Thursday, 1 December 2011

Is the tax man going to be collecting more than just your tax....?

Child maintenance may be deducted directly from a parent’s earnings by the taxman, under proposals which have been announced by the Government. The Work and pensions minister Maria Miller has suggested that the new scheme would make it harder for ‘wayward parents’ to avoid paying for the upkeep of their children.

In addition payments would ordinarily be based on the non-resident parent's gross income from the most recent tax year, which could be obtained directly from HM Revenue and Customs. This would, in the Government’s view, make it harder for a non-resident parent to avoid payment by not disclosing their full income.

The proposals are likely to be music to the ears of those parents who find their former spouse or partner attempting to avoid their financial responsibilities. Although it will not answer the problem of self employed business people who want to avoid payment. Others will also no doubt wonder whether the Child Maintenance and Enforcement Commission which replaces the CSA can be trusted not to make mistakes?

For more advice on child maintenance or issues surrounding separation and divorce follow our family law blog or follow us on Twitter @divorce_experts.

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