi there , I’m new to all this and just looking to see if any one has been or is in the same situation as me

    3 years ago I contacted cms to help me with my ex. He takes home £700 pw and rents out property on his mortgage free home at around £700 pm. He set up a limited company and is managing director so pays himself £161 pw and haven’t declared the rental income.
    CMS advised him to pay me £14 pw on his “income” on paper.
    I disputed this and asked for a variation which failed. It’s now in the hands of the FIU who have invited him in for interview to take place in a few weeks time.
    im worried now that he is going to get away with this as his partner is an accountant and probably knows all the loopholes. But they’ve been investigating him for 18 months now and should have some concrete evidence as I know they dismiss cases that aren’t likely to succeed.

    hes so sly and snakey he will try anything and everything to avoid paying what he should for his child. Has anyone had any success stories re the FIU ? it seems there are thousands of NRP taking this route to avoid paying for their children. Also would the FiU contact relevant dept redgardinf tax avoidance etc.

     

    #36889 Report

    Macwoo1
    Participant

    I am in the same boat. My ex has created a limited company where he has named his girlfriend as a co director with a 51/49 share split.  He pays himself a salary of £11750 ( under the tax threshold) and her the same salary, the rest in dividends. She doesn’t work within the business but he says she provides secretarial duties ( she has never been a secretary in her life) however this is a LEGAL tax efficiency. So, when the CMA investigates for an upward variation they fail because according to the HMRC he only makes £11750 a year. They can’t make the co director / girlfriend pay child support because they aren’t her children. Also, he can leave equity in the business and the minute the children turn 18 he can take it out.
    You can go on companies house to see details on his company. I wouldn’t be surprised if the accountant girlfriend is on as a co director too.
    I would be interested to see what the fraud investigation unit concludes? How did you manage to get them to investigate this? My impression was the CMA can’t do anything because the HMRC tax is correct.
    I would love to find out if anyone is lobbying for changes in the way CMA calculates maintenance in these circumstances. I know that they have changed the law so that an ex putting his/her wage ( PAYE) in a partner’s bank account can still be taken for child support, surely this is the same kind of deception?
    All the best of luck to you.

    #36896 Report

    Penny1981
    Participant

    Hi, sorry to hear you’re going through the same uphill battle as me!
    I just disputed the original figure that the CMS sent through as I know he isn’t declaring the rental income as well as his actual income and wouldn’t let it lie. As the house is registered under his name on the land registry I think they knew they had a case and investigated all of it. They told me he would need to provide receipts for any outgoings from the business account (which he uses for his 5 holidays a year and a new car every year) so I’m hoping they’ll have him this way. He’s taking money out of the business account for reasons not connected to this made up business he’s director for.
    yes I’ve found him on companies house and he’s director and his accountant is secretary ?
    mad far as I’m aware the FIU have excellent facilities to dig deep on these sort of situations. It’s worth contacting CMS and give them every little detail you can think of to get it taken further. Him agreeing to the interview (which he doesn’t have to attend) makes me think he’s got something up his sleeve ☹️

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