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I am not trying to get out of supporting my son in any way
I know if you have a limited company you pay your self minimum wage
the CSA can't bleed you dry
What are peoples thoughts on this
Many thanks
Dadwhocares
Hi There,
I don't think you would gain anything by paying yourself minimum wage as you wouldn't be very well off.
My understanding as a limited company you pay yourself a wage, and then every penny profit stays in the company, you can pay yourself a bonus each month/quarter/anum but if you do that then you are still earning the wage so still have a liability to CSA.
I would go sole trader/non limited and do as advised here on another thread and pay a wage, an exact wage into a seperate bank account so you have a record of monthly income to shom CSA, if your wage is say, £123.45 then pay that amount in.
GTTS
My earnings after tax would give my ex about 50 week
Separate bank account one for me to be paid in full
and one to show CSA 150week wages?
I was thinking pay my self 150 week and buy assets with company profit's
No I was going on advice given before.
You have one business account for profit and a personal one to pay your FULL wage into.
You say you aren't trying to get out of paying CSA so I don't think that making out you are earning only £150 a week isreally the right way to go.
Plus you are running the risk of your ex asking for an enquiry into your living expences compaired to your declaired wage and or her reporting you to the inland revenue for investigation and if you are in business thats the last thing you want.
Play it straight it will be a lot less hassle in the long run.
GTTS
Hi,
CSA stopped at source 40% of my salary, by default they take 30% - a few things you can claim for see the website calculator.
They dont care about living costs and they have the law on there side.
On a good note they are being dispanded in 2014 as not fit for purpose so not sure what will happen next year ?
LTD options
pay mininum wage to yourself.
allow extra payments through dividend shares (NI exempt)
Use your business expenses option heavily to reduce your profit
Get an accountant!!! asap!
The options for ltd is far better than just self employed but really is only worth doing if you earn over 50k below that its not much of a perk. If you delcare low income accounts say 10k then they will NOT question your earnings as they dont have the resources to look into it. They only like easy targets where an attachment of earning can be applied at source.
In my example
gross turn over 90k
wage 10k
exspences/sundries 60k
dividend share 10k
pension fund 10k loan taken out to get money back from pension
wage declared ?
10k
i do not condone anyone not paying for the child but i think there needs to be a better system and a fairer one.
In the mean time make the payments you think you should and get creative with the rest other wise they will have it.
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