Change the way Child maintenance service make their calculations

Change the way Child maintenance service make their calculations

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Robyn Allan started this petition to The Government and

There is a legal loophole that enables the non resident parent to exploit the system and currently the child maintenance service have no powers to do anything about it. 

If the non resident parent makes themself self employed and a director of their own company they can then pay themself whatever wage they so choose. This means if they choose to pay themself the bare minimum wage (even if their ‘company’ is earning more) then the child maintenance service have to base their calculations upon whatever the non resident parent is paying themself, ie their wage. 

You can ask for a variation order to be done, this is when you ask the child maintenance service to take into consideration the non resident parents company’s dividends. The flaw in the system is that not all/any dividends have to be declared to HMRC and sometimes they only have to be declared at a certain time of year. so unless you know when the non resident parents company is declaring the dividends and you request the variation be done at that specific time, then your variation order will be rejected and the child maintenance service still have to base their calculation on the wage slips the non resident parent is paying themself. 

This petition is coming from personal experience of having to deal with the child maintenance service for over 5 years. whilst their systems and protocols are frustrating, to say the least, I realise their hands are tied in some instances. The non resident parent in this instance has made themself a director of their own company (self employed) and paying themself a bare minimum wage. Due to this loophole ‘they’ now have to pay £10.57 per week in maintenance. To give some context, in 2016 before the non resident made themself a director of their own company, ie employed by the same company ‘they’ still work for, the calculation the cms made was to be paying a monthly sum of £350. 

as this company, the non resident parent has set up, is new no dividends have to be declared. 

There are a lot of things that need looked at with regards to the child maintenance systems and their powers but a little bit of research suggests that although this is a new issue for me, it is not a new issue as a whole.  i feel that it is time the child maintenance service had more of a power when it comes to loopholes that are so clearly being exploited to the detriment of children. I’m not entirely sure I have the answer but I know something needs to change. 

I would very much appreciate if you signed my petition so there is some noise made on this subject. 

0 have signed. Let’s get to 500!
At 500 signatures, this petition is more likely to be featured in recommendations!