Ex gets directors loans as income
January 15, 2013
My ex is in receipt of directors loan and therefore this is not deemed as income by the CSA. However, my entire divorce and the maintenance was agreed on the basis of him earning director’s loans. So, this is an utter nonsense.
In any case it is a loan and any directors loan over the sum of £5000 has to be repaid. This is where the tax liability kicks in and therefore this is then an income, when you are liable for income tax.
I have a mind to contact my local MP as this loophole is utterly disgraceful.
This same loophole will permit such individuals to claim working tax credit as they can declare a zero income given they are paid in the form of a loan.
My ex is also entitled to child benefit. He earns(takes in excess of the new £50k limit), but there is no information to be found about those who are in receipt of directors loans.
My question to the CSA was how would he be able to rent or take a loan or have credit cards if he did not have an income?
As you can see the entire system is a shambles, but I will continue my fight and if I am successful I will make it my duty to spread the word in how to overcome the many hurdles I have experienced, in order to help others avoid the distress and tireless campaign to see justice done.
The sooner ex partners understand it is the children that lose out and not a game of wills and strategy to score points against their former partner,the better all concerned would be.