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Legal matters

spousal maintainance & tax credits

9 replies

dreamteam · 22/02/2013 11:28

I am completely paranoid about getting it wrong and as far as im aware I am doing everything by the book. However a friend told me that there are a lot of changes going on and that it may be that they are going to take maintainance into account when calculating tax credits. I only receive child benefit and both working and child tax credits.
I get a sizeable amount of child and spousal maintainance however this covers the big mortgage I have inherited and i live off of my small wages and tax credits.
Can anyone tell me if they are now going to take maintainance payments into account when calculating tax credits.
Many thanks.

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RedHelenB · 22/02/2013 12:58

I think spousal will definitely count.

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dreamteam · 22/02/2013 13:10

Ok well if thats the case homelessness here I come.
You say "think" Does anyone actually know??

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dreamteam · 22/02/2013 13:16

Oh at last...was going cross eyed looking at HMRC site finally found what i was looking for.
www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/other-income.htm#2

Maintainence is not included in the calculation...Hope this helps others!
Phew!

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Baabaapinksheep · 22/02/2013 13:19

As far as I know child maintenance does not count, spousal maintenance does.

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dreamteam · 22/02/2013 19:42

I will call them next week as the wording says....maintainenance received from a former partner... I does not say child maintainance or spousal maintenance. Just maintenance.

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RedHelenB · 22/02/2013 20:01

Spousal definitely counts for council tax & housing benefit I know that.

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dreamteam · 26/02/2013 23:13

Ah thanks, I don't get either of those but good to know.

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BlooMoon · 04/03/2013 14:42

My understanding is:
Under current tax credits system, neither child nor spousal maintenance counts for income.

Under new Universal Credit system, spousal maintenance WILL count as income, and reduce Universal Credit payments pound-for-pound. I cannot find any mention of child maintenance, so assume that that will still not be counted as income.

If you are switched from the tax credit to the universal credit system, there will be "transitional protection", but this will be lost as soon as there is a change in circumstances.

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Mendi · 06/03/2013 21:51

When I got both spousal and child maintenance, neither was taken into account when calculating CTC. I could have had £10k a month (though I didn't!) and still got the full amount of CTC. Madness. I don't think that's changed though. Only income counts.

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