CMEC and self employment

Jet

Another question...:o

I understand that CMEC will be using gross income rather that net income to work out maintenance payable. All fairly straightforward for PAYE NRP's, but how does that work with self employment? Surely they aren't going to use the gross profit from the self employed NRP's accounts are they?

kelloggs36

Not an expert, but I think it will be gross pre-tax profits, so after allowable expenses.

Jet

kelloggs36 wrote: »

Not an expert, but I think it will be gross pre-tax profits, so after allowable expenses.

Thanks for that.

So pretty much as it is now as I understand they don't take the net profit from any business, it is sales less allowable expenses.

Found_true_love

kelloggs36 wrote: »

Not an expert, but I think it will be gross pre-tax profits, so after allowable expenses.

Kelloggs, you are right, you dont need to produce your workings out just state to the CSA what is your "taxable" profit for the year.

I then just told the CSA to look at my tax returns and when they asked me my earnings from ALL my income sources (hoping that I would declare my turnover figure and then they would have based thier calculation on my verbal statement) I just parrot fasion said "my tax returns tell you all the expenses and net income that I produce for the inland revenue you have access to the return go look at that"

We went through three or four of these phone calls (cos my ex said I was lieing to them) and they believed my ex that I was covering up some income silly them it was all in my tax return.

Thus everything that the inland revenue say is allowable as a "company" expense, thats a % off of your main residence costs (repayments on mortgage, heating, lighting, council tax, cleaner etc.) if you use a room as your office, all your cars that you need for the business, wages for the secretary (which of course they pay tax on), cost of sales (purchase of materials, tools, consumables, stationary, postage, fuel, car running costs) accomodation if you have to stay overnight away from your main residence due to business, subsitstence (cost of food whilst you are away from the home working (more than a certain distance)), the list (as my accountant tells me) is quite extensive.
No wonder that my business makes so little gross profit :T Its a shame the ex didn't take up my kind offer of voluntary maintenance when she had the chance because she thought that because my invoice totals were so large that the CSA would make a very large assesment for her.......

Oh dear, it legally and within all the inland revenue and csa rules came out as a sum 60% lower than what I was offering her voluntary.

Dont you just love being self employed?

pd001

Found_true_love wrote: »

Kelloggs, you are right, you dont need to produce your workings out just state to the CSA what is your "taxable" profit for the year.

I then just told the CSA to look at my tax returns and when they asked me my earnings from ALL my income sources (hoping that I would declare my turnover figure and then they would have based thier calculation on my verbal statement) I just parrot fasion said "my tax returns tell you all the expenses and net income that I produce for the inland revenue you have access to the return go look at that"

We went through three or four of these phone calls (cos my ex said I was lieing to them) and they believed my ex that I was covering up some income silly them it was all in my tax return.

Thus everything that the inland revenue say is allowable as a "company" expense, thats a % off of your main residence costs (repayments on mortgage, heating, lighting, council tax, cleaner etc.) if you use a room as your office, all your cars that you need for the business, wages for the secretary (which of course they pay tax on), cost of sales (purchase of materials, tools, consumables, stationary, postage, fuel, car running costs) accomodation if you have to stay overnight away from your main residence due to business, subsitstence (cost of food whilst you are away from the home working (more than a certain distance)), the list (as my accountant tells me) is quite extensive.
No wonder that my business makes so little gross profit :T Its a shame the ex didn't take up my kind offer of voluntary maintenance when she had the chance because she thought that because my invoice totals were so large that the CSA would make a very large assesment for her.......

Oh dear, it legally and within all the inland revenue and csa rules came out as a sum 60% lower than what I was offering her voluntary.

Dont you just love being self employed?

Now that is what i call a result. Well done! :beer:

Found_true_love

pd001 wrote: »

Now that is what i call a result. Well done! :beer:

Thank you pd001, the story carries on and if your lucky or you want me to I can tell you all the strokes my ex tried to pull with money and contact, it contains everything a film should have, money, jealousy, hatred, envy, sex, arrests, criminal proceedings, drugs (lots of paracetamol) and rock and roll and I think that because I am dealing with a person who gets angry she makes mistakes that I can capitalise on.

The bottom line is that I pay an assesed amount of maintenance, and my son gets to see his daddy more often than if I had just let the system steamroller me.

I love my son and we share great times together and long (and more) may it continue.

Learn the CSA rules, learn thier motives, learn the loopholes and use thier rules against them, always, but always make sure that your child(ren) dont suffer because of the fight you are having with your ex, check and make sure for your child(ren)s sake.

kelloggs36

It depends on what is on your tax return - as the inland revenue have different allowances to the CSA - so she could appeal and depending on what is on your expenses, you MAY find that it increases.

pd001

Found_true_love wrote: »

Thank you pd001, the story carries on and if your lucky or you want me to I can tell you all the strokes my ex tried to pull with money and contact, it contains everything a film should have, money, jealousy, hatred, envy, sex, arrests, criminal proceedings, drugs (lots of paracetamol) and rock and roll and I think that because I am dealing with a person who gets angry she makes mistakes that I can capitalise on.

The bottom line is that I pay an assesed amount of maintenance, and my son gets to see his daddy more often than if I had just let the system steamroller me.

I love my son and we share great times together and long (and more) may it continue.

Learn the CSA rules, learn thier motives, learn the loopholes and use thier rules against them, always, but always make sure that your child(ren) dont suffer because of the fight you are having with your ex, check and make sure for your child(ren)s sake.

Wholeheartedly agree here! :T

Found_true_love

kelloggs36 wrote: »

It depends on what is on your tax return - as the inland revenue have different allowances to the CSA - so she could appeal and depending on what is on your expenses, you MAY find that it increases.

Not expenses Kellogs allowable business deductions against gross profits to work out a self assesed tax return that has to stand up against scrutiny if the tax man asks to see the books.

So what you are saying is that the CSA are acting as a law unto themselves as to what they allow against business expenses and what the inland revenue do? So I would have to produce my books for them to determine if my expenses are allowable in thier eyes?

I think not on your nelly will they get a look at them they can see my tax return and thats it!

marksoton

Found_true_love wrote: »

Not expenses Kellogs allowable business deductions against gross profits to work out a self assesed tax return that has to stand up against scrutiny if the tax man asks to see the books.

So what you are saying is that the CSA are acting as a law unto themselves as to what they allow against business expenses and what the inland revenue do? So I would have to produce my books for them to determine if my expenses are allowable in thier eyes?

I think not on your nelly will they get a look at them they can see my tax return and thats it!

Kelloggs is quite right. HMRC and the CSA work to two very different agendas. What the tax man will allow the CSA may not. If an appeal is brought that is worth bearing in mind. Refusal to supply information can result in a much worse assessment being levied. There is no point in digging your heels in.

kelloggs36

It is not a matter of the CSA acting within a law unto themselves as it is clearly written in the legislation what is allowed and what is not allowed
and they are at present, different. For example, if you have a vehicle or machinary for which you can claim a depreciation reduction from the inland revenue, this figure must be added back on as the CSA legislation does not allow for this. Most are the same, but there are a few differences.