Contracting and child mainteanance

[SueEllen]

If I was doing an Outside IR35 gig, I would be an employee of my company and the contract with the clientco would be between them and my company. My company would pay me wages while the rest of the money would sit in the company's bank account.

So you would pay yourself NMW then?

[BlueSharp]

So you would pay yourself NMW then?

Would they not base it on last years self assessment and take 25% of total income declared and include divs?

[northernladuk]

If I was doing an Outside IR35 gig, I would be an employee of my company and the contract with the clientco would be between them and my company. My company would pay me wages while the rest of the money would sit in the company's bank account.

Well again you'd be wrong. You are not an employee of your company. If you are going to try and dodge your responsibilities and try pull the wool over your partner and a courts eyes would it not be a good idea to at least understand what you are.

It sits in your account until you take it out. You saying you can live on NMW until your kids are 18? Again, i find it bemusing when people twist a situation beyond common sense just to receive an outcome that suits them?

[Destiny2]

I do not want to discuss parental responsibilities and all that as there is a long story and basically I got shafted.

These are all hypothetical thoughts on my part at this juncture.
Essentially, my question is : Does CM get taken off a contractor's wage or his company's income if he is the director of that company.

[northernladuk]

I do not want to discuss parental responsibilities and all that as there is a long story and basically I got shafted.

These are all hypothetical thoughts on my part at this juncture.
Essentially, my question is : Does CM get taken off a contractor's wage or his company's income if he is the director of that company.

Company income and your income from the company can be grossly different so they can't use company income to calculate anything. Company income is is no way related to the amount available for distribution to the director.

We've already pointed out wage is only part of your income. It should be calculated on YOUR income which is wage, divis, rent and all sorts. Drop the word wage.

Your question should be

Does CM get taken off a contractor's INCOME or his company's income if he is the director of that company.

You really gotta start being a little smarter if you are gonna play these games and have a hope of making it stick. By cocking up and doing things wrong you are going to attract more attention at which point lord only knows what can happen, but it won't be pleasant for you.

[SueEllen]

Would they not base it on last years self assessment and take 25% of total income declared and include divs?

My point, which NLUK answered, is that while you are an officer of a company you are not necessarily a employee.

If you are an employee then you have to pay yourself at least NMW.

[SueEllen]

I do not want to discuss parental responsibilities and all that as there is a long story and basically I got shafted.

These are all hypothetical thoughts on my part at this juncture.
Essentially, my question is : Does CM get taken off a contractor's wage or his company's income if he is the director of that company.

I read a case a while ago about a contractor who decided to shove 40K into his pension so he could claim his personal income from his company was lower. The judge added the full 40K to his yearly income of which child maintenance was to be calculated from, as it was clear he was trying to avoid paying child maintenance.

In other words don't take the piss and use a realistic personal income.

[Gibbon]

You really gotta start being a little smarter if you are gonna play these games and have a hope of making it stick. By cocking up and doing things wrong you are going to attract more attention at which point lord only knows what can happen, but it won't be pleasant for you.

This!

Whether you got shafted or not, the only way out is the PWC doesn't claim or the kids aren't yours. I had a easy time with them not because I was the best, but because I was reasonable (Ollie Reed Gladiator paraphrase ). Once you start the tricks then you attract the furies and they will drive you mad. I've seen it so many times. A bitterness that becomes all consuming.

[Destiny2]

Of course, I will sit down with a solicitor and go through these things when the time comes.

I am unsure what I should be doing right now ... keep doing a low rate gig so that I am effectively living hand to mouth and there's not much to be taken from me. Or, should I do an Outside gig and command a 20k gross income.

[courtg9000]

Remember that the CSA if involved have a problem understanding the difference betwe3en turnover and personal income.