CSA payments

[simmoshouse]

My sisters ex has set up as a limited company and has manipulated his income so that he pays the minimum of �5 per week. He states that he "earns" �100 pw, but he clearly could not sustain his life style if this was his true income. has anyone got any suggestions on what avenues my sister can explore and also can you tell me if in future his income is confirmed at a higher level is there any recourse to back dated payments and could he be pursued for fraud.

Any help would be greatly appreciated.

thanks

[baileybird]

If only the above were likely to happen - my friend had this happen to her - her husband claimed that his earnings were actually repayments of a directors loan as a director of a limited company and that was the end of that. Never got her CSA investigated despite many many requests.

Why do these men not want to support their children. It is very very sad, but my friend's dealings with the CSA were completely fruitless.

[Androcles]

I agree with the statements made by the other respondents, but make one comment which you should be prepared for. Setting up a limited company is not an indication of wealth in itself. If he has a certain standard of living, it is quite possible he is living off the loans he took out to start up the business, until the business starts to make money. So his income may be that low and "the company" is lending him money. Stupid, I know, but an awful lot of people setting up businesses do it! You really need to find out how the business is actually doing and if it is a new startup, you may have a long wait before he has to publish accounts, and even then, they may not tell you a lot.

You need to find out wat kind of business it is and is it a cash payment business. What kind of overheads has it got, vehicles, offices, capital equipment, office equipment. stationery etc etc? I'll bet most of it is on borrowed money, otherwise wouldn't your sister have known if he had a ton of cash out by to lay out on all that stuff?

I repeat I am not agreeing with what he is doing, but this may well be the defence he will put up when challenged and your sister should be prepared for that.

[simmoshouse]

Thanks for the comments so far. The limited co is in essence an umbrella company as he is effectively doing what he has been for the past 15 years, selling EPOS systems. He is effectively an agent for Epos manufacturers and doesnt hold stock other than some demo systems. His outgoings will only be his car, phone, PC/Broadband, fuel, stationery and probably an admin wage for his 2nd wife. His start up costs would have been minimal as im sure the car is leased. He was previously paying more, tho not much, and has sent my sister a letter stating he will revert to the previous amounts if she drops the CSA avenue - she will be forwarding this to the CSA.

Like many he just doesnt recognise his responsibilities. We wont give up lightly and will be putting all suggestions in a letter to the CSA - If nothing else we dont want to make this easy for him by lying down and intend causing as much aggro as possible.

[simmoshouse]

Still no joy on this one. The limited company has just posted its accounts at Cos House, but as it is deemed a small company the detail is basic and it doent include income details (directors pay). Can and should the CSA be asking for a copy of the full accounts to confirm his income and also if they cant or wont would my sister be able to get a copy if she went through a solicitor? Her ex has been boasting that he is evading CSA payments by not providing full details and he has told his kids he earns around £40-50k per annum, as opposed to the £5k he has told the CSA. It beggars belief that the CSA dont take adequate steps to confirm the income in such cases by viewing accounts, accounting books or his company bank accounts.

Any suggestions on where to go with this greatly appreciated.