Re: Contracting and the CSA.

Marag Dubh <marag@xxxxxxxx> wrote in
news:vqidnSpsFLcvqH7YnZ2dnUVZ8rKdnZ2d@xxxxxx:

Me wrote:
Hi I have recently been assessed by the CSA (After some considerable
delay and despite my offers to setle outside of the CSA)
Now, when I look at how much they want to take, I consider it to be a
fair amount for the support of my children but unfortunately is
simply not affordable.
My plans have to change.
I'm now looking at changing my employment to contracting. I'm
planning to set up a company with my new wife as the managing
director (I said there was a considerable delay!)
As is normal with contracting, I will be paid a small wage and the
profits can be distributed in a dividend.
On to the questions:
Can the CSA, under the old rules, include share dividends for payment
calculations? How about under the new rules?
If my wife is the only shareholder, can the CSA include her wage and
share dividend under either scheme?
Currently, I have been assessed under the old rules - I assume _I_
cannot request to be assessed under the new rules?

Many thanks,

Me.


Forming a limited company is not a complex area, but one open for
fabulous tax and benefit planning opportunities. Set it up right at
the beginning and get a reduction in your CSA assessments and WFTC as
well!

The bottom line is that you will be no worse off and with some
forethought, a hell of a lot better off.

A word of caution: departure rules might apply if you take the p*ss.

Marag



Thanks for the encouraging words. It looks as though I'm headed in the
right direction. I've been reading the FAQ and from what I've seen this
is probably the best way forward (and perhaps even for S660?). I was
seeking some clarification as to wether my assumptions/ analysis is
correct.

Which of the departures did you think I may fall foul of? Diverted
income? Lifestyle inconsistent with income?

Me.
.