The CSA and Dividends – how does it work?

kelloggs36

CornishBloke29 wrote: »

The OP says its old rules, so housing costs are allowed.

The OP says he mortgaged the property so it is not a biz loan. Its a mortgage.

Allowed.

If the purpose of the loan is not to secure the house, then it is NOT allowed under Child Support Law I'm afraid - if it is borrowed for the business, it will be disregarded.

kelloggs36

On the old rules, the forms specifically asks the questions about how much dividends a person received - whether they be directors or anybody else who owns shares in any company whatsoever - they are assessable under CS1 rules and will be calculated to provide a weekly income to add onto the earned income of the NRP and then assessed as normal. If a person has received any dividends and then states that they have not, then they are committing an offence under Child Support law and is subject to a criminal record and a fine of up to £1000.

kelloggs36

speedster wrote: »

wrong.

they can only ask for PAYE details as he is only a director and NOT the majority shareholder.

the OP is under NO obligation to furnish the chimps with any other details than his PAYE income. wrong - they ask about any other income including dividends and if the NRP refuses, then the NRP is committing an offence under Child Support law.

might i suggest you brush up on a bit of corporate law instead of spouting CSA propaganda at the poster.

Corporate law is irrelevant as it is under Child Support law that the information is required.

bongo33

Thanks everyone for taking the time to debate my question. I found this to be most relevant.

Fission wrote: »

47. If the purpose [of a loan or mortgage] did not relate to acquiring the home, the whole of the housing costs are ineligible for child support purposes under paragraph 4(1)(a). No further consideration is needed.

The PWC has no way of knowing what the re-mortgage is for. However to be safe, I have raised a bill for an extension on the house which is used as an office and this too attracts tax benefits as well as CSA charge relief.

As this is a mortgage renewal, it qualifies as a loan for aquiring the home because there is no other money available to buy it.

As a further provision, if the CSA chooses to disregard the loan, then we can cap maintenance by setting a limit at the current liability, then periodically introduce changes of circumstances increasing the protected income level until the liability becomes a nullity. Its up to the CSA on how far they want to go.