Re: CSA and Limited Company?
Me Now
> On 15 Jul, 19:21, Rick <r...@pen-y-geulan.com> wrote:
>> On 12 Jul, 12:42, "andy c" <andy.hik...@dodo.com> wrote:
>>
>>> I have through my work a chance of becoming self employed and setting my
>>> self up as a LTD co.
>>> What differecnes will this make to my payments to the thieving barstools
>>> (other wise known as CSA?)
>> If you are carefull, you can reduce your payments, for example you get
>> as much out of the company via expences, and reduce your pay. If you
>> go to far, the tax man wacks you insted. You can also have say a
>> company car, which does not appear on your payslip, again the tax man
>> will be interested in this.
>>
>> Best to find an accountant that knows something about the CSA.
>>
>> Rick
>
> I'm doing exactly that mate.
> All that they are allowed to touch is your OWN taxable income, not
> your companies and NOT any tax free allowances or bonuses that you
> receive or company income.
> The way to play it is to pay yourself the minimum wage per week, this
> is taxed and you will pay your income tax and national insurance on
> this sum. Next off you are entitled to make claim to some tax free
> allowances. You can claim 40p per mile up to 10,000 miles and 20p per
> mile after that. Subsistence (meals etc..) can be claimed at a rate
> of £26 per day if you are out of your home for more than 10 hours and
> £10 per day if more than 5 hours. This is not a definitive list,
> there are several other things that you can claim. These tax free
> allowances offset your tax liability on your minimum wage income so if
> you do enough hours and travel enough miles you can essentially have a
> zero tax liability on this personal income.. therefore the CSA can't
> touch a penny of it - yet, the bastards are trying their hardest to
> change the tax laws so that they can!
>
> The rest of the company income is taxed at the company tax rate,
> currently 19% but due to rise steeply next year. You then pay yourself
> a tax-free dividend every now and then, can be anything at all up to
> the company bank account balance ;) DO NOT dip into company money
> before it's been paid to you as a dividend.
>
> There are several companies out there who offer cheap and reliable
> services to help you do this. They make either a small fixed or
> percentage based fee (tax deductable) and sort out all of the
> paperwork for you including any tax returns etc and keep absolutely
> everything above board and perfectly legal. I personally use a
> company called Danbro but there are many many others out there who
> provide similar services... have a look at them and see what you
> think, best move I ever made financially. Tax avoidance is perfectly
> legal.. tax evasion is what puts you in jail.
>
> Flipper
I've recently registered my company. I'm on CSA1 and there are some
questions as to whether share dividends are counted for CSA calcs, I
think I saw that they are not counted under CSA2 on the CSA website, but
I'm not willing to take that chance. Hence, I have made my wife the
director and myself the secretary - I'm hoping this will help with S660,
too.
I am doing salaried work at the moment but as soon as I start getting a
few good contracts, it will be time to quit. I'll be paying myself
minimum wage and my wife enough to bump up our combined wage for
subsistence living. As the shareholder, my wife will be eligible for the
share dividends.
Interesting information about thew 10,000 mile cutoff point for the 40p
allocation - I wasn't aware of that. Also, some very useful information
about other expenses that can be claimed - thanks for that!
The net result CSA-wise and ex-wise. I suspect that the recalculation
will (hopefully) put me in the minimum liability bracket which should
force my ex to come to an agreement away from the CSA (Just like I
suggested to her two years before they finally came up with a figure)
At the moment, I am working for a very low wage. I have professional
certifications coming out of my ears but there is no way I'm going to
take a job paying 2-3 times what I currently earn just so my ex can buy
her latest boyfriend another bloody motorbike - it won't benefit my
children one iota.
</rant>
I have crossposted to uk.business.accountancy - Would anybody in (t)here
have any more knowledge as to how to maximise the income for people
setting up on their own, with respect to CSA liabilities?
VMT,
Me Now.
--
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Fletcher
etc. that way your an simply an employee and totaly out of it as far as CSA
touching the company goes. Sit on minimum wages, let your wife be the earner
and like you say your ex either accepts that or comes to some some other
private arrangement of your choosing
.
"Me Now" <Me....@No.way> wrote in message
news:469b7449$0$16357$8826...@free.teranews.com...
Me Now
Do you perceive a promlem with the CSA if I am acting as company
secretary? I don't own any shares and my wife is the director. If the CSA
can get any of the company, my wife will close it down.
Me Now.
"Fletcher" <fletch...@yahoo.co.uk> wrote in
news:LpudnegKZoj...@giganews.com:
Fletcher
are the gestapo but if your an employee they simply can't touch the company.
If you both work hard and build somthing that is good why should you be
forced to close it?
Use the system it has safe areas.
Your biggest potential problem as secretery is your accountant, csa can
demand he feed them everything he knows about the company. As an emplyee
they couldn't touch him.
"Me Now" <me....@no.way> wrote in message
news:Xns9970E9332E4E3lk...@66.150.105.47...
Me Now
contrary?
Me Now
"Fletcher" <fletch...@yahoo.co.uk> wrote in
news:LpudnegKZoj...@giganews.com:
> Couldn't you get someone else to be secretery, dad, brother, cousin,
JMC
another method that is just as rewarding but you really do have a contract
of employment with a company that the CSA, an ex or the tax man cannot
question or touch - an umbrella company.
Here's a rundown of the services provided by Danbro - the company I use...
Service fully approved by the Inland Revenue.
£1,000,000 Professional Indemnity Cover is included.
The umbrella company option provides a comprehensive and generous expense
policy.
When you don't work, you don't pay (their fee is a tax deductable expense..
£18 per week if paid weekly or £54 a month if paid monthly).
Umbrella services require no joining fee, and no termination fee.
Payslips detail Income, Expenses and deductions.
The umbrella option provides a Group Pension Scheme.
Umbrella companies enable income confirmation to support credit / mortgage
applications and income confirmation to the CSA.
Umbrella Company - How it works?
Several contractors will operate simultaneously through the same umbrella
company. You would simply swap your contract with the agency or client to a
contract of employment with our limited company.
Under the umbrella company option, we share a mutual expectation that any
contract that you take up with Danbro will be followed by subsequent
contracts in the future. If you do not agree with this expectation, then
please contact the office as soon as possible.
Your role is:
To source and decide on the contract that will best suit your needs and
skills, informing the agency/ client that you will be operating through our
umbrella company. The contract will then be made out between our limited
company and the agency/client naming you as the contractor. You will then
become an employee of our umbrella company, by signing our contract of
employment.
To submit timesheets and expenses to us by email, fax, or post.
To submit your personal claim for allowable expenses on our expenses claim
form along with supporting receipts.
"Fletcher" <fletch...@yahoo.co.uk> wrote in message
news:XfmdnR5r0_4...@giganews.com...
Simon
Someone is having a good lauhat your expense. To claim that these scemes
are approved is the biggst joke of all. Its telling that the people who
claim this dont even know that the Inland Revenue ceased to exist over
two years ago. Umbrella Companies are considered an avoidance device and
fall very short of the f word.
If the individual who claims this is not the case would care to call at
my Office, he might just learn to what extent these schemes are "Approved".
Paying yourself NMW is still giving the CSA something to attach a debt
to. Expenses claimed still have to satisfy S336, S337 and S338 ITEPA
2003. Dividends can only be voted on profits and then are not tax free
as he has claimed. You still have to be an SA taxpayer so you only delay
the date you pay the tax.
Of course, anyone who is planning to do anything they can to avoid
taking responsibility as a parent probably has the morals of a skunk and
so I am waisting my breath.
Me Now
Whilst I cannot speak for JMC, I know the vast majority of posters in
ugac are not trying to avoid taking responsibilty for ther children,
quite the opposite. They are trying to prevent the CSA from removing
income from themselves, which most, myself included, would have spent on
our children in the first place. Not all of this money goes to the PWC
(Parent With Care), the CSA regularly messes up payments - the system is
broken. You seem to be suggesting that the only person who knows how to
spend money on our children is the PWC, when all too often that is
obviously not the case.
Going back to the main topic of the post, I will not be operating under
an umbrella company, as I said, I have formed a limited company and I
will be operating in that company name. Thanks for the warning, though!
Me Now.
Original newsgroup restored.