CSA- Going self employed

My partner and I are starting a company and as of the 14th March he will be classed as self employed.

I called the CSA today to update the information and find out how much we will need to pay etc etc and i was told that we have the pay as we have been for 13 weeks after the 14th March and then we send in our accounts for them to work out how much we pay in the future.

It is a new business and we will be lucky to earn anything in the first few months so we simply cannot afford to pay the CSA the same amount when our circumstances have changed!

Someone there did inform me that we could pay what we could afford and arrears would build up and once our calculation is worked out we may not be in arrears anyway OR she said try and pay it and again after the 13 weeks if we have paid too much we will get it back! How will we get it back, they will have paid the money to his EX what are they going to do ask her for it back!!! i don't think so!!

Any advice would be much appreciated.

Many Thanks
«13456789

Comments

  • Soubrette
    Soubrette Posts: 4,118 Forumite
    How are you going to support yourselves while your business has no income?

    I believe the CSA will repay any overpayments to you and it will be them that chase the ex.

    Is there any chance of coming to a private arrangement with the ex?
  • MY parents are supporting us whilst we have minimal income so we are cancelling sky, gym memberships etc etc so it is basic bills.....

    Unfortunatly we were in an agreement however when the third child left college and we reduced the amount his ex contacted the CSA and set it up that way.

    Our son is going to have to suffer without the luxuries for a few months so I'm afraid we all have too!
  • It's unfair of them to ask you to carry on paying the same rate, is your case 'new rules' or 'old rules'?

    Generally, on new rules, you would call to confirm your partner has left his job/is no longer employed, and they would nil-assess you at that point, they would then ask for your self-employed profit/loss accounts...obviously as you will just be starting up then you will probably be spending more than you are earning, but if they work out a maintenance calculation it will then be back-dated to the start of the self-employment, so try to make sure you keep approx 15% aside every week. Easier said than done, I know, but I really don't see how they would expect you to carry on with an assessment based on an income that you won't be receiving, especially when it is an easy enough matter for them to call his employer and ask them to verify that he is leaving employment.
  • A few tips for you:
    - document the income you receive from your family as a loan agreement with a repayment schedule to pay them back, have it witnessed by a someone too. If part is being used for building up the business try and separate this out as a loan to the business.
    - Write to the CSA recorded delivery to request a change of circumstances (put this in big bold capitals and the reason for the change) and state your current income ie nil, provide an outline of your first months profit and loss account based on what you know so far, and state that you will submit your tax returns at the end of the financial year for reassessment and will pay any additional payments necessary. If you have an accountant ask him to confirm your first months trading with a letter. Copy your P45 to them too.
    - you could request an interim assessment for self employment to be made by the CSA, think it's about £30-£40 per week, they have a booklet on their website for self employed and they should follow their own guidance.
    - If the CSA do not review your circumstances on this basis follow this up with a formal complaint using the complaints procedure and also be prepared to get an MP involved by letter.
    - There may be some advantages if you set up as a limited company in terms of the share split between each of you.
    - Make sure you have a partnership agreement in place between you even if you are not incorporated at companies house to show how any profits and losses are to be split 50\50 60/40 90/10. You can download this from the internet legal stationary providers. If your partner has less share of the profits because you have invested more personal capital to set up the business, the agreement will be the basis which the CSA must assess their share of any income received, otherwise they will assume 50/50.

    It's worth a bit of effort at the outset as continued payments on starting up a business will kill it before you even get off the ground, and try to document any agreement between you both and have this witnessed.

    Time to batten down the hatches! And don't give the PWC any info on your new business, company name, where it trades from etc. etc.. You only need to share this with the CSA if they ask and even then get some advice on what you have to give them or not.
  • swingaloo
    swingaloo Posts: 2,681
    First Anniversary Name Dropper First Post
    Forumite
    Im probably not going to make myself popular with this view but I dont understand your reasoning.

    Your partner has children. They are a comittment and need supporting, end of.

    If you cant start your business and still support the children then why are you starting the business. You have a choice in going self employed or not and if he cant fullfill his obligations to his children by going self empolyed then perhaps you need to re think your plans or are you just assuming the childrens mum will just carry the burdon alone? Children are for life, you cant just choose not to support them.
  • speedster
    speedster Posts: 1,300 Forumite
    swingaloo wrote: »
    Im probably not going to make myself popular with this view but I dont understand your reasoning.

    Your partner has children. They are a comittment and need supporting, end of.

    If you cant start your business and still support the children then why are you starting the business. You have a choice in going self employed or not and if he cant fullfill his obligations to his children by going self empolyed then perhaps you need to re think your plans or are you just assuming the childrens mum will just carry the burdon alone? Children are for life, you cant just choose not to support them.

    mmmmmmmmm.

    lovely attitude to go through life with.

    so, because he has children it means he cant go for it and try to better himself, which by the way will benefit his children in the long run if successful.

    mind you, that's just the kind of response i've come to expect on here.

    Cinders, don't worry about the csa for the time being. if the business doesn't do too well for the first year or 2, then assessments will be minimal anyway.

    i would advise setting a sranding order up for whatever you feel you can afford then see what happens with the business. if there's no profit then there's no profit. end of.
    NEVER ARGUE WITH AN IDIOT. THEY'LL DRAG YOU DOWN TO THEIR LEVEL AND BEAT YOU WITH EXPERIENCE.

    and, please. only thank when appropriate. not to boost idiots egos.
  • swingaloo
    swingaloo Posts: 2,681
    First Anniversary Name Dropper First Post
    Forumite
    so, because he has children it means he cant go for it and try to better himself, which by the way will benefit his children in the long run if successful.


    Not at all, but I believe that if you have children you support them. We all have dreams and ambitions but the reality is that he has made a choice to have these children, you cant choose not to support them. Would you suggest that the taxpayer should pay for his children while he persues his dream.
    And no Im not an embittered ex who feels hard done by. I have a partner who has children by his ex to support and if it means we dont have all the luxuries and options we would like thats tough. He had children, he has to support them, I wouldnt want it any other way.

    I cant understand people who dont give a damn if there children have to go without.
  • swingaloo
    swingaloo Posts: 2,681
    First Anniversary Name Dropper First Post
    Forumite
    edited 11 February 2011 at 5:06PM
    Cinders, don't worry about the csa for the time being. if the business doesn't do too well for the first year or 2, then assessments will be minimal anyway.

    i would advise setting a sranding order up for whatever you feel you can afford then see what happens with the business. if there's no profit then there's no profit. end of.

    Thats the way! See how much you can get away with. Just out of interest- who is going to provide for the children if there is no profit?.

    lovely attitude to go through life with.

    Well if looking after your responsibilities by supporting your offspring means you have a bad attitude- bring it on.
  • kelloggs36
    kelloggs36 Posts: 7,703
    First Anniversary Combo Breaker First Post
    Forumite
    I agree - it looks very selfish - as long as the NRP is okay then stuff his old family! Is it a choice of going self employed or starving, or changing jobs to take a chance of making it better later? If the latter, then I agree with Swingaloo - make sure you factor in the costs of your children before embarking on such a risk.
  • AnnaV
    AnnaV Posts: 531 Forumite
    Could he not carry one working, you set up the business until it starts making a profit?
    Anna :beer:
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.4K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards