Limited Company and Child Maintenance Service?

[markthomas1]

Evening,

New guy here

I'm due to start operating as a Ltd Company early next year and have a few queries regarding how his will 'work' alongside the Child Maintenance Service payments I've been making as a PAYE employee over the previous 18 months. So far my liability has been assessed by a salary figure provided by HMRC and everything has been smooth and problem free. Given I'm due to 'jump in' soon I've been doing some reading and the following queries have arisen if you guys could kindly assist? I have asked my Accountant but he doesn't appear to be to up on how the CMS works. I've also tried the CMS but the 2 people I spoke to both admitted they knew 'nothing' about Ltds and couldn't really help!

1. I realise the CMS will only require, by law, details of my salary once I'm Ltd. However, the ex can then also request my dividends be taken into account if she so wishes. Am I best giving the CMS the forecasted dividend information 'up front' or am I best saying nothing unless / until they request it?

2 If they do request dividend information how do I 'prove' what my dividend is? (I intend to take a monthly figure roughly the same each month).

3. Given my CMS Annual Review is due in March 2017, there won't be much information regarding my company's accounts available. Where will the CMS obtain the information from on which to base their calculations? Is it simply a case of my Accountant writing to them and saying 'Mr Thomas' salary is xxx' and providing wage slips? is there more to it than this?

4. If I retain money in my business can the CMS take this into account and, in effect, 'take it off me' as part of their calculations?

5. If another shareholder is paid a monthly dividend is this any of the CMS' business?

Thanks in advance. Happy to receive responses on here or PMs if you prefer.

Mark

[gables]

I just provided payslips from the payroll software I use.

[northernladuk]

Be careful with the other shareholder. It should only be your spouse. It's complicated but just be wary and make sure you've spoken to your accountant about it.

Also make sure you work your warchest first rather than paying yourself everything you can. You need some money behind you that's going to last 6+months just in case you get binned and don't find anything. It should be your main priority so only take what you need to live and build it up first. Short term pain for a rainy daily which is quite likey to hit.

[markthomas1]

Be careful with the other shareholder. It should only be your spouse. It's complicated but just be wary and make sure you've spoken to your accountant about it.

Also make sure you work your warchest first rather than paying yourself everything you can. You need some money behind you that's going to last 6+months just in case you get binned and don't find anything. It should be your main priority so only take what you need to live and build it up first. Short term pain for a rainy daily which is quite likey to hit.

Thanks. Why would the shareholder need to only be a spouse? I'm not married and the shareholder is a relative. Why would this be of relevance to the CMS please?

[markthomas1]

I just provided payslips from the payroll software I use.

Hi thanks for your response. I take it your payslip only displays your salary and no mention of dividends?

Did CMS accept this wihout querying your dividends? how quickly did they re-assess your liability once thy'd received your payslips?

[northernladuk]

Hi thanks for your response. I take it your payslip only displays your salary and no mention of dividends?

I'd suggest you spend more time understanding how your company works than trying to avoid your maintenance obligations first.

[TheCyclingProgrammer]

Thanks. Why would the shareholder need to only be a spouse? I'm not married and the shareholder is a relative. Why would this be of relevance to the CMS please?

Why are you giving away a share of your company and any dividends you declare? That's very generous of you. Are you forming some kind of business partnership?

[northernladuk]

Get yourself an accountant and go through it all with them. This looks like its going to turn in to a car crash for you and CMS will be the least of your worries.

[SueEllen]

Thanks. Why would the shareholder need to only be a spouse? I'm not married and the shareholder is a relative. Why would this be of relevance to the CMS please?

So this shareholder who is a relative also contracts as well through your company?

I've contracted alongside siblings and father/daughter contractor companies. Anything else simply looks dodgy.

[radish2008]

I'd suggest you spend more time understanding how your company works than trying to avoid your maintenance obligations first.

This.