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Clare, Family Solicitor
Category: UK Family Law
Satisfied Customers: 33823
Experience:  25 years experience of all aspects of family law
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Hello, Im currently paying my ex girlfriend through CSA, I

Customer Question

Hello, Im currently paying my ex girlfriend through CSA, I was in a staff role but now have set up a limited company (this was already in progress before the CSA got intouch aso has nothing to do with trying to save money). My ex is not hapy with the new calculated amount which was based on me being on a minimum wage (141 per week) and paying no TAX or NI. I was told however that they would be intouch once my company was on its feet to do a variation on dividends. This never happened and the next thing I have a letter saying I am going to a tribunal. Whilst this s going on, I am still paying my daughter £115 a month so she can buy clothes, transport etc. Ive been told that there is a back log in tribunals and it could take upto a year to progress, I dont want to wait a year to be told I should of been paying more and then be hit with a huge arreared debt? I have always provided for my daughter and it seems my ex is fabricating information to extract as much money from me as possible. My buisness pays dividends to both me and my wife as she is a shareholder. cCan my wifes dividends be taken into account? Thanks in advance

Submitted: 3 years ago.
Category: UK Family Law
Expert:  Clare replied 3 years ago.
Thank you for your question
I shall do my best to assist you but I need some further information first.
What was your wife's investment in or contribution to the business?
When did you first receive dividends?
Customer: replied 3 years ago.
Hello, firstly my ex wasnt my wife and has nothing to do with my business. It is my current wife who is a 50/50 shareholder and does my books,secreterial work and sources new work for me. I first received diviends 3 weeks after I started my new business so near the end of june 2013. Phil
Expert:  Clare replied 3 years ago.
It was indeed your current wife's contribution that I was referring to.
have you declared the amount received in Dividends to the CSA and asked for a re-assessment?
Customer: replied 3 years ago.
I havent had chance to. I was told they would intouch within 3 months to re-assess as I wouldnt know what dividends i was going to take untill my business was up and running. Instead of re-assessing me they have jumped straight to tribunal?
Expert:  Clare replied 3 years ago.
Have you calculated how much you should be paying based on your dividends
Customer: replied 3 years ago.
Ive tried to tell csa about my dividends over the phone but there just saying dont worry. Everything is in order you, been open with us and have done the right thing, you wont end up in debt. It will get sorted on your tax year end next year.
Expert:  Clare replied 3 years ago.
But have you done the calculation so that you know where you stand?
Customer: replied 3 years ago.
Relist: Incomplete answer.
Expert:  Clare replied 3 years ago.
I have not actually given an answer yet as I am still trying to establish all the information that I need to give you a useful response.
The current CSA calculations are not complex and you can get a guide as to how much you should be paying based on the dividends using the Calculator here
This will enable you to set aside money to ensure that you are not in debt when a decision is finally made
Given that your current wife takes an active role in the company her dividends do NOT count as part of your income for assessment.
From what you have said your ex has challenged the assessment - possibly on the basis that your declared income does not match your lifestyle. If so it is doomed to failure as clearly you have been honest and upfront at all stages.
The only risk is that there will be a reassessment anyway and then there will be arrears - which can be avoided as outlined above.
As a guide - never rely on phone calls with the CSA ALWAYS put it in writing
I hope that this is of assistance - please ask if you need further details

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