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Child Maintenance S...
 
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[Solved] Child Maintenance Self Employed

 
(@stonefish)
Active Member Registered

Hi,

I have recently taken voluntary redundancy and set myself up in my own consultancy business. This is a limited company, where I am the sole owner, director and employee, not a sole trader. Trying to reach agreement with my ex for new level of child maintenance for my daughter. She believes she is entitled to a share of company profits, as well as a share of my personal salary from the business (and a share of any interest or gain on personal investments). The Child Maintenance Service seem to give varying answers every time I call, but I have been told that I only need pay her from my salary and from any dividends that I take from the company (likely not to be very large initially). Can anyone confirm what is the correct position?

Thanks,

S

Quote
Topic starter Posted : 25/09/2014 10:39 pm
(@dadmod4)
Illustrious Member

As far as I know, you are quite correct that it's from salary and dividends. The can claim if you have assets in excess of £65k, so your shareholding in the company might well come under this once the company has increased in value, and it might be this she is thinking of.

ReplyQuote
Posted : 27/09/2014 7:09 pm
(@Child Maintenance Consultant)
Noble Member Registered

Hello Stonefish

The Child Maintenance Service uses the amount of gross income given to HMRC by a paying parent, their employer or their accountant to work out the average amount of earnings, or, where the paying parent is self-employed, their taxable profits. For every case, the gross income figure will be reviewed each year in order to take account of newer income information given to HMRC.

If during the year earnings from employment change temporarily from week to week due to overtime or bonuses, this usually wouldn't make a difference to the amount a paying parent must pay in the 2012 scheme. But if there is a more permanent change to current income and this differs by 25% or more from the income figure previously used then the paying parent can apply to have a temporary new calculation put in place. They will need to provide evidence for this but, if successful, the new calculation will usually apply at least up until the next Annual Review. For full information on how maintenance is calculated you can speak to the Child Maintenance Service directly.

Alternatively, you can find information about how the Child Maintenance Service calculate child maintenance on Gov.uk at https://www.gov.uk/how-child-maintenance-is-worked-out/how-the-child-maintenance-service-works-out-child-maintenance.

For more information on the different ways to set up child maintenance, you can visit the Child Maintenance Options website at http://www.cmoptions.org.

The DWP have a sorting out separation web-app that you may find useful. It offers help and support to separating and separated families. The link is: www.dad.info/divorce-and-separation/sorting-out-separation.

Regards

William

ReplyQuote
Posted : 29/09/2014 7:41 pm
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