CSA forms when Director of business?

simpywimpy

My son has today received CSA forms and as he is a director of a small firm along with another person, he is being asked for a copy of the accounts, tax returns etc etc.

Does he legally have to give these when its not his sole business?

He only draws £100 wage because the business is still making a loss and last years accounts show a large loss. On top of this he gets disability benefit and tax credits of £50 per week.

There is only one child involved and he is the NRP.

Any help appreciated as this is completely alien to us.

Should also add that he has for the last 18 months being paying cash of £40 a week to mother of child but has no receipts.

speedster

firstly. now that the csa have made contact, stop cash payments IMMEDIATELY. arrears are building up and they wont take cash payments into consideration.

secondly, is your son a 50/50 director or is he the majority/minority shareholder?

the csa (despite what they threaten you with) are NOT entitled to company accounts at this stage. all he LEGALLY has to supply them with are details of his PAYE from the company.

RAS

Hi

The first thing he needs to do is to stop paying cash unless she gives him a receipt. Better still arrange a standing order. All payments to his ex must be recorded qand traceable.

simpywimpy

Thanks for the quick replies. I have told my son he either stops payments or he gets her to sign before handing it over.

He is a 50/50 director with one other person. We can supply his p60 for the previous year but although we did a self assess tax return, we did this online so do not have a hard copy. Will the P60 do? He has been trading since Sept 08 and has never taken more than £100 a week from the business.

simpywimpy

Is there a set amount for one child now? Child born Jan 09 and only received first contact from CSA today

RAS

For one child it is 15% of the income, so if he is only taking £100 per month (net) he is overpaying substantially, even if the £40 is on top of the £100 income.

simpywimpy

he earns £100 a week from his job and then £50 a week in working tax credit. do we include the tax credit as income or just his wage?

dmbaxt

Hi simpywimpy

are you sure that the csa have the correct information on your son? I used to work for the csa many moons ago now (so things may and probably have moved on since then!). I worked on the self-employed section where we used to ask for income/expenditure or self assessment information. We would get passed cases for people who were directors of a company - hence an employee not self employed. we used to find this out and refer the paperwork back to the PAYE teams.

these used to stem from them (csa) being told 'he works for himself' or 'he's got his own business' so he should telephone or write to them and tell them he is a director and as such PAYE and check to see if they have the right information about his circumstances.

Loopy_Girl

simpywimpy wrote: »

he earns £100 a week from his job and then £50 a week in working tax credit. do we include the tax credit as income or just his wage?

The tax credits get included as income so his income is £150pw for assessment purposes.

As he is earning under £200 however, it's not 15% it's another calculation (which I am afraid to say I cannot recall offhand but someone else will be along:o).

Get him to stop the payments now - don't even get him paying and her signing for it. I wouldn't trust the CSA to honour their own guidlines and accept it. Instead, get your son to tuck the £40 away a week as he will have arrears accuring already as another poster said. They can take some time to sort assessments out so when they finally do sort it he is not being slapped with a huge arrears bill (or if he is, he can pay it immediately)

Loopy_Girl

RAS wrote: »

For one child it is 15% of the income, so if he is only taking £100 per month (net) he is overpaying substantially, even if the £40 is on top of the £100 income.

If the NRP earns less than £200pw, the 15% deduction is not used. It is a lower one to reflect the lower wage and is on a sliding scale.

simpywimpy

It does actually have a form in it

II have recently been informed that you may be the director or shareholder of at least one company. Due to the complex variations of how directors are paid, I need to view a number of docs in order to establish your full income.

The questions are:
Confirm you are the sole director (which he isnt, there are 2)
Are you the director of any other companies (no, just his one)
For each company state salary, dividends, bonuses and commisions (he only takes a small wage)
Please supply full accounts for each company to incl profit & loss, balance sheets, notes and directors reports.
If there is a directors loan account in operation please suply a copy
Supply a copy of Directors P11 D
Send self assessment tax returns for 2009 & 2010 (we have only been asked to do one this time 2010)

Surely he would need the other directors permission to supply all these business docs?