Going self employed

tinyviking · 21 June 2017 at 1:44AM

Hi all

I have recently gone self employed and wanted to know if I can protect any of the profit my business makes from the csa?

I was earning around 30k before going self employed and was more than happy to pay the money the csa asked I pay my ex, in fact i overlooked 3 months over payments to her when i first had to leave

I set up as a sole trader 2 months ago and already look like i will make profit in the region of 60k I am only paying myself 25k a year as i want t put the rest back into the business to buy another van and bigger warehouse etc.
As i see it thought the csa will take all my profit as mine and give a large chunk to my ex.

Ive already offered to up the monthly payment to 500 if we do an arrangement outside of the csa but she doesn't want that.

Any advice, not to get me out of paying but just for all my profits not be liable?!

Thanks

justontime · 21 June 2017 at 10:36PM

If you want to protect your profits and reinvest in your company, you need to become a limited company. It's very quick and easy to do and there is a lot of advice online to help you.

If you do that please try to be fair with your child support payments. I hope your business continues to thrive.

lovinituk · 21 June 2017 at 10:41PM

As a sole trader all that profit is your money, regardless of what you draw as 'wages'. There is no distinction for income and tax purposes between a sole trader and their business.

Red-Squirrel_2 · 23 June 2017 at 10:25PM

tinyviking wrote: »

Hi all

I have recently gone self employed and wanted to know if I can protect any of the profit my business makes from the csa?

You mean protect your profits from your children.

justontime · 23 June 2017 at 11:02PM

Red-Squirrel wrote: »

You mean protect your profits from your children.

Every business needs to retain some capital, it's good business sense otherwise the business couldn't survive if business was slack for a month or two. Also many businesses need or reinvest capital in order to develop. Managing the business sensibly will be better for the children as it will ensure a stable income and in the long term if the business thrives the children will benefit too. The original post made clear that there was no intention to avoid responsibility for child support.

Red-Squirrel_2 · 24 June 2017 at 9:39AM

justontime wrote: »

Every business needs to retain some capital

That will be perfectly possible after paying the correct amount due for maintenance.

I think it's good to use the correct words in these situations. It's not the CSA he wishes to deprive of his money, it's his children. If that makes him feel less comfortable about the plan, maybe there's a reason?

DUTR · 24 June 2017 at 3:01PM

justontime wrote: »

Every business needs to retain some capital, it's good business sense otherwise the business couldn't survive if business was slack for a month or two. Also many businesses need or reinvest capital in order to develop. Managing the business sensibly will be better for the children as it will ensure a stable income and in the long term if the business thrives the children will benefit too. The original post made clear that there was no intention to avoid responsibility for child support.

Sometimes you have to explain to the ignorant, indeed you cannot tar everyone with the same brush on both sides of the fence.
Going SE is not done to avoid or reduce CS contribution, and not everyone lives just to support others, if you don't survive yourself then how can you support others?
If a case is CMS as it will be nowadays then they will suggest the fair amount based on your most recent P60, after that you are welcome to contribute more if you so wish.
Good luck with your business venture and best of health to you all.

MataNui · 26 June 2017 at 3:54PM

You need to be a Ltd Company. Do it now. The way CMS work could leave you bankrupt pretty quickly. If you do make 60K this year then they will want most of that. They will also assume you will be earning that next year. If you dont earn that much next year then you could basically be !!!!ed.

CSA/CMS dosnt work with variable income. It never has.

tinyviking · 25 July 2017 at 6:58PM

If you read my original question you'll notice I've already offered to up the CM payment even though I am still only taking the same amount of money out of the business as I made employed.
Even though I'm technically earning more I am not pocketing the money and have it in a business account so i can hopefully expand and afford a 2nd van and put my apprentice through his gas course..
If I find myself in a position to pay myself a huge wage in the future I will make sure my kids get as much as possible.
Me and my ex are on good terms and I've already paid for her to take them to centre parcs this summer holiday. Don't think I'm trying to get out of anything. Some people genuinely want to look after there kids but also have never had to deal with all these finacial issues before.

Thanks for your concern though....

tinyviking · 25 July 2017 at 6:59PM

Thanks to everyone else.

I'm going limited at the end of the month.

Going self employed

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