A question about : NRP limited company, missed payments
Hi, I'm have just registered and I am new. I wonder if anyone could help. There are a number of issues and my case is very complicated and I need advice on two different aspects firstly:
NRP is the sole director of a limited company, does the old low salary high dividend tax avoidance (it's legal). To avoid corporation tax at year end puts a lot into personal pension from limited company business account.
He was firstly just assessed on the low salary which came out at Ј15 a week per child each (2 children) I applied for a variation that picked up the dividend that he didn't declare. He was absolutely furious. Since then he has tried every way possible to reduce, reducing the dividend, reducing his salary by over 25% and claiming that over 100% of his yearly salary are put into a personal pension, the pension contribution comes from his limited company so this isn't true. Child maintenance took the pension contribution off his assessment which considering it's more than his salary is ridiculous. The last straw was the dividend reduction and they phoned me to say they were very dubious and found the financial info he was providing unbelievable and they would look into it and the figure has become so low. This is 2-3 months and I have not heard anything.
His assessment has changed more often than he changes his socks.
If he paid based on the salary and the low dividend that would be fine but giving fraudulent info about the pension is out of order. If this is in question surely CM should ask for proof beyond doubt of the origin of pension contribution if in doubt? I have been told this has been passed to another department.
He has not paid anything for 2 months so missed the last 2 payments. he pays direct. I have phoned CM 5 times to tell them and never spoken to a case worker, been fobbed off and not received a call back as promised every time, including being promised a call from a supervisor. I have requested the collect method twice, not sure how that would work as he pays himself. But nothing has happened.
I called again today and insisted I spoke to a case worker but they go home early on a Friday. I said I wanted to escalate to the complaints procedure and the woman I spoke to was so unhelpful. After no one telling me anything for 2 months she said there is nothing they could do and it could take 6 months to get anywhere sorry. I felt my request to escalate to a complaint wasn't listened to or any action will be taken.
Second question is any advice on raising a complaint about the service received?
Any advice would be greatly appreciated.
Best answers:
- I am not an expert in this.
However - just because he or his company is paying >100% salary into a pension - unless there is something in the legislation preventing him from doing so - this may not be illegal. - It's possible for him to put 100% of his salary into a pension plan because he has dividend income too. They wouldn't have taken his dividend income into account without a variation request so he probably didn't mislead them and he probably has not done anything fraudulent in respect of the dividend or the pension.
Is it possible that he has a new payment schedule due to reassessment? You need to insist on speaking to someone and get a full explanation of what's going on. If he has missed 2 payments they should be taking action. - Hi thanks for the replies
The pension is paid via the limited company into his penal pension, not from his salary/dividend. Whereas a normal employee would make pension contributions from their salary and it would show on their payslip this is taken off the assessment which is correct. His pension is not paid from his salary or dividend so shouldn't be taken into assessment because the figure he receives isn't affected by the pension contributions, by putting all profits in a pension before year end = no corporation tax. Thats fine that he does that I don't care but it's fraudulent information he is providing saying he pays this off his salary.
As soon as they found his dividend he:
Reduced dividend by 40%
Claimed 112% of salary into pension
reduced earnings by at least 25%
Stopped paying all together
He is making it very difficult, we did have a family arrangement and he went back on that and had direct pay organised through child maintenance which he has stopped now I have asked for collect and pay. - Perhaps he has now taken out a personal pension paid from his salary. I don't think there is anything to stop him doing that.
Have you asked your MP for help? Sometimes intervention from an MP can make them take notice of your complaint. - You probably havent heard anything because there isnt much they can do. As mentioned if he doesnt tell CSA about dividends they can only find out if a variation is requested. I am pretty sure directors pensions are different than normal (I dont pay myself one although i have been told by my accountant that it is very tax efficient for directors). I know directors NI is treated differently than a normal employees, so he 'may' be perfectly legal in what he is doing but it does sound a bit odd.
I would suggest challenging the legality of the pension contribution is probably the only thing you can do. If this turns out to be legal then you are probably stuffed. The CSA have no legal right to even ask about the companies accounts and there are numerous very legal ways to get money out of a company account into a personal account with no (or very limited) tax liability and therefore no legal way the CSA can challenge it. - Hi I have challenged the pension contribution it is legal, it comes out of profit in the business account which is fine, not a problem. But it doesn't come out of his salary or dividend so shouldn't be taken off his assessment. This is apparently with 'another department'.
I am going to write a letter of complaint detailing 6 calls over 2 months where I was promised I would be called back by a case worker and no one has acted on missed payments or given any advice. I will then only ever phone to report future missed payments. I basically give up.
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