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.


  • Alice says:

    Unfortunately the CSA cannot class a Directors Loan as income so this will not be taken into account in any MC they process. Another loophole that I am sure a lot of NRP’s are able to use to their full advantage – address the issue to your MP

    If your ex is in receipt of Tax Credits these can be taken into account for MC purposes – if your current MC does not include Tax Credits then contact your CSA office and ask for a re-assessment

  • Smithy says:

    I wouldn’t waste your time, he’s using a classic income management technique that is perfectly legal and is used by many people. You will never close this or many of the other income management techniques that are used and not specifically used to target CSA.

  • Cate says:

    This is disgraceful – I think that any father or mother who does not willingly want to pay a fair amount for the welfare of his/her children, based on their earning capacity, should lose the right to be considered a parent. Becoming a parent is a life long responsibility and when relationships breakdown that responsibility does not end. People need to realise that maintenance ultimately benefits the child more than anyone else and allows the resident parent (who often has to take the difficult decision to earn less to be there more) to do things for the child such as; music tuition, sports clubs and holidays that they otherwise would not be able to do. It would do people well to realise with rights always comes responsibility. Yes a parent has a right to spend time with their child but they also have the responsibility to financially and emotionally provide that child with the best life they possibly can. If they are hiding behind tax loopholes they are not doing this and should not enjoy their rights. Lets face it they obviously do not care that much for the child if they do not want the best for them!!

  • Steve says:

    You are confusing the loan income rules from companies. The £5,000 figure applies to a Director who has borrowed money from his company. The Directors Loan in a company represents taxed money that the Director has previously invested in the business or not taken out over the course of many years. These funds have already been taxed and are therefore not income.

  • gg says:

    Ref. Director’s loan, I seem to have the same problem with my ex who has paid himself a whooping 154,000 director’s loan. However, I have found some useful information to this regard and I think and hope that the CSA will take it into account.
    There has to be information filed with the accountants themselves as they have to record every transaction properly. Please follow this links:



    Can you please get in touch with me as I am experiencing the same problems and perhaps we could share.

  • Rose Hendin says:

    I have exactly the same issue as I’m sure many women do.
    My ex started anew company in 2011 and is paying himself a minimum salary but is taking directors loans.

    I have been getting £21.97 each month to care for my son and just can’t make ends meet.

    Any help would be much appreciated.

  • gg says:

    Has anyone come up with anymore information in relation to Director’s loan? I have now ended up in an appeal thanks to my ex applying for an appeal. He chose to ignore all correspondence from CSA in the past, like 6 months ago. How is he even entitled to appeal?

    Anybody knows more about director’s loans vs income? Steve suggested that the Director’s loan is money that one has put into the company before. I do not think this was the case with my ex. Shouldn’t one justify anyway what you take out the Director’s loan for?

  • Terry SCOTT says:

    Any ideas on how to deal with women who lie, trick men into fatherhood, blatantly accuse innocent men of being the father when its not possible.

    You lot sound like a pack of wolves! I trust your happy with your current partners or has all sense left your heads. Target your hatred and energies at the malicious, shambolic workings of the CSA. Don’t let the staff at the CSA get away either.

    If all else fails move on, life is short and not worth wasting it on the past.


  • Sally says:

    Can I ask all you ‘mothers’ how you would normally survive if the father was dead or if he was unable to pay…. It seriously, seriously pisses me off that you all seem to think you are entitled to his income!!

    Both parents should pay for their kids but nowadays the only people who actually pay for the kids are the government (child benefit, child tax credits and working tax credits (If PWC works p/t) and the NRPs… Yet you mothers think you have a god given right to your ex’s hard earned cash

    It really does disgust me and make me a ashamed to be a female sometimes… Where does self respect come into it for you??

  • Sally says:

    I have ‘[email protected]’ sending me private e-mails re this…. Unwanted, might I add….

    Are freaks like this supposed to have access to private e-mail accounts….


  • gg says:

    Sally, here is a response to your message.

    The best answer to a fool is SILENCE.

  • gg says:

    Rose, you can get the CSA to contact the financial accountant of your ex and they scrutinize his financial accounts. The CSA also uses forensic accountants. They do not just look at director’s salary but also drawings, debenture interest and they look deep into director’s loans too. They did the same with my ex; his financial accountant was also interviewed by a visiting officer….it is not to say that I will ever get all of the arrears as he is now applying for an appeal, it is to see if it is going to be granted…

  • Fiona says:

    Hi were you successful in getting anywhere with Directors loans? I am in the same position and have contactd my MP about it.

  • King Canute says:

    A man takes out a director’s loan. ie he borrows money from the company. Borrowing means you have to pay it back. And many of you women out there think you should have a slice of the action? Get real. It would be just the same as him getting a bank loan. It fair disgusts me what some of you women are like.

  • njt says:

    You should know the facts before you start accusing people – perhaps if you knew my circumstance you would not be so quick to judge. There are many children that fall foul of a system which allows men not to pay for their offspring! Self employment is a great guise – directors loans is only a loan if the director input the cash in the first place – what if he just confirms it as a loan and in reality no such loan exists?!!

  • kirst says:

    Hi, did anyone get anywhere with this directors loans issue? My ex pays himself peanuts but draws huge directors loans and consequently pays very little for our kids. I’m currently going through a tribunal which has been adjourned awaiting further evidence from my ex but the judge has already said that what he does with directors loans is allowed. My protests that his luxurious lifestyle is sustained by these loans which he does not pay back fell on deaf ears!

  • Mark says:

    What about the poor fathers who do not get to see their kids but are pumped every month by some females. I was in a relationship she messed about and we broke up due to it, i do not get to see the kid and i am broke thanks to maint payments!!

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