DAD.info
Forum - Ask questions. Get answers.
Welcome to the DAD.Info forum: Important Information – open to read:

Our forum aims to provide support and guidance where it can, however we may not always have the answer. The forum is not moderated 24 hours a day, so If you – or someone you know – are being harmed or in immediate danger of being harmed, call the police on 999.

Alternatively, if you are in crisis, please call Samaritans on 116 123.

If you are worried about you or someone you know is at risk of harm, please click here: How we can help

HMCTS Tribunal - Li...
 
Notifications
Clear all

HMCTS Tribunal - Limited Company

 
(@ukdadof3)
New Member Registered

Can anyone shed any light on this process as there is next to nothing online. I would like to use the information to firstly help myself but also provide a resource thats easily found on Google. (Search engine optimisation is my skillset)

The resident parent did not like the cms decision on the mandatory reconsideration and requested a hmcts tribunal after cms told them the figures were correct as of hmrc records.

i heard its down the parent who requested tribunal to provide evidence is that true?

What exactly can they provide other than publicly available companies house records of filed accounts and persons with significant control?

Would providing that mean they get granted a tribunal?

If the tribunal goes ahead what exactly am i to provide?

What is the ideal way to structure a limited company and paying yourself from one to be successful in defending a tribunal?

If it does not go in my favour and they say the wage i recieve is not to be used for the decision and the company funds should be instead then on what formula is that calculated given that companies have expenses, r&d, staff, assets, corporation tax.

My situation is a limited company earns around 30k per year and i take a small wage £570 per month and earn tax credits as a result. The other funds are to fuel, equipment, invoices for small tasks by a handful of people and to another director and corporation tax - no dividends

What is likely to be the outcome of this?

 

 

 

Quote
Topic starter Posted : 07/05/2022 7:25 pm
(@dadmod2)
Illustrious Member

hi,

I don't have lot of experience in this area, but it's my understanding that if there is any assets/money going to another director of the company, then that belongs to them and CMS can not consider those amounts to be your income, for purpose of child maintenance. Other parent can usually get a tribunal by filling in the relevant form.

I would recommend you join this CMS support group for paying parents. lot of experienced members there:

https://www.facebook.com/groups/239699060076601

ReplyQuote
Posted : 07/05/2022 7:42 pm
(@world-traveller)
Eminent Member Registered

@UKdadOF3

 

My ex has twice gone to the HMCTS to complain that I was not declaring the correct income.  The first appeal failed as she had no evidence to support her claim.  So, yes it is up to the resident parent to provide evidence.  CMS will not act as detective or researcher on their behalf

The second appeal was regards the CMS assessment in 2020.  Tribune ruled that CMS were wrong (see the thread regards First Tier Tribunal).  However, I have asked then to give reasons as I think they made a mistake.

The tribune will take place regardless of the quality and accuracy of the information provided by the resident parent.

The Non Resident Parent may receive a directionS notice from the Tribune that details what documents they wish to see.  In my case I had to provide;

Recent pay slips and the last two years of the Limited Company profit and loss accounts.  My accountants were a good help.

Initially the CMS had looked at the companies house abbreviated accounts to see if there was an significant capital in the company that I had not paid myself in dividends (ie Diversion of Income which is an allowable Variation), but concluded there was not. 

You say your limited company earns 30K per year?  Is this turnover/sales/revenue or profit after tax?

If it is profit after tax, the tribune may rule that you can pay yourself more than 570 per month.  How they will draw the line between what you can pay yourself and what is reasonable to leave in the company for a rainy day I don't know.

 

ReplyQuote
Posted : 16/05/2022 12:38 pm
Share:

Pin It on Pinterest