Cms ex opened ltd company

[LifeIsARollerCoaster22]

He's gone from employed at an average wage. To opening a ltd company. Paying himself and one employee. Around 19k.
He said he's contacting cms to say his paye wage is lower over 25 %. Will they take that into consideration that he owns the company, although liklihood is its probably not making much profit yet as only been open 3 months. His accountant has told him he needs to leave a decent amount in the businesses account rather than a larger wage at first as hmrc will want to see its a viable business at the end of the year.

In the meantime i guess my cms will go down.

HMRC don't look to see if it's a viable company.
He's paying himself less to minimise his tax (& his CM)

I did wonder.
However i do believe the first year is hard gettinf set up and initial expenses, equipment and so forth. I kinda believe he can't pay himself much more at the moment. He did say in time he hopes to get more as hes had to move to a smaller property due to the lesser wage at the moment, this doesnt affect ds though thankfully when hes there he has his own space and can still provide there.

People always ascribe the worst don’t they. Starting a business, “he must be doing it to spite me”! Well maybe he wants to start a business and by co-parenting properly you will all be winners in the long run:

Lots will tell you it’s done to lower CMS only you will know what his true intentions are.

I run a business and cash flow is a massive issue when you first start up as you are waiting on invoices whilst paying out for capital expenditure.

I have 50/50 shared care of daughter and although I owe no CMS I have offered money. Not everyone with a business is doing it to screw their children.