Tax on maintenance payments

Tax on maintenance payments

Author
Discussion

bunchofkeys

Original Poster:

1,056 posts

69 months

Thursday 18th April 2019
quotequote all
If one has to make maintenance payments to their ex, for their child (global maintenance), by order of the court.
What are the tax implications of this?

About 35% of my net income now goes out as maintenance, does HMRC now see that i "earn" 35% less than before and thus i'm taxed less?

bunchofkeys

Original Poster:

1,056 posts

69 months

Thursday 18th April 2019
quotequote all
randlemarcus said:
No. But its fine, because they arent taxable income for the recipient, so you're paying her income tax as well. Good, innit?
What the ass!!??
So that's "tax free" income to them?!

bunchofkeys

Original Poster:

1,056 posts

69 months

Thursday 18th April 2019
quotequote all
Talk about rubbing salt into a wound.

Thank you all for the info.