self employed offshore account

[spiritedaway]

My ex partner is a high earner but since our recent split he has moved his bank account offshore and tells me that for tax purposes he earns 6k. Will the csa investigate? He has done this on advice of how to avoid paying. Is anybody aware of any civil action i could take?

[LucindaCarlisle]

Who employs him? How much income tax does he pay?

[prh47bridge]

If he is self employed the CSA can look at his other, non-taxable income such as dividends and investigate to see if he is diverting money to someone else. Whether or not he is self employed they can also take a look if his lifestyle suggests he has a higher income than that declared. Having said that, the CSA are frequently highly inefficient so don't hold your breath.

Just moving his bank account offshore makes no difference to the tax he should be paying. If he is earning income in the UK he should be paying tax in the UK. To reduce his taxable earnings substantially either involves some other measures or he is committing fraud. If you suspect the latter, I would be tempted to report him to the tax authorities.

In general the courts no longer have any involvement in child maintenance. If his income after tax, NI and pension contributions is more than £2,000 a week you can apply to the court for extra maintenance as that is the ceiling the CSA use for calculations.

[prh47bridge]

Sorry - should have looked at thread title! He is self employed so all of the points I made above apply. And reducing his income substantially suggests he may be committing some kind of tax fraud.

[spiritedaway]

Thanks...so it is still worth involving the CSA. He gets paid offshore and it moves through 3 accounts in different companies.

[prh47bridge]

Sounds like tax fraud to me. The income is earned in the UK so it is subject to UK tax. The fact it is paid into an offshore account is irrelevant.

[Debbie1968]

My ex husband has been assessed at paying me nothing for my 3 children at home (one of whom moved back home 3 months ago after living with him with her brother for 3 years out of the 13 yrs we have been divorced). Now CSA are deducting 20% of my wages (£300) a month for both my son and daughter, despite the fact she's moved back home as I am not in receipt of her Child Benefit yet as this can take months to come through now! How can I possibly support my 3 children at home with no maintenance on 2 part time jobs with that much deducted each month! (and paying for my daughter twice over!) He works for an American Company in Afghanistan earning thousands and its all put away in an offshore account. He also has his own business up and running over here. He and his wife have 4 forgeign holidays a year, new refurbs and extensions on their house, eat out all the time, top of the range 4x4 (I drive an old banger) AND pay for private schooling for their 6 year old they conceived through IVF costing £32K and pay for her stage school at weekends!!!!! For years CSA have not taken any money from him and he just laughs at me when I end up shamefully begging him for support! I've always given him access, driving the 6 hour round trip over the years for him to see them (always with promises of help with petrol and his excuses why he can't come and get them - none of which ever happen)....I am tired of battling with him and wish the Law would change this loop hole of no jurisdiction on his wages despite him living in this Country with his family and enjoying it all tax free!!!!