Financial advice needed for early stages of separation while co-habiting(5 Posts)
Hello lovely mumsnetters,
My DH and I are separating. We are having a sit down tonight to talk through immediate living arrangements. We have 1 DS (16 months) and he has 2 DC from first marriage (with us e.o.w). I work part time and he is a freelance agency worker. He has his own limited company, from which he pays himself a small salary and receives dividends from. He was also paying me a salary from the business, however that has now stopped.
My question is, how much would be fair for him to contribute towards the household bills while we both sort ourselves out? Up until now I've been paying all of my money into the joint account to cover bills and had about £100 left in my personal account for clothes/hair cut "me" stuff essentially. Now he's stopped my salary from the business i wont have any spare cash if i pay 50% of the bills. Can i ask him to pay more than 50% while we still live in the same house?
I'm planning on making a claim for WTC and anything else i'm entitled to. Have no idea how much ill get, which makes planning for the future incredibly hard. Any experience of making claims greatly appreciated....
I take it the small salary from his business didn't involve you doing any work? Why has it stopped?
No work, all to do with tax reasons. He hasn't told me its stopped, i did some digging and found out hes not planning to pay me. I should be getting it tomorrow, i have now paid all my money into joint account, expecting my salary from him tomorrow, so i'm now completely scuppered for the month.
So you've avoided paying tax into the system but are happy to collect WTC!??!?!?!
Not helpful I know.
Turntous website will help you with how much money you could be entitled to.
I've copied my response from your other similar thread....
You need to take some serious advice. Either your h is very financially savvy in which case may be about to royally screw you over, or he is financially naïve and you could both be in trouble with HMRC.
If you are being paid wages then you are an employee or director of the company and he cannot stop paying you without formally terminating your employment (and giving you notice of that). Do you have a contract of employment which sets out your duties, salary and your notice period? You should have. Have you been paying tax on this income - if you have another part-time job you're possibly already earning over the tax threshold - perhaps your h's accountant has completed your annual tax return (which you would have signed)?
If you are being paid dividends then you are also a shareholder of the company. If your h has kept his accounts correctly then you will have at some stage 'invested' at least £1 to buy a share of the company. You are therefore a part owner, and it is difficult for your h to force you to sell your share back to him. Depending of the class of shareholding he may chose to pay you a different dividend from the level he receives, but he should have clear notes - from a Board Meeting - to support every decision.
I suspect that he has been paying you as an employee / director as a convenient way of taking money out of the company without paying tax on it, and has also allocated a shares to you, to pay you a dividend on a similar basis. You need to get some proper advice on your situation because if this is the case you could both be in trouble with HMRC.
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