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Hi,
I receive income from a property that I let out, and I know that this is taken in to account should my ex-partner request a variation of the 'standard' child maintenance calculation.
However, new taxation rules for property income are being phased in which means finance costs are now taxable (and the taxpayer receives relief at basic rate). I.e. the net profits from the property are deemed to have gone up, and I understand that this is the figure added to 'earned income' in the maintenance calculation.
This does not represent any actual increase in property profits received as the underlying finance costs are still there. In fact if my total taxable income exceeds the higher rate threshold, it increases my income tax and my effective property profit is in fact reduced.
Is this impact on taxable income considered in the offical child maintenance calculation ? If not it means an increase in the child maintenance amount without there being a real increase in income for the paying parent.
I suspect your accountant would be best placed to answer this, but I suspect that you may be right that you may be paying more maintenance for no increase in income.
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