Irregular CM Payments

I'm being made redundant in a few months.
At the moment I'm paying the correct amount as based on the CSA website. But due to debts etc may be high ( separate issue).

House on market and downscaling as fast as I can.

Come the 1 Nov I will be officially unemployed.

I get a Army Pension £377 per month net and war disability pension £264 every four weeks.

Checked with local DWP and I will get housing benifit, so Council Tax relief and JSA.

So rather than paying a standard weekly payment is it OK to pay the correct percentage for the money I recieve, when I receive it.

So CM from Army Pension on 1st, WDP on date I receive in (4 weekly) and JSA when I get that.

I presume contribtuion for Council Tax is outside CSA.

Will need to get a 2 bed place for when boys stay, £550 a month - housing benifit is £412 a month and 25% of Army Pension goes to Maint payments to first ex wife.

So whilst I may be better of than some that have lost jobs. There isn't alot left for me and boys when I have them.

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Second question but related.
Desparetly trying to set up own business (sole trader) as I really don't want to be on benefits, but Income will be variable based on need to draw it and actual funds available.

So again, is it permissible to just pay the correct percentage (lump) sum every time I draw salary from business.

Not good for her budgeting but best way I can see of managing my money

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I understand that the rules might change next year so instead of 15% net, CM becomes 12% of gross.

Could I opted to pay 12% gross on payments that are not taxed. ie Captial Gains

They might be a few percentage points, but is the difference between subsiding for the next 10 years and being able to live (alittle).

Thanks

Mike

PS Boys are 10 & 8 and I'm 49

Am no expert but wanted to try and reply.

1. Pay according to the CSA calculator. Your doing no one any favours driving yourself into debt by making payments you can’t afford.

You should check with the csa if the war disability pension counts as income. I think it would be disregarded.

It would be worthwhile applying for DLA. This is a non means tested benefit payable at different rates to people with disabilities. It's a paper application. Even if you are assessed at a low band the little bit extra may come in handy.

2. My advice would be to set yourself up as a ltd company. Pay yourself minimum wage for hours worked. At the end of the year work out any profit, once all expenses have been deducted, and pay yourself a dividend. Which would be tax'd as corporation tax rather than income.

It's more complicated than that but ltd is definitely the way to go.

3. Can't help with the last question but hope someone comes along who can.

Hi

Receiving war pension is one benefit that falls into the catagory - flat rate of £5 p.w. see page 12 on here

www.csa.gov.uk/en/PDF/leaflets/new/CSL303.pdf

hi
jokeman said it right just to reinforce. Good luck brave step your taking x

Mike407
As far as i know Mike you may not be able to claim DLA as you already receive the War Disability Pension.

The Directgov site www.direct.gov.uk/en/DisabledPeople/Fina...dSupport/DG_10016204 states that "if you get War Disablement Pension or another payment under the War Pension Scheme, this may affect other benefits you might get, such as Disability Living Allowance, Employment and Support Allowance, Incapacity Benefit or Income Support."

Do you receive a care and mobility supplement? Maybe you would qualify for one or other components of DLA?

It might be worth contacting your local DWP office for clarification.

All the best, Chris.

jokerman - Thanks - Checked and you are correct. £5 a week. Happy but not for boys they will miss out on a lot.

Chris - Thanks don't receive care or mobility. So not more options there at moment.


Zonked -2. "My advice would be to set yourself up as a ltd company. Pay yourself minimum wage for hours worked. At the end of the year work out any profit, once all expenses have been deducted, and pay yourself a dividend. Which would be tax'd as corporation tax rather than income."

1. May have to go down bankrupcy route if STBX doesn't agree split in house equity to cover debts.

2. Also new CSA rules from 1 Apr is for me 12% of gross income. So yes dividends my give me a small saving


Not trying to work out how much I need to earn to come of benefits

Thanks guys - Now have a good draft letter in my head to put to STBx Sol

Going back six years here, but my ex had £49k of debt. As we were married, the debts were considered joint, and the family home had to be sold to pay them off.

Quite a surprise for me. We have four children.

So, it could be that your ex will need to accept that the debts will be paid from the sale your house?