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Child Maintenance and Tax

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u6c00
Posted by
Platinum Member

13 Jan 14 #418877 by u6c00

Topic started by u6c00

A quick question. Is maintenance deducted from taxable income at all?

A couple of situations:

Bob earns £20,000 and has to pay 12% of gross income (£2,400). His taxable income is therefore £17,600 and he pays tax and national insurance which I calculate means he takes home £14,787

Charlie also earns £20,000 and pays £2400 maintenance. Taxable income is unaffected so he pays tax and national insurance on the full £20,000 leaving him with a net salary of £16,419, then his maintenance is deducted so his take home pay is £14,019

As far as I''m aware it''s the second scenario but I wanted to check for some budgeting!

Child Maintenance Options
Moderator

17 Jan 14 #419357 by Child Maintenance Options

Reply from Child Maintenance Options

Hi u6c00

Thanks for your post, I am William the child maintenance Options consultant. Child maintenance is calculated on the paying parent’s gross weekly income. This is the amount before Income Tax and National Insurance are deducted, but after pension contributions.

To find out more about all the options available for maintenance and how Child Maintenance Options can help you visit www.cmoptions.org or call us free on 0800 988 0988 between 8am and 8pm Monday to Friday or 9am and 4pm on Saturday.

Thanks
William

WYSPECIAL
Moderator

17 Jan 14 #419394 by WYSPECIAL

Reply from WYSPECIAL

It''s the second scenario. Unfortunately you don''t get tax relief on maintenance payments.

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Moderators: wikivorce team, rubytuesday, dukey, hadenoughnow, Tets, Forseti, Mitchum, WhiteRose, Lostboy67, WYSPECIAL, Bubblegum11

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