[Michael – CSAhell.com staff]

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.

[Michael – CSAhell.com staff]

I have to confess Tracey I don’t actually know the answer to that one as it’s a situation I’ve never come across. I hope you find an answer, and do let us know if and when you do.

You could post the same question in our Facebook Group, someone there may know https://www.facebook.com/groups/csahell/

[Michael – CSAhell.com staff]

The CSA can actually get access to see your bank statements, I have seen them do this before. They will ask you clarify what each payment into your account is for, and they will also ask for your self assessment. If you’re working cash in hand without a self assessment, the CSA will be the least of your worries – the Inland Revenue will want to know.

[Michael – CSAhell.com staff]

It took a while but we’ve finally sorted out the registration on this forum so you can register OK and post. Sorry about the delay. You can sign up here.

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