Child Support and Bonus Payments, Ltd Companies, etc

AnxiousMum

Dam - to get a better response from others, you might want to start your own thread. Sounds like you've been screwed over big time, and quite likely, being screwed over again on the financial end of it. Hopefully if you start your own thread (and just copy and paste the above post into it) then someone might be along with some useful advice for you.

Blonde_Bint

Same for me i'm afraid, as Anxiousmum so succinctly puts it Dammn. Hope it works out for you. But as to what you can do not many options open to you and the few that are will probably cost you money you dont have.

so sorry for your situation.

RedSky

Dam wrote: »

Please read and tell me your thoughts you might just be able to help.

You are stuffed. The law clearly states you are a parent for the financial matters but not a parent for the responsibility matters. All you can do is lobby your MP and support the various action groups in the hope that the law will be changed one day.

Comedy

Dam, I feel for your situation unfortunately from being in a similar one I've learned there's not much you can do other than suck up and pay. If you want to talk more about it all just message me. I've found that it's nice sometimes to talk it out with someone who doesn't know you.

Miaspa_2010

Dam, feel your pain when I was first assessed on CSA1 in 2001 it worked out at £320 pounds per month, when my net income per month was £870. The CSA left off the mortgage when working out out my assessment. Took me 18 months to sort that out, why I am still paying off arrears.

My attitude to contact with my daughter was I wanted to see her at any cost (my solicitor did very well out of me), yeah 9 years later I still have the CSA arrears and a credit rating that even the most unscrupulous loan shark wouldn't touch.

On the bright side I see my daughter every weekend but it cost me, money is not the be all and end all of everything, seeing my now nine year old is and thats what its all about for me.

pd001

Comedy wrote: »

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!

Speedster...this one is for you I would think....

CSA_Help

Comedy here is some quick answers. Are you subject to CSA1 (PRE 2003) or CSA2 (2003 -)

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?

No the CSA wouldn't know but when assessing they take 5 weeks wage slips or 2 monthly wage slips. Either parent can ask fro a reassessment at any time so you would need to carefully plan your overtime

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?

Yes and no .If you pay yourself a salary and then pay yourself a dividend at the end of the year then that would be subject as an income calculation (CSA1) . All this depends who the director of the company is and the the majority shareholder is

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?

If you are full time it depends when the bonus is paid and the payment is on one of the pay-slips submitted for assessment. If the CSA see that payment they will average it out over the 5 weekly or 2 monthly wage slips (they should) but may calculate it as part of the monthly wage which they tried with me at one time.




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![/QUOTE]

Comedy

CSA_Help:

Thanks for the answers, all very helpful and concise

In follow up I will be on CSA2.

I've told the agency how much my hourly wage will be, I think it would be best for me to not claim my overtime for a few weeks and have some pay silos not showing it.. As much as people think this is wrong you should all remember that overtime is not guaranteed and if the CSA assess me on a week i did a lot then for the next few weeks I do none I won't have the money to support myself.

I'm still toting with the idea of a limited company or umbrella company to offset some of my expenses against my income. I will be earning a modest wage but will be working a long way from home so will have either massive commute costs or a second rent to factor in. If the CSA took these into account I wouldn't need to do this.

And finally for bonus payments, I've been over my justification for this already but it looks like if I get one it might be received as share options. I know from being paid in options in the past that if i hold them for 3 years i won't pay capital gains (not sure if this has changed) but also they dont fall under taxable income.

speedster

if you are working away a lot and renting a second home/room, then LTD would defo be the way forward.

that way you can offset the rent as a business expense, along with the travelling costs etc.

there are other pros and factors to being LTD, depending on your circs etc.

PM me if you need any info about it.

PlayingHardball

chriszzz wrote: »

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.

Hi Chriszzz, I can't be in total agreement on the overtime/bonus issue, simply because we have to remember that the NRP isn't handing over all his or her overtime, only a very small percentage, in this case there is one child, so only 15% goes to PWC for child.

NRP keeps 85% of salary and any bonus/overtime - if a NRP chooses to go on holiday with the child, the child wins - and with any luck, PWC will also be able to do something extra for the child as well.

If both NRP and PWC have a little more money, then surely the little ones wins.

Sorry Comedy, I don't know the answers to your op, but it sounds like you've been given the knowledge you needed.

Best of luck