LTD COMPANY QUESTION


About Us Forums Child Support Agency LTD COMPANY QUESTION

This topic contains 2 replies, has 3 voices, and was last updated by  Michael – CSAhell.com staff 2 years, 4 months ago.

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  • #44300

    mikesw15
    Participant

    Hi I’m thinking about starting a limited company but wanted to know how CSA work out how much I will be paying, Do i pay myself a wage then tell CSA how much I’m paying myself ?

    #74250

    metalman750
    Participant

    This is something that I would also like more information on. looking at going self employed and don’t know wether to do that or go ltd.

    #79998

    With a Limited company you pay yourself a wage (weekly or monthly) and pay PAYE, Nation Insurance etc on that. The CSA will make its calculation based on the money you pay yourself – not any money your company makes, as your company is nothing to do with them.

    Most company directors will pay themselves what is known as a director’s salary, around £8,000 per year – and the CSA will take its cut of that. They then also pay themselves Dividends as and when they are able to. They do this because it’s more tax efficient as you only pay around 10% tax on dividends through your self-assessment at the end of the year.

    If this means nothing to you, speak to an accountant. You’ll need their help.

    The CSA does class dividends as income IF you are a director of the company, because – as a director – you control the payment of dividends so they’re classed as income. If you’re not a director, then dividends are not included in the CSA’s calculation as they’re not income – as in you cannot control when they’re paid.

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