Best option,need advice

michelle2008

There are calculators online for tax credits. I think you need to do some research and talk to your accountant.

wayne0

danboy775 wrote: »

thanks for the reply, care to elaborate on your points though, what you mean by "deprivation of income"...?

why would income support go against her?

it seems rediculous to me that she would want to accept the proposal......why?

she can keep the dividends and still take you to the csa for 15% of your income - sorry, i thought i made that clear...

she owns 20% of your company. she is entitled to 20% of the profit.

deprivation of income - it means depriving yourself of a secure income for the intention to make yourself more elegible for benefits - for example, giving up a paid job... - such as this case.

wayne0

danboy775 wrote: »

i have also agreed to settle all her debts so she has little or no outgoings

do not settle debts!!! she can still claim csa, and settling debts will not be counted towards any bill!

what is your net income? - 15% of that is what you have to give her... its simple really...

wayne0

also, CSA does not care if you can afford to live~!

its simply if you cant afford to live - find more hours etc... then pay 15% of that income too.

lots of nrps are having benefits that they recieve for their children (child tax credits) taken into account and cannot afford to live. the csa wont care. - also wrapping up the company might not work... csa can do a default calculation on you if they feel that you have deprived yourself of income to get out of CSA liability.

kevin137

It is hard to know what to do, i would take sound financial and legal advice for deciding anything, a dividend as owner or part owner would affect her right to claim any benefit as it would be seen as income, it would also affect WTC etc as well...

I would consider buying out of the company if possible, and then pay your child support as a separate bill so to speak, the simpler things are the eaiser normally, start getting mixed up and confused now with business cs etc and when things change in the future, then it could get nasty, and by change i mean, you meet someone else etc...

A clean break and staying civil is a much better idea in my mind, not saying do't support, or pay over what you legally need to do, but separate the financials from the your ex in terms of business...

wayne0

to be fair, a change is when things tend to go nasty... it was when my second child was born with new partner that ex decided to open a csa case.

a clean break is good, but then like i say... it could go against her (i didnt notice daughter was 10.. so jsa not income support)

but selling her share would effectively be giving up gainful employment too,, which somebody told me on here is a guarenteed sanction of 13 weeks before any reciept of funds...

danboy775

wayne0 wrote: »

to be fair, a change is when things tend to go nasty... it was when my second child was born with new partner that ex decided to open a csa case.

a clean break is good, but then like i say... it could go against her (i didnt notice daughter was 10.. so jsa not income support)

but selling her share would effectively be giving up gainful employment too,, which somebody told me on here is a guarenteed sanction of 13 weeks before any reciept of funds...

I dont employ her, she is a shareholder only

danboy775

wayne0 wrote: »

do not settle debts!!! she can still claim csa, and settling debts will not be counted towards any bill!

what is your net income? - 15% of that is what you have to give her... its simple really...

why not settle her debts? i'm not going to leave her paying half the money i give her out on bills that were racked up when we were together because that has an effect on my daughters welfare.
I just want to come to an arrangement that we are happy with so we can get on with raising our daughter. No CSA no courts

My only real question has not been answered yet, is child maintenance seen as income when claiming tax credits / benefits?

FBaby

The bottom line is that yes, you can OFFER her this arrangement, however, if she wants more, she CAN go to the CSA and they WILL make you pay child maintenance in addition to the dividends she is entitled to receive.

Child maintenance is discounted from claiming benefits, but dividends are not. You can't decide to name dividends child support to avoid her declaring these dividends. You can however agree between yourself that you don't have to pay maintenance (as you can't be forced) but that would be her choice and at any time she could change her mind and go to the csa.

You therefore need to agree what you both think is reasonable, but remember that whatever you agree, she will always have the option to go to the csa and claim maintenance in addition to the dividends.

Idiophreak

danboy775 wrote: »

i cant continue paying her a dividend and child support on top as i simply couldnt afford to do this.

Am I missing something? If her 20% dividend gets her 800-1,000 per month, shouldn't you be getting £3200-4,000? You can't afford to pay 15% of this?