CSA hit me hard because of business expenses

March 1, 2016

Last year, I received a letter from the CSA saying my case had been reviewed and I need to start paying 300+ per month.

I was kind if astounded as the calculated I was earning 600 per week or something.  I run my own limited company and more often than not, I was paying business expenses personally – then reimbursing myself at the end of the month.  It kept things easy for me in managing the company account.  However when filing my P11d form I put down honestly what personal expenses I had reimbursed.

The CSA then took a figure from HMRC – bearing in mind that these expenses are not actually earnings and added that to my salary and dividends.

I countlessly tried to explain and basically was told – its the figure from HMRC, its correct, you owe.  Naturally I appealed, and it was about to go to tribunal but their argument was that how can I afford to pay 30000 in expenses (before anyone jumps down my throat, I travel extensively for my work so airfares and hotels wrack up the expenses)

In short – anyone going down the limited company route – make sure any expenses are paid through the company…personally paying then reimbursing to the CSA is classed as earnings and they will hit you for it.