Children: Maintenance

Department for Work and Pensions written question – answered on 1st February 2018.

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Photo of Marion Fellows Marion Fellows SNP Whip, Shadow SNP Spokesperson (Small Business, Enterprise and Innovation)

To ask the Secretary of State for Work and Pensions, why the Child Maintenance Service allows non-resident parents £2,500 of unearned income that is not factored into payment plans; and whether he plans to review this policy.

Photo of Kit Malthouse Kit Malthouse The Parliamentary Under-Secretary of State for Work and Pensions

An error has been identified in the written answer given on 12 October 2017.

The correct answer should have been:

Calculation of a child maintenance liability is based on gross income information provided directly to the Child Maintenance Service by HMRC. Individuals are required to declare unearned income not taxed at source which does not exceed £2500 a year to HMRC, which already enables HMRC to include it in the income information they provide. Unearned income exceeding £2500 a year is dealt with by HMRC through tax self-assessment and is picked up in a child maintenance calculation through an unearned income variation. We have no plans to review this.The treatment of unearned income for child maintenance purposes is aligned with this for administrative efficiency. We are inviting views on the future treatment of "income" within the recently published Compliance and Arrears Strategy consultation.

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Photo of Caroline Dinenage Caroline Dinenage Minister of State (Department of Health and Social Care)

Calculation of a child maintenance liability is based on gross income information provided directly to the Child Maintenance Service by HMRC. Individuals are required to declare unearned income not taxed at source which does not exceed £2500 a year to HMRC, which already enables HMRC to include it in the income information they provide. Unearned income exceeding £2500 a year is dealt with by HMRC through tax self-assessment and is picked up in a child maintenance calculation through an unearned income variation. We have no plans to review this.The treatment of unearned income for child maintenance purposes is aligned with this for administrative efficiency. We are inviting views on the future treatment of "income" within the recently published Compliance and Arrears Strategy consultation.

Does this answer the above question?

Yes0 people think so

No1 person thinks not

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