tax on maintenance payments?

moretothegirl

Basically this never occurred to me before but popped into my head today so hopefully someone can clear this up for me.
Does somebody who is separated and receiving maintenance payments from her ex husband for their child, have to pay tax on this payment?
I'm asking for someone I know who is on one-parent family payment and also receives rent allowance. I am worried that maybe she is supposed to declare this maintenance payment and that she might owe taxes on it? It is only €200 a week though so maybe not?
Any help appreciated, I don't want to worry her yet, however I'm afraid she may get in trouble if not!

Thanks in advance!

MBateson

If the maintenance payments are for the child, it's not taxable

nompere

If maintenance payments are for the child then they aren't taxable, but nor do they give any relief to the payer.

In general, legally enforceable maintenance payments are taxable in the hands of the recipient and allowable for the payer. Payments made under an informal agreement aren't taxable or allowable.

Separated couples may elect to be taxed as a married couple. Being taxed as a married couple will never give rise to more tax than being taxed as two single people, and usually wil give rise to less tax.

Whether the separated couple can agree to this is, of course, quite another matter!

testicle

The maintenance payments have already been taxed on the payer.