Advice for Self Employed NRP working for NRPP business

fearlessfred

Hi There. Hopefully this won't have been answered previously, apologies if I have missed a thread that covers it.

I am new to this CSA lark as my ex has just contacted them to make a claim, despite promising at the time of accepting my share of the house etc that she wouldn't make a claim through them. (Have checked with a lawyer and I have no comeback on the house - lesson learned - NEVER EVER give your ex more than what she is entitled to under law as they won't necessarily respect agreements down the tracks).

My circumstances are not straightforward as I had a failed business, and was homeless, making a living doing oddjobs etc and not a burden on the state. I met a really lovely woman who took me in and fed me and kept a roof over my head. We became lovers and we stay together often however sometimes I sleep away, often sleeping rough or in a vehicle, as we do have some arguments etc and need our own space sometimes. My ex wife thinks we cohabit constantly). My girlfriend even started up a business in the same field as my old one. As she was putting all the money in the limited company is in her name and she is the sole director and shareholder and has been since the company was incorporated.

I now work long hours for this start-up company, which is yet to become profitable, and bill it as a self-employed contractor a small amount per month for my work - enough to keep me in beer and pay my girlfriend something towards my keep after deducting reasonable expenses in running my own business (net is probably £70-100 per week and varies according to how the business has done that month, what I have done for the business in terms of repairs etc as it is a seasonal retail business). If I billed any more the business would become insolvent and have to close, although it is gradually building in turnover and we can see that in a year or two the business will be profitable. I also do odd jobs for other people. All my pay is really cash in hand as until the other week I didn't have a working bank account. My girlfriend works full-time as a secretary but on the side does have a lot of management and clerical input into the company as well as frequently getting her hands dirty with the day-to-day stuff on weekends.

My worries are that the CSA will look upon the business that my girlfriend started up as really being mine and using my girlfriend as a cover (it genuinely isn't and she is not - she really put all the money in and if we split up she would keep the title to everything as she is legally entitled to do under company law).

Also I am worried that the CSA might start delving into my girlfriends circumstances (she works as a secretary so has a small monthly income but has a wealthy family and plenty of money behind her) even though my kids are nothing to do with her.

The ex wife is being very difficult and seems to be implying that she can make things happen around the business and also that I am obviously working long hours and so must be hiding pots of money (I wish - if I had money i would be paying her voluntarily and used to pay her £2000 a month when I had money with no CSA involvement necessary), and in addition that she has proof of my income (for example) last years holiday to turkey in a rented villa as my girlfriend obviously couldn't afford it on her secretary salary - thats correct but she just paid for it out of her savings which the ex wife has no idea about and I have no wish to drag my girlfriend into the maelstrom that seems to be what happens when the CSA start getting involved.

Any similar experiences from people who have already been run through this mill etc would be greatly appreciated.

Apologies for the rather long-winded thread.

Cheers

wayne0

csa cant look at your girlfriends finances...

what is your registered address? is it the same as your girlfriends? if you sleep there, then this would be considered your main residence (and as such you and your gf a couple, much the same as if you were married)

im not too sure about the business, but: when you fill in your tax return, are you classed as a partner? if so, its 50/50 of the business profits...

if your self employed is under "Joe bloggs" and your registered address is the same as the business, they could argue the same... but im not sure...

the only thing the csa could look into is the business, not your g/fs other circumstances... although if she has kids, then declare them as you will get a deduction in your "net income" but her CHILD TAX CREDS / WTC could be taken into account ...

also, if they dont ask about tax credits, you dont have to tell them but if they do ask, you legally have to be honest...


with the house: is it paid off? was the settlement on the house before 2003? was it in court - i think these do affect CSA payments too! but you have to put in a variation for them to be accounted for...

hopefully somebody else can come along to give you further info... im not too "clever" on the whole self employed and CSA...

fearlessfred

Thanks Wayne0

Some of my stuff goes to my girlfriends address and some to a different address (which is actually just an address that takes in peoples post for them). I am currently changing addresses on most of my stuff to this alternative address and not using my gf's address. I sleep there sometimes, same as many people with a girlfriend I would imagine, but not all the time. If its going to mess things up I am tempted just to move away from there so that my gf's not involved as she does get some WTC and other stuff. Doesn't seem fair to drag her into it and at the end of the day penalise her for my family stuff.

Business is fairly new and I haven't submitted a tax return yet but definitely it will be of the joe bloggs variety

wayne0

WTC is would be classed as the income of the higher earner if a joint claim... (im assuming your partners business will make a larger profit?) 50/50 if equal income, and 100% NRP if he was the higher earner. - from what i gather, you dont need to proove any statement, but its a criminal offence to lie.

is your name on the TC claim?

if not, you dont only have to be careful with CSA, but also risk fraud investigation from TCO because if they deem u as a couple then you should claim as such...