CSA and second job

Marisco

McKneff wrote: »

Using the same yardstick, why cant the OP be happy with 85% of his second job. See what I mean.

But the only reason he'll be taking another job is to make up what he loses in order (presumably) to make his own ends meet! If he could manage on what he had left, he wouldn't need to take another job would he? If he works full time, then his potential for doing many hours are limited, so why shouldn't he be allowed to keep 100% of the extra?

It might possibly be only the equivalent of what he pays CSA anyway. He is still paying what he should to the CSA, but a bit extra might just make his life a little easier. I can't understand why, if someone is paying their dues, (so we are not talking about the deadbeats here) that anyone should object to him keeping the extra,. he is entitled to a life as well!

Marisco

kelloggs36 wrote: »

CSA don't take a cut at all - it all goes to the ex partner. He still gets to keep 85% of the net earnings though, so he is still better off from working the extra job.

That's just a phrase, I think everyone knows what is meant by it.

TBH if that was me I'd do the job on the QT and keep my head down so no one would know, easier said than done I know, especially if you live in the same town. But I'd certainly give it a go!!

Dissillusioned

Another issue,one I am thinking of doing,is getting a part time job,and then going self employed with a business idea I have

(note to militants and haters-this is NOT a bid to reduce CSA liability,I have wanted to do this for a while,and if it takes off I will do it full time and obviously then be reasessed at a new level,and pay that rate,which is fine by me)

So my question is,I will pay my dues on my part time job,do I have to inform the CSA of my self employed earning,and if i do,which is fine,how do they work it out given that there may be little or no work till it builds,and even then,how do they work out a regular payment if you have a variable income week to week ??

Again,im not trying to avoid,but if anyone with knowledge can answer all my points id be grateful ;-)

nicky3

honeyloop answered the question, you are not obliged to tell the CSA, but if the information comes to their attention, you must admit it....or otherwise put... if the PWC knows about it and wants a piece, the CSA will act on the PWC's behalf and chin ya......if the PWC does not know/want a piece, you are at liberty to 'knock yersel oot'

as for the self employed question, yes you have to inform the CSA of your earnings....how they work it out is based on how much money you earn.

Dissillusioned

Nicky3,cheers,I know they work it out based on what you earn ;-) What I mean is,thats easy done if you earn say £200 a week,every week.No problem.But it is a lot harder to work out surely if WK 1 earnings are nil,WK 2 is X,WK 3 is XX,WK 4 is XXX,WK 5 maybe nil etc etc etc.How do you/they work out what to pay then and when is it paid ? Thanks for your help folks

HoneyNutLoop

They will want to see your first three months worth of profit and loss accounts, with your supporting receipts, invoices etc as evidence - all the stuff you're legally required to keep for tax purposes in case HMRC decide they want to audit your accounts, plus a tax computation. They will then work out your net taxable profits for your first quarter and estimate the tax and NI you would pay based on that. This will then be used to determine your weekly income to calculate your maintenance. Your maintenance will not fluctuate each week with your earnings, it will be a fixed amount based on the average. As with all your other bills, you will be expected to budget from the weeks your earn more to cover your costs in the weeks you earn less.

Dissillusioned

Honeynutloop,thankyou for your replys.So after 3 months I would inform them and say here are my accounts for 3 months then,and go from there ?

I suppose they have to work it out some way,but what if you have a reasonable 3 months,then everything dips for the rest of the year,surely you will be getting charged (for CSA) for money your not earning ??

HoneyNutLoop

The thing to bare in mind, is that your payments will only be changed from the date the CSA is told. So, if you delay telling them for 3 months, you will be expected to continue paying at your current rate for that time. If you tell them when you start, even though they then have to wait three months for the evidence, they can then backdate the new payments to when they were first told.

By it's very nature, self-employed earnings fluctuate, whether or not it's a new business. If the first 3 months ends up not being reflective, tell them and submit your up to date profit and loss accounts. Once you've been trading for a year and started submitting self-assessment tax returns, they will normally only agree to review your payments once a year, when your new accounts are filed and accepted by HMRC. They very rarely accept a request to review self-employed income part way through a year once a business is up and running. Fluctuations are part and parcel of that type of work and should be reflected in the average produced from the years income, unless there are very exceptional circumstances, like you start claiming benefits part way through the year.

PreludeForTimeFeelers

If you don't tell them about a second job then you run the risk of the PWC telling them and it not being acted upon - for example if the PWC notified them a week after you started, but the reassessment fell by the wayside and it took them a year to do then you would have automatically accrued a year's arrears and if your secondary income had dropped after a few months then that wouldn't be taken into account, your income at the time of the reassessment request would have been the full income on two jobs.

pinkpig08

I would be very surprised if a PWC asked for a reassessment with the aim of increasing maintenance and then forget to chase it up for a year though?