How does csa assess a newly self employed person?

vonsworld

Hello

I'm thinking about becoming self employed because it's not been easy to find a regular job.

However I don't know how much I'm going to earn in the first year, and of course I have no previous years of self employment to use as a guide.

In such circumstances how will the CSA/CMS calculate my payments in the first year, do I just provide them with a best guess estimate of my income?

Also in the second year of self employment, will there be an adjustment if I have paid too much or too little in the first year?

Thanks for your advice

DUTR

vonsworld wrote: »

Hello

I'm thinking about becoming self employed because it's not been easy to find a regular job.

However I don't know how much I'm going to earn in the first year, and of course I have no previous years of self employment to use as a guide.

In such circumstances how will the CSA/CMS calculate my payments in the first year, do I just provide them with a best guess estimate of my income?

Also in the second year of self employment, will there be an adjustment if I have paid too much or too little in the first year?

Thanks for your advice

Not sure about CMS, but CSA there was a standard £30pw for 1 child until the NRP could show some statement.
I would imagine after 3 months there is some regular income to make an assesment with.
If the amount varies by 25% then there maybe an adjustment made. (CMS)

justontime

When my husband started his Limited Company (he was on CSA 1) he was told to pay at the old rate for 3 months then it was reassessed. The problem was that the first three months often don't generate income or a wage so it results in a nil or very low assessment. In my husbands case he had planned for this in advance and wanted to keep paying but CSA have no mechanism to allow this. He then had to fight very hard to get a reassessment a couple of months later when he could demonstrate an income and a salary. Working for your own limited company isn't technically being self employed, but it's what a lot of people mean when they use the term self employed so I thought it would be worth mentioning it.

If at all possible explain the situation to the PWC in advance and make some sort of contingency plan. I can understand why a PWC would be very upset to be faced with a nil assessment and a then to hear that there has been a three month overpayment as well! In my husband's case the PWC now gets more than before under a private agreement and the interim shortfall was resolved privately but the system seemed unfair to the PWC because the child still needed support while the business was being set up.