Any body no about CSA rules on self employed people
Discussion
I went self employed just over a year ago got my accountant to sort out my tax return, sent a copy to the csa they then sent me a letter to say how much they wanted, they had taken out the depresiation? i thought the figure should be what you pay tax on profit! they added profit and depresiation together is this right? i had put the money in in the first place so why should i pay csa on that hope this is clear many thanks !
http://www.csahell.com/new-csa-rules-2011-1871.htm...
CSA said:
First, percentages applied to the paying party’s income under CMES above £800 a week are lower. The paying party will now pay 12% of gross income up to £800 a week in respect of one child; 16% for two, and 19% for three or more children. (The current CSA rates of 15% for one child; 20% for two, and 25% for three children are applied to the whole of the paying party’s net income below £2,000 a week.) Income above £800 a week gross (the ceiling is £3,000 a week) will be subject to the above percentages for the first £800 with lower percentages of nine per cent for one child; 12% for two, and 15% for three or more children applied to the remainder.
You have to pay a % on your net income.Oakey said:
That's all well and good but the CSA usually just take about 25% of your wage which can be a significant hit for some people.
I'd consider that I was doing very well indeed if having clothed, fed, housed and generally subsidised my children I had anywhere near 75% of my net wage left.Correct, but what other system would you suggest? It may perhaps only be the feckless or unlucky who end up dealing with the CSA anyway. Sensible couples, when splitting up, make their own agreement for child support, and do not involve the CSA at all. I appreciate that some people may not be able to agree, because one party is unreasonable, but often both are. I pay about 15% of my gross earnings to my ex wife for the support of our daughter when she is with her, but the total figure is greater, as the child is, I am glad to say, with me for three nights each week and on a few holidays each year, and I also pay her school fees. No CSA required. I am self employed, but the idea that I would use my accountant to try and reduce the sum that I pay for the benefit of my daughter, as one poster above suggested that the OP should do, is , I think, deeply cheesy.
pk500 said:
I used to pay her by cheque every month ! She decided to use the bank details and set up loads of direct debits I ended up with loads of junk turning up . Over £1k a months worth took months to sort it out ! that's how csa got involved !
And that is because the direct debit scheme has been changed so you can do it over the phone I guess.Money paid to CSA doesn't always go to the child and its parent. I know of one young lady who is on benefits, she gets none of the money paid in CSA, because of the benefits.
daz3210 said:
Money paid to CSA doesn't always go to the child and its parent. I know of one young lady who is on benefits, she gets none of the money paid in CSA, because of the benefits.
This was indeed the original purpose of the CSA. It was never established to benefit children, it was establised to benefit the Exchequer.Resident parents keep both benefits and child maintenance since April 2010 I believe though.
Now the tax payer just picks up the £500M pa running costs .....
PurpleMoonlight said:
This was indeed the original purpose of the CSA. It was never established to benefit children, it was establised to benefit the Exchequer.
Resident parents keep both benefits and child maintenance since April 2010 I believe though.
Now the tax payer just picks up the £500M pa running costs .....
But have the benefits changed? i.e. reduced in what is paid to each resident parent?Resident parents keep both benefits and child maintenance since April 2010 I believe though.
Now the tax payer just picks up the £500M pa running costs .....
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