Looking to go self employed

jayjayuk

Hi all.

I am currently on CSA2 and I am looking to go self employed, to set up my own business, However I still currently work for a company at the moment as an employee.

Once I go to the HMRC and register as self employed and setup the business will the CSA need to do a re assesment as I will need to put money into the business first and it would operate at a loss? so in essance I would prob not be taking a wage?

Fission

So what would you be living on?

FBaby

So how are you going to support your family?

justontime

My husband (CSA 1) went self employed a year ago. He knew it would be a number of months to establish cash flow so he had saved what he could to ensure that he could still pay child support and he borrowed money to establish the business. He notified CSA straight away and provided as much evidence as he could (he didn't have all the evidence that they asked for, but he rang them and discussed it and they accepted what he had). The problem that he had was that he ended up with a nil assessment which is exactly what he wanted to avoid because his children still need to be supported. CSA couldn't do much to help, he was not allowed to pay at his old assessment until he established a cash flow, but thankfully it only took a few months to get things back on track and he did everything he could to minimise disruption to the PWC.

In your situation you should inform CSA that you are starting a business and you expect to run at a loss in the first few months. I would guess that it will not change your CSA assessment as you will still be working in your present employment as well. My husband didn't wait fro CSA to contact him re changes to his income, he notified them every time there was a change. I don't know how long they would have left him on a nil assessment if he hadn't contacted them.

Good luck with your new venture.

Crellow4

If you are content with your current liability, there is no requirement to notify CSA. All that will happen is a nil liability and an unhappy PWC!

HappyMJ

You are both much better off coming to a private agreement. No profit means no payment is due....but as has been said a very unhappy PWC. Try offering £30 a week privately and then review it after 1 year. If you can afford more then offer more.

Gigglepig

I agree with justontime and happy. Before making the decision to start a business i would consider how the lack of a fixed income may impact my child/children, whether or not I was living with the other parent. If it might cause issues and I did not have the savings set aside to provide a maintenance payment, I would consider waiting a couple of years, or if I could work part time along side the business to have a more certain income.

jacklink

brilliant for you that you have ideas and imagination to be able to go self-employed, go for it. in this day and age making a wage to live on is hard enough. if possible have a word with pwc and inform him/her what your going to do and ask him/her to persevere for a while until you build up your business and income.

if your not able to come to reasonable agreement with pwc go for it anyway, its your life, i think you will be assessed as nil income for quite a while and it will be a struggle, your kids will still be ok as the state will provide (before you all slate i work hard and pay my taxes but dont mind paying taxes to help for those who want to better themselves).

at the end of the day the kids will be ok, they arnt going to starve and you never no you might be the next Richard Branson of your area in work, p.s. dont forget me if you are

mania112

Presumably you are becoming self-employed to improve your income?

Therefore if you believe that to be the case it's a good thing. You might not be able to pay as much to the CSA now, but long-term you will pay more.

FBaby

ask him/her to persevere for a while until you build up your business and income.

if your not able to come to reasonable agreement with pwc go for it anyway, its your life,

Reading recent posts is quite despairing this morning...

Asking the pwc to persevere.... I wonder whether you would say the same thing if the pwc was to ask the nrp to pay twice the amount he's been paying because she is going on maternity leave and will see her income dropped by half...he could then 'persevere' until she goes back to work...I can really see this going down well....

As to say to go for it because it is 'his life'....once you become a parent, it is not 'your' life any longer, it is your families' life, ie. you stop being selfish and make decision that suits you if it is at the detriment of your children.