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Limited company and...
 
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[Solved] Limited company and dividends

 
(@Markwilliams1983)
New Member Registered

Dont really want to go into much detail here regarding the background but I had a one night stand a couple of years back and turns out I'm the father of the child.

At first everything was OK. I was contributing what I deemed a fair amount (£275/month). I was doing all I could. Then all of a sudden she just turned into a psycho. Tried to use the baby as a weapon to get to me. Stopped me seeing him etc etc. She's an absolute nightmare. Smokes a lot of weed I've found out since. A real nasty piece of work.

Anyway I have a limited company that I pay myself a salary from. I've had it a couple of years and not yet paid my self any dividends from it. The company is 50/50 with my business partner and doing pretty well. I want to stay in control of the money I pay this evil witch, but I'm worried that if I start paying myself dividends will that be considered by the CMS. Oh yes I forgot to add the day she decided that I couldn't see him she went to the CMS straight away in order to get more money.

Will the CMS just take my salary into account? Or take the dividends as well?
And if I pay myself a dividend how would the CMS know about it?
If she never applied for a variation would it just be assessed on the salary that gets paid to me by the limited company?

Any help here would be greatly appreciated as I've had mixed messages so far. This isn't a dodge in any way. I already pay a decent amount a month and what I want to do is pay her a reasonable amount and put the rest away for him when he's older.

Cheers

Quote
Topic starter Posted : 22/03/2017 12:14 pm
(@got-the-tshirt)
Famed Member Registered

Hi There,
.
The CMS will work out what you have to pay based on your anual tax return, so what ever you pay yourself whether in a wage or dividens will show up, there aren't really any way to get around this now as it's no longer a case of sending on 3 wage slips, as said they now look at what the inland revenue have on file for you earnings and work it out from there.
.
GTTS

ReplyQuote
Posted : 23/03/2017 12:17 am
(@motherofafather)
Honorable Member Registered

Hello Markwilliams1983,

I have sent you a private message.

ReplyQuote
Posted : 23/03/2017 11:00 pm
(@Markwilliams1983)
New Member Registered

Hi GTTS thanks for your reply.

I have spoken with my accountant and also CMS and they have contradicted what you have said. Both said they will look at wages/salary and the calculations will be worked out from there. Unless I tell them about any dividends or she applies for a variation then it will be just salary that is taken into account

ReplyQuote
Topic starter Posted : 26/03/2017 5:13 pm
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