Q&As

A non-resident parent (NRP) is self-employed via their own company, and able to select how company funds are applied for their benefit (including meeting quasi-personal costs within the company wherever legally possible), and also using a large director's loan to return money to them each year in lieu of salary dividends. What approach will the Child Maintenance Service (CMS) take to this on assessment of the NRP’s income? Will the CMS take a broader view, or will its assessment be limited to the salary/dividends as reported on the NRP’s tax return?

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Produced in partnership with Katherine Illsley of 4 King’s Bench Walk
Published on: 06 February 2018
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A person with the care of a ‘qualifying child’ may apply to the Secretary of State for a maintenance calculation by the CMS. A child is a qualifying child in accordance with section 3 of the Child Support Act 1991 (CSA 1991) if one or both of their parents is not living in the same household as them.

A non-resident parent who is self-employed is obliged to pay child maintenance just as an employed parent is. The difference is that it can be more difficult

Katherine Illsley
Katherine Illsley

Katherine’s family practice covers matrimonial finance, TOLATA, Schedule 1, and private law children proceedings. She has experience acting for local authorities, guardians and parents in public law children cases, including in cases involving allegations of non-accidental injuries.

Katherine also is regularly instructed in housing and property work, and due to the frequent crossover with family law has a particular interest in cases involving trusts.

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Jurisdiction(s):
United Kingdom
Key definition:
Non-resident parent definition
What does Non-resident parent mean?

A term used in relation to both private children proceedings and regarding statutory child support in relation to the parent with whom a child does not primarily live.

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