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One to one, or group support for anyone with a financial query...
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.