Child Support and Bonus Payments, Ltd Companies, etc

Comedy

Ok, just a quick few questions. I'd give the background but it not necessary, if anyone thinks different ill happily fill you all in..

1, If i am contracting at an hourly rate doing 7 hours a day do i need to declare overtime to the CSA each week or will they just know?

2, If I set up a a Limited Company, pay myself a salary and an annual dividend is the dividend going to be subject to the CSA?

3, Finally if I'm working directly for an employer and i get an annual bonus is that subject to the CSA and again do i have to declare it or will they just know?


That's all right now. I know it seems from the questions that I'm looking for ways out of pay what i have to but I'm not. I'm curious in parts and in others I'm trying to balance my own, sometimes volatile, finances. Happy to speak about it all if anyone wants to know but I'd rather just have the answers and maybe ask some more questions

Thanks!

kelloggs36

if you are asked information, you must disclose it - forgetting to mention it means you could be prosecuted.

Bonuses will be subject to CSA, dividends could be depending on how old your case is, and if your ex decides to take it to appeal.

Comedy

So theoretically i have to tell the CSA my hours every week? What a pain.

Sucks also about bonus payments but I guess these are the things you have to live with...

AnxiousMum

Comedy - if you were living in the same household as your children, your children would presumably benefit from the additional bonus money etc. So when you are still financially responsible for supporting them, it would only be fair to the children that they would still benefit in the same way as if both parents were still together and you were living together as a family.

Call it overtime, bonus money, dividends - it's all income, and therefore subject to CSA. I don't know of too many parents that would go 'wahoo - a £1000 bonus cheque - gonna go out and spend throw it all away on myself and not let my family benefit'......NRP's bonus money etc. I'm sure goes to the benefit of the children - a little extra treat here and there, a holiday etc.

bdt1

Remember if you self-employed then CSA cannot set up a DEO, if you tot up any arrears - or make-believe arrears - as often happens. But if you looking at paying yourself dividends then on CS1 I believe these are also counted in the assessment.

If you are employed and any imaginary or genuine arrears occur, then CSA can automatically get a DEO via your employer, and access up to 40% of the wage.

As for overtime, yes they state it needs to declared if in employment, but again you can request change of circumstances if overtime isn't available

Comedy

AnxiousMum - I left the background details out of the post so it didn't turn into a moral debate about the situation of my family life. I just needed some specific answers to some specific questions.

To set the record straight a little my life is very much in order, as are the lives of my children but I want to know exactly how to structure my finances for the benefit of everyone that matters..

I hope you hadn't made the assumption that because I don't live with a child of mine I'll no longer see them, buy them treats, take them on holidays or spoil them in any way when times are going good. Maybe in my own unique situation rather than just pass on money for these things I'd like to be the one going on those holidays with my kids, or like to be the one to give the treats. Or maybe like a lot of people on here, I just don't trust how the PWC would use my hard earned money... The list of reasons are endless but whatever the reason really is it's irrelevant to the question.

I would advise taking a more pragmatic approach to the questions people post here. If someone asks for advice on topic A, it's best not to assume their situation on topic B and if someone doesn't explicitly say they are trying to shirk their responsibilities then it's always possible they're not, or at least there's more to the story than you know.


Anyway, If you really want the full story you only have to ask, be it here or in a private message and I'll happily spill it all.

Comedy

bdt1 - what's a DEO?

kingfisherblue

DEO= Deduction of Earnings Order. This is where the CSA request that your employer takes the Child Maintenance from your wages before paying you the remainder.

My ex has a DEO as he avoided paying any CM for four years. He currently pays 20% of his net pay as regular CM (for two children), plus a further 20% to pay off arrears. He is on CSA2.

chriszzz

Comedy wrote: »

I hope you hadn't made the assumption that because I don't live with a child of mine I'll no longer see them, buy them treats, take them on holidays or spoil them in any way when times are going good. Maybe in my own unique situation rather than just pass on money for these things I'd like to be the one going on those holidays with my kids, or like to be the one to give the treats. Or maybe like a lot of people on here, I just don't trust how the PWC would use my hard earned money... The list of reasons are endless but whatever the reason really is it's irrelevant to the question.




Anyway, If you really want the full story you only have to ask, be it here or in a private message and I'll happily spill it all.

I think you have a point about the treats, holiday etc. I think the maintenance should be based on contracted hours and any overtime can be spent on the children on how you want to spend it on them.

CSA_Help

As a self employed contractor you can't predict what hours you are going to work neither can the CSA assume either. In that situation it would be better agreeing a figure with them then averaging out your income over the tax year but keep money aside incase of any nasty surprises. If it is CSA1 they do take dividends into account.

Dam_2

Please read and tell me your thoughts you might just be able to help. (It's a long story lol). I was a ‘played’ sperm donor with no rights and now I want to see my son and cant because CSA take all my money!

I was in a relationship with a girl who I later found out is not a nice person. She got pregnant too my 'now' 5 year old son who I have never seen or had anything to do with because of her. Now I’m paying a fortune while trying to support my newly born son and mother on one income.

We were 'apparently' in a relationship for approx 6 months when she fell pregnant to my excitement. I was 19 at the time she was 23 and as soon as she found out the baby hadn't miscarried I never seen her again. I later found out that she had left me and gone back to her ex, a long-term boyfriend who had been proven to have one less chromosomes or something in his sperm which caused miscarriages in their previous pregnancies.
I was supposed to meet her on the Friday night to go to pictures which I organised that morning with her. Later that day I tried to phone her and her phone was off so I went to her mums and much to my surprise she was not there. I asked her mum and they said that they hadn't heard from her but new she had been talking to her ex. I hung around and she never turned up.
I phoned and phoned and a couple of days later her phone was on and her ex answered. He threatened me and told me it wasn't my baby and never would be (the cheeky !!!!!!!).

5 years later I got a letter from CSA saying she claims I'm the father and they would presume I was until I prove otherwise. So I told them I wasn't on the birth certificate and someone else has happily signed it knowing he can’t have kids and that he was the father. But no good old CSA tell me that I need a DNA test. This i had done as i was left with no option, they would of presumed i was anyway and took payments straight from my work..

This !!!!! has now got with another man (one of many) and got married and now moved to RHYL, CSA don't even know what my sons name is as its different on every letter I receive.
I can’t see my son because my rights were taken away when she never turned up on that Friday and she has moved away to make it near impossible to see him. I don't know where she lives; CSA won’t give me his or her address so I can give it to a solicitor which I can’t afford anyway. They are also taking £135 a week from my wage and what I have left is nothing after my mortgage bills etc.

I want to pay for my child not her and her husband to have a better life. They have two incomes and probably benefits where I have only one income, a fianc!e and a new baby boy with no help from anyone. My newly born son brings my payments down by £10 a week.

Thanks for reading