Is it best to go self employed or umbrella - from a CSA point of view?

[Hemingfield]

Hello,

I have recently finished my first contract successfully - yay!

As I am using an umbrella company the CSA have gotten my hourly rate off them, put it through their calculating machine and derived that I am making a gazzilion pounds a year (I wish ). The contract was five weeks over the Christmas period.

I rang them up to 'set em straight' and mentioned that I'm no longer working on the contract - which confused them and they have sent out a form asking me to bare my soul once more for their pleasure.

Am I right in thinking that they're going to do this for every contract I get? If so - is going down the self employed/accountant route any better?

I sincerely would appreciate any help on this.

Cheers,


Hem

[dude69]

Surely a limited company would be the best way to go. The money is then the company's, not yours, and you only pay yourself what you actually want to.

[Bluebird]

yes, but the money has to come out of the company eventually - and when it does the CSA want their cut - unless you leave it say 18 years ?

what I would do is establish a mean figure for a monthly takehome - say £2000 per month - let the CSA use that, and thats what you pay yourself as well - anything else leav in the co.

It'll be easier on you and the CSA - plus you'll actually be providing for your child instead of shirking your reposibilities.

[Hemingfield]

Hello again,

Thanks for the words of wisdom, I certainly appreciate them.

I'll definitely look into going down the Ltd company route. Great idea 'setting' a salary level Bluebird - like it.

It never entered my mind to 'shirk' anything - I just don't see why I should have to up my ex's pocket money (as she has a very wealthy lifestyle now) every time a bit of fortune shines on me! I have two resident children whom I would love to spend as much on.

Cheers

Hem

[ratewhore]

It'll be easier on you and the CSA - plus you'll actually be providing for your child instead of shirking your reposibilities.

I concur, also:

1) Go Ltd
2) Bite the bullet
3) Be humble

When you accept 2 and 3, you will be happier, believe me, I speak from experience.

And enjoy your children. That's the important bit...

[castoff101]

I thought that only salary was included in CSA calculations, dividends were excluded. Can anybody confirm or not?

[Sockpuppet]

It'll be easier on you and the CSA - plus you'll actually be providing for your child instead of shirking your reposibilities.

providing for your wifes shoe collection rather than being financially astute


If I ever had some little sprogs running around and the CSA got involved I'd prefer to give them the money directly or buy them what they need/want rather than give it to a potential ex that I would more than likely hate.

[Sockpuppet]

I thought that only salary was included in CSA calculations, dividends were excluded. Can anybody confirm or not?

I think the CSA wouldn't miss a trick like that.

What about all the millionaires on £1 salary and £200,000k dividends.

[castoff101]

Found this on page 43:

http://www.csa.gov.uk/en/PDF/leaflets/new/CSL303.pdf

"Net weekly income
The amount of income (usually pay or salary)left after taking off
things like income tax,National Insurance and payments into a
pension scheme.Bonuses also count as pay or salary.We don ’t
normally count dividends paid to a director of a limited company,
unless the parent with care asks us to take account of them.
We count tax credits and any money the non-resident parent ..."

[BrilloPad]

Hello,

I have recently finished my first contract successfully - yay!

As I am using an umbrella company the CSA have gotten my hourly rate off them, put it through their calculating machine and derived that I am making a gazzilion pounds a year (I wish ). The contract was five weeks over the Christmas period.

I rang them up to 'set em straight' and mentioned that I'm no longer working on the contract - which confused them and they have sent out a form asking me to bare my soul once more for their pleasure.

Am I right in thinking that they're going to do this for every contract I get? If so - is going down the self employed/accountant route any better?

I sincerely would appreciate any help on this.

Cheers,


Hem

Do you see the children? If not, why not? Is so, How often do you see them?

As the former committee activist co-ordinator for f4j I have vast amounts of experience of the CSA - but I only give it to those who I am sure are not shirking their responsibilities.

It is my experience that 90% of men do not do the best for their children and approach divorce/seperation in entirely the wrong way. Most men get the kicking they deserve from family courts/CSA/SS etcetc.

It is the children I feel sorry for.