How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Clare Your Own Question

Clare
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 33316
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
13262538
Type Your Family Law Question Here...
Clare is online now

My Ex receives most of his income as dividends from his own

Customer Question

I am acting on behalf of my business partner who is having difficulty with his wife. The business pays the Directors the most cost effective way for tax purposes. This includes a basic wage of £10K per year and Dividends around £30K per year + business expenses. His Ex wants to class all earnings for CSA purposes and I am concerned the CSA have the power to Audit the business for payments received to the Directors and in doing so identify other irregular payments like Fuel, hotel or accommodation that are genuine expenses and cause the business possible problems. What powers do the CSA have to audit a Limited Company with 3 shareholders and the Director in question holds a 36% stake in the company? Would he be able to place the shares in his new wifes name or even his new Childs to avoid this high level reporting of all our private company information. 

Submitted: 3 years ago.
Category: Family Law
Expert:  Clare replied 3 years ago.
Hi
Thank you for your question.
I will try and assist but need some further information first.
I assume that your concern is the issue of the Business Expenses.
Are they all fully documented for Tax purposes?
Claire
Customer: replied 3 years ago.

The business expenses are fully itemized but we pay a car allowance through the form of a dividend for tax purposes rather than PAYE and pay a lesser base salary again to reduce Tax. So my primary concern is the question what powers do the CSA have to investigate a Ltd Company. Can they request bank statements for example? After reviewing what is classed as earnings it is anything subject to tax and NI which dividends are treated differently 10% up to a certain amount then 32.5% thereafter payable through the P11D self assessment. DO they count or not? Can they be challanged and if so ho does this affect my company? Yours Truly Mark

Expert:  Clare replied 3 years ago.
Hi
The dividends will form part of the CSA assessment in any event but the expenses will not and the CSA will not be interested.
It woudl be unwise of the person involved to try and divert the dividends else where - as this will then provoke further investigation by the CSA.
However provided the Company tax position is correct the Company need have no concerns
I hope that this assists please ask for further clarification if need be
Claire

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Kasare

    Kasare

    Solicitor

    Satisfied Customers:

    204
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
< Last | Next >
  • http://ww2.justanswer.com/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    204
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.com/uploads/TG/TGraham12/2012-7-17_81212_bigstockBusinessHandshake508163.64x64.jpg Thomas's Avatar

    Thomas

    Solicitor

    Satisfied Customers:

    133
    UK solicitor
  • http://ww2.justanswer.com/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Solicitor

    Satisfied Customers:

    7
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.com/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    340
    LL.B (Hons), Higher Prof. Dip. Law & Practice
  • http://ww2.justanswer.com/uploads/GL/Glossolicitor/2013-5-14_214834_TWMParkinsonWright.64x64.jpg Glos solicitor's Avatar

    Glos solicitor

    Family Solicitor

    Satisfied Customers:

    2
    10 years experience in all areas of family law, now specialising in cases involving social services and children
  • http://ww2.justanswer.com/uploads/UK/UKfamsol/My face July 2011.64x64.jpg UKfamsol's Avatar

    UKfamsol

    Family Solicitor

    Satisfied Customers:

    240
    Very experienced specialist family law solicitor, qualifed in 1994
  • http://ww2.justanswer.com/uploads/CH/chathamchamber/2011-4-24_191833_1.64x64.jpg chatham-chamber's Avatar

    chatham-chamber

    Solicitor

    Satisfied Customers:

    182
    LL.B, Pg.Dip, LL.M, M.B.A (Pending), Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)