Challenging CSA calculations

I can never get through to anyone at the CSA who actually deals with ''other income'' so I need to ask:

I''ve 2 young children and we qualify under the new gross csa calculations. Ex''s 2012 tax return used listed him as eligible for reduced payments as he earns between £100-£200 a week (or that is what he declares his income is).

Ex pays himself with dividends plus salary about £3k a month on his bank statements but under the guise of his Limited Company he earns £80k gross.

I have business accounts showing the annual money going into his business account of £80k and his personal statements, and I will send everything to the CSA if necessary, but what figures are they likely to use?

They will use his taxable income for assessment purposes.

If you apply for a variation on the grounds of diversion of income they will look at the evidence you can provide and may take it into account.

It isn''t automatic you have to apply.

Deal in writing. You will never get the same person on the phone twice and it is much harder for them to dispute what they have put down on paper.

As far as I am concerned, everything he invoices for is his earnings, I just need to prove it and I will be sending a bucket load of information to the CSA including a monthly invoice for £8k. I am just so angry that he thinks that just because the CSA calculated £12 a week (deferred until December!!!!!) that this is all he has to pay for his children. I hope that he is ill with guilt and can''t sleep at night!

Thanks

What he invoices is not his income.
He will have to pay corporation tax, and then he will have to pay tax on whatever he pays himself.

Also- from what I hear, CSA are not inclined to look at company accounts. There is a line of division between family courts and business accounts.

I totally understand what you are saying however as the CSA have started the ''gross'' income calculations, and ex is a one man band, his gross income is what he invoices for - then he pays Corporation tax, no tax on his salary as he doesn''t pay himself enough!

Honestly, how does the CSA think that someone who spends in excess of £4k a month only earns £120 a week.

Totally winding myself up just thinking about it!

Well no- it doesnt work like that.
From what I hear CSA are hesitant to get too involved in the tanglements of business accounts which is why they go on his tax returns- Your best bet is to ask for details of any extra income which would cover the dividends

Under the 2012 gross income scheme the figure used for child maintenance assessments is the *taxable profit* from any "trade, profession or vocation" in the latest available tax year for which self assessment tax has been completed. Pension contributions are the only allowable deduction.

The Child Maintenance Service will only carry out a basic assessment and if the Parent With Care has further information or evidence of additional income such as unearned income or diversion of income which hasn''t been taken into account it is up to them to apply for a variation. Diversion of income can be considered if the Non Resident Parent controls the amount of income they receive and has unreasonably reduced their income.

However it can be difficult to successfully apply for a variation because the CSA/CMS has limited powers when carrying out investigations. IF an application for variation is unsuccessful the decision can be appealed. An appeal is decided by an independent tribunal which has more powers to get information.