[Solved] Child maintenance whilst self employed HELP

Hi there

Whilst I don’t know a great deal about the financial side of things, if you would like to pay the PWC more, couldn’t you just make a regular discretionary payment directly to her? (preferably by bank transfer so that you can reference it as CM).

Hi there

Whilst I don’t know a great deal about the financial side of things, if you would like to pay the PWC more, couldn’t you just make a regular discretionary payment directly to her? (preferably by bank transfer so that you can reference it as CM).

Thanks for your reply.

I've absolutely no contact with her directly, nor have I spoken to her in over 10 years. It wasn't a serious relationship and we were both young at the time. I've contacted CMS to contact her about the option of arranging an FBA but she wasn't keen. So I'm not going to start paying additional money if she is not willing to have a private arrangement.

I can understand that, it’s such a pity that she won’t agree to a private arrangement... she may think you will want to get more involved with your child, which in my opinion, is a good thing!

You might like to think about opening an account and put extra monies into that for your child’s future.

Do you have a relationship with your child? Is that something you would like to pursue? If you’d rather not answer, that’s fine.

All the best

Hello,

I am similar, although I am guessing the issue here is that your ex is not chasing you like mine is me. I can see how this happens, although in theory CMS should catch up with you when HMRC show figures for total earnings.

My situation is that CMS initially calculated based on £11.5K basic salary, ignoring my dividend declaration in the letter. However, then my ex requested a variation, and 5 months!! later they upped it from 85 per month to 358.

However this was still lower than it should be, because it seems they do not take Corp tax into account. My ex bitterly complained, I offered to pay her the 572 it should be by going voluntary however she refused to accept(she will not communicate with me), as I am told she does not trust me and I am hiding earnings.

So instead of taking the 572 and offered back pay, she kept silent and went to CMS for a mandatory reconsideration. CMS used the truthful figures I had sent which match HMRC and kept the award at 358. I offered 572 again voluntarily, no response. Then I am contacted to say she has appealed against CMS award and now I am waiting for a court date to be given a grilling and attempt to see where I may have covered or diverted income.

So I am guessing, the only reason they are not recognising and altering in your case is because it is you that is driving it, not your ex. If she was to ask for a mandatory reconsideration and appeal, she would be able to get it reassessed for more, or even if she just asks for a variation and ask them to look at the dividends showing with HMRC.

I too have had bizarre head scratching moments with them. Trying to be honest with them in writing, but if the HMRC figures do not tally with your honesty, it seems they are obliged to go with the official HMRC figures.

No doubt you will be wary that if you were to voluntarily pay her more and CMS does then catch up or she appeals, they will not take into account your voluntary extra, you will have to pay it all again officially.

It is a mess!

HR - I would really stop offering to pay extra if the CMS award is upheld, instead put the extra money into a savings or investment account when your children are older - it will be probably far better spent than if it goes to your ex.

No relationship at all, never even met the child. It was no more than a fling and then was contacted a year later telling me about it and got notified she was going to CSA for money.

Is that how you want it Mike? Please tell me to [censored] out if you don’t want to answer... I’m just interested in your perspective and whether you are on board with this arrangement, or just resigned to it.

Hello,

I am similar, although I am guessing the issue here is that your ex is not chasing you like mine is me. I can see how this happens, although in theory CMS should catch up with you when HMRC show figures for total earnings.

My situation is that CMS initially calculated based on £11.5K basic salary, ignoring my dividend declaration in the letter. However, then my ex requested a variation, and 5 months!! later they upped it from 85 per month to 358.

However this was still lower than it should be, because it seems they do not take Corp tax into account. My ex bitterly complained, I offered to pay her the 572 it should be by going voluntary however she refused to accept(she will not communicate with me), as I am told she does not trust me and I am hiding earnings.

So instead of taking the 572 and offered back pay, she kept silent and went to CMS for a mandatory reconsideration. CMS used the truthful figures I had sent which match HMRC and kept the award at 358. I offered 572 again voluntarily, no response. Then I am contacted to say she has appealed against CMS award and now I am waiting for a court date to be given a grilling and attempt to see where I may have covered or diverted income.

So I am guessing, the only reason they are not recognising and altering in your case is because it is you that is driving it, not your ex. If she was to ask for a mandatory reconsideration and appeal, she would be able to get it reassessed for more, or even if she just asks for a variation and ask them to look at the dividends showing with HMRC.

I too have had bizarre head scratching moments with them. Trying to be honest with them in writing, but if the HMRC figures do not tally with your honesty, it seems they are obliged to go with the official HMRC figures.

No doubt you will be wary that if you were to voluntarily pay her more and CMS does then catch up or she appeals, they will not take into account your voluntary extra, you will have to pay it all again officially.

It is a mess!

Sorry to hear about your troubles, sounds like she is going for the throat and trying to take you for every penny. I think PWC who do this give themselves a bad name especially if the father is actively involved in the child's life and is willing to pay for them honestly.

So HMRC just ignore dividends and provide only salary? Why do they do this? When you say CMS catch up with you when HMRC give total figures? I've already disclosed what I've drawn from my company in the form of a self assessment form.

In the 10 years I've been paying maintainence it's never been queried or looked into as she has no information on me as we have zero contact. If she was to open an investigation it would be because she is suspicious (again no reason for her to be as no contact) and would have to prove why and give reasons to CMS before they entertain it.

So back to my initial question, I could basically clear out my company with dividends and they still wouldn't even consider them in the calculation, which is extremely strange!

Is that how you want it Mike? Please tell me to [censored] out if you don’t want to answer... I’m just interested in your perspective and whether you are on board with this arrangement, or just resigned to it.

If truth be told, no. The reason being I've since married and starting our own family. The relationship was not serious and didn't last. Ten years have passed and not seen the child. I feel like it's more a prison sentence than anything else. I know that's not nice to say but I feel used and and am supporting a child I will never meet. She's has since had another child and another two failed relationships since me. Yuck.

I think that is part the case.

If she does not ask for a variation based on undeclared income then they will take your salary figure only and it will remain low.

I believe if she asked for a variation then they would contact HMRC and see your latest figures which would include dividends and apply this to the calculation.

So it is her silence and assumed acceptance of the current amount that means no one is looking further.

Personally I would now keep quiet if you are not being pushed.

With regard to me, the only reason I was volunteering more is that i knew from past employment that this was the correct level, but also I have had enough of the constant phone calls and letters from CMS as my ex has tried to make trouble over the years. Including telling them I am not having my child when I certainly am. I have had around 15 different amounts to pay over 3 years based on her continued meddling. If she accepted voluntarfy then there is no one to complain to!

Is that how you want it Mike? Please tell me to [censored] out if you don’t want to answer... I’m just interested in your perspective and whether you are on board with this arrangement, or just resigned to it.

If truth be told, no. The reason being I've since married and starting our own family. The relationship was not serious and didn't last. Ten years have passed and not seen the child. I feel like it's more a prison sentence than anything else. I know that's not nice to say but I feel used and and am supporting a child I will never meet. She's has since had another child and another two failed relationships since me. Yuck.

I understand... it must be tough though, knowing there's a little human out there that you are connected to, who's life you aren't a part of.

There are the means to change the status quo, you could make an application through the courts, although it would be a slow process, and if there are no safeguarding concerns, the end result is likely to be contact.

Of course I can understand this might not be something you would wish to persue, it can get complicated and can cause a great deal of stress, but if you wanted more information, please don't hesitate to ask.

All the best