2007-01-25 00:34:25 · 2 answers · asked by rachel k 1 in Business & Finance ➔ Taxes ➔ United Kingdom
The person sending you the alimony is deducting it from their earned income and therefore not paying taxes on it so guess what....you get to claim that money as income and pay the tax.
Lucky you.
2007-01-25 00:40:51 · answer #1 · answered by lunatic 7 · 0⤊ 1⤋
The first answer given to you is irrelevant - the guy is from America and doesn't have a clue what he is talking about.
Tax credits are calculated on the amount of income available to you. Ring the HMRC tax credits helpline (0845 300 3900) to find out if your tax credit claim will be affected. Also have a look at http://www.hmrc.gov.uk/leaflets/cic.pdf
If you are paid too much tax credit HMRC will seek to reclaim it with interest. Telling them ASAP of any change of circumstances will avoid this and allow them to adjust your award.
I hope this helps. I know tax credits can be confusing, but ring the Revenue - the staff can be really helpful if you are honest.
2007-01-25 09:31:47 · answer #2 · answered by notmarriednochildren 4 · 0⤊ 0⤋