Limited Company Child Maintenance Avoidance HELP SOS!

[CathB2010]

Hi,

Does anyone have any advice on what to do when an absent parent creates a limited company to avoid paying CM?

I work fulltime but I am struggling with his contribution of £10 per week based on a declared GROSS income of £181 per week but he is hiding behind his Director position in the company that he solely owns! I pay everything inc mortgage, bills etc and we have had no contact with him (his choice) for 7 years.

Thanks in advance.

Cath

[Kathymumofone]

It sounds like your ex is going to pay himself in dividends which won’t have a paperwork trail until after the end of his financial year.

The CMS won’t see his income for a while. All you can do is tell them, and ask for a review after he  submits his company accounts which you should be able to find at companies house.

 

[Bina]

I have the same problem.  My ex is using Director’s loans to fund his living costs and even use as a deposit for a property.  He is a contractor so all the fees he charges are pais to his company amnd these reservers are offset to be paid into his director’s loan account.  He no longer pays himself dividends and legally declares his director’s fee (159/month as his only income).  Therefore   he only pays £10 per week child maintenance.  £3000 arrears are being paid to me at £50 per month. A ridiculous loophole that needs to be challenged and changed.  We all need to fight this together.  There was a petition to change the law in child maintenance in Feb 2019 but there were not enough signatures to carry it through.  We need to refine and define a petition and gather at least 10000 signatures.

 

[Author]

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