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dividends: why ARE'NT they included as income?

  • jamais
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31 Jul 10 #217009 by jamais
Topic started by jamais
for child support purposes?

what is the possible rationale?

My stbx has approximately the same income as me, mine all salaried, his half salary, half dividends.

he pays a monthly amount based on his salary only. which covers less than a sixth of the childcare I pay for the children, let alone food, clothes, supporting friendships, travel to school, school clothes, school trips etc.

the taxpayer helps me out with tax credits towards the childcare and child benefit (although in my case it IS a tax rebate as it is less than I pay). but from April I won't be entitled to the tax credits, and I will really, really struggle, and anyway why should the tax payer pick up the tab for our children when he has a big stream of "invisible" money?

what is the thinking behind it?

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31 Jul 10 #217013 by James53
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I don't understand. Why are you losing child tax credits and why do you see tax credits as a tax payers subsidy.
We pay the taxes so should be entilted to the benefits also.

  • Lady in Blue
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31 Jul 10 #217016 by Lady in Blue
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Who says dividends aren't included as income?

  • dadanon
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31 Jul 10 #217040 by dadanon
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They are but not in the initial child maintenance calculation. The PWC will have to request a variation if she/he considers the CFA's calculation incorrect.

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31 Jul 10 #217041 by dadanon
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They are but not in the initial child maintenance calculation. The PWC will have to request a variation if she/he considers the CFA's calculation incorrect.

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31 Jul 10 #217042 by dadanon
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They are but not in the initial child maintenance calculation. The PWC will have to request a variation if she/he considers the CFA's calculation incorrect.

  • jamais
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31 Jul 10 #217043 by jamais
Reply from jamais
the CSA don't include dividends as income for child maintenance calculations. I have no idea why not.

I will lose at least half of the tax credits in April due to Osbourne et als recent announcements, you need to read the detail of the budget and the appendices, they have lowered the threshold and increased the taper rate: I may lose all of it, I've downloaded the tax credits training manual and can't figure in the calculation for the childcare element of the WTC, in April 2012 the threshold plummets again, if I don't lose all entitlement this april, I will next.

My youngest is 2, I work 40+ hours at work, and untold hours at home to do my job. My pay is frozen, no chance of promotion or finding a better paying job (public sector recruitment freezes) I can't increase my income, as in order to work more I need more childcare.

so I'm going to lose one income stream (tax credits) and stbx pays a pittance towards the costs of bringing up our children. I am a little angry and don't get why dividend income is excluded from the CSA rates.

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