[Solved] Ask your finance questions here

Hi,

I was just wondering if you could advise if the person I am paying child maintenance to under the CSA, should pay tax on the amount I pay her?

Just in case needed, the amount is around £5k a year.

Hi Darrent
If you have paid tax on the £5k then no it shouldn't be taxed, as acdt has mentioned.
There are some good guides on taxation here:
https://www.moneysavingexpert.com/banking/tax-rates/
https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
https://www.moneyadviceservice.org.uk/en/articles/tax-and-national-insurance-deductions
Hope that helps.

Also, it's worth me saying, maintenance payments are not tax exempt, they count towards your tax allowance.

Hi Samantha - can I clarify that (especially since I've just posted a couple of other places about this), I was under the impression that child maintenance received isn't assessed as income for tax purposes , eg as advised on here
https://www.citizensadvice.org.uk/family/children-and-young-people/child-maintenance/child-maintenance-where-to-start/

As far as HMRC, this income has already had tax paid on it by the paying parent, so if the PWC was taxed on this, this would be double taxation.

I've clarified it! Of course. Taxation is slightly (although not completely) beyond the realms of normal personal finance. So I've guided Darrent towards some official guides.

Thank you 🙂

Hello

I have recently separated from my wife, we have one child together who remains in the marital home. The house is rented with the rental agreement in both of our names, and my friend as a guarantee for the rent.

I have had to move out and live in a house share, as I am still paying 100% of the rent on the house they live in.

I'm wondering what I am actually liable for paying? I have suggested she downsizes and moves to somewhere cheaper and more appropriate so that I can reduce my outgoings, essentially I can't afford to pay £850 a month for her rent and £495 for mine. Whenever I suggest this she threatens to get solicitors involved because, as far as she is concerned whether I pay £850 for her rent, or just give her £850 per month, I would be liable to give her the same amount.

The issue I've got is that if I do not pay the £850 per month, she will actively miss the rent payment knowing the rental agent will go to my friend who is the guarantee for the rent :zzz:

So essentially I'm locked in this cycle, I've asked her to go to mediation through the NFM as this is much cheaper than sorting our finances through solicitors but she is refusing to mediate, yet continues to tell me that we can work it out between us. When it's clear we can't, every time I suggest paying child maintenance as per the calculation (which is £368 per month), plus to pay half of my son's childcare bills on top of that she threatens me with courts and solicitors because she's convinced she is entitled to more than that?!?!

Anyone have any similar experiences or advice to share? I have no idea what to do and never had to do anything like this before.

I think, for the moment, you will probably need to continue with the rent, but you need to get divorce proceedings underway as soon as possible so that the finances can be resolved properly in court.

Hi Dale
Formal divorce proceedings will mean you and your ex will have a more structured finance plan in place. For now there are some things you can do. More details to follow.

You need to make sure your ex partner/yourself is getting all the state financial support you are entitled to - see here https://www.moneyadviceservice.org.uk/en/articles/benefits-you-may-be-entitled-to-if-you-are-separating

You may also be entitled to housing benefit - which you or your ex can do via your local authority.

These can help bring your immediate expenses down.
Long term you will need - a divorce settlement with a formal maintenance payment plan in place.

Hi Samantha,
I've recently separated from my wife and have moved out of the maternal home which we both agreed to sell up until the point of putting our property on the live market. The same weekend I receive a phone call from the ex stating that she's not selling the house as it's not affordable for her as she is studying as a mature student at uni.

I originally did not want to sell as it's my child's inheritance, but as she was the one who wanted the divorce I told her that she can apply for it as I wanted to work on the relationship, but she said she couldn't afford it and has been pushing me to do the divorce,but I am not. However a week later she goes and buys a car.

she hasn't applied for the separation officially either and as the house is in my name I'm having to pay the mortgage as well as child maintenance which adds up to around 850 a month however I've suggested that she pays half of the mortgage as the current arrangement leaves me living back with my parents where I have my child on the weekends.

And as she is at uni she has said she will stay at the house until she finishes in two years and I've told her to put that in weighting as I've heard that if your ex partner as not lived with you for two years she can transfer the house in her name which leaves me with nothing for a place for me and my child.

Is this the case after two years?

Thanks in advance
And is anyone else in this situation and got any advice