Is it worth opening case for a self employed nrp

lilyloo17

My previous case was with the Csa not cms so a few years back.

I've taken her on 2 holidays this year all funded by me and my husband - he was due to give me some child support before we left he said he couldn't afford. So I asked if he could instead give her some pocket money , he gave her £20 holidays spends. He wouldn't by her clothes and I don't think she'd want him to either - as she is 11 she's very fussy aboutbwhatbshe wears and wouldn't want her dad to choose her stuff ! To be honest he's not the type to take her clothes shopping
He is self employed but works for the same company he worked for on an employed basis, he quit then still works for same firm as an electrician and self employed basis so assume he just bills them for his hours - I think he did this to avoid the doe.
His problem is he gets paid fortnightly and blows it all in the pub so it's all gone before I see it !
I assume with cms they have no powers to get him to pay (like the doe)?

MataNui

eve31 wrote: »

I think I have read that CMS can take into account taxable benefits from the P11D form, as tax is paid on fuel and car benefits from a limited company, this is classed as part of salary too.

In addition if a sole director of ltd company pays themselves via dividend from the company this is taken into account in assessment only through a variation - it is classed as unearned income and paid after corporation tax has been paid on company profits. There are so many ways around it though, employ family member/partner as co director and pay it to them instead. Paying a partner a salary as company secretary.

Very few people choose a company car as tax is payable and it frequently isnt worth it. Mileage claims @ 45p per mile are not taxable and are not classed as a benefit and depending on the miles done can make the poor salary livable. I used to claim between £150 and £200 per week in Mileage (for a limited period) but obviously it depends on what you do. Not everyone would be able to claim that much and probably over the long run i didnt make much (tires etc are very expensive).

Yes divs can be used but under the original scheme at least has to be via a variation and that has to be requested by the PWC.

Alternatively as i mentioned you can live comfortably with low salary and expenses with very minimum divs. keeping you under the radar (perfectly legally) retaining profits in the company until the CSA liability ends. Then you can take higher divs or close the company and take a big holiday.

This is why i said its not worth it if the NRP has a ltd company. CSA have very few powers in this case and wont want to take on a fight they know they wont win.