Does a separation affect my tax status?
You are considered to be separated as soon as you both live apart. But the married couple's tax allowance was abolished on 5th April 2000 except if you were born before April 1935. Tax relief on maintenance payments has also been abolished except for those also born before April 1935. No tax is paid on maintenance payments as the Inland Revenue does not consider them as a form of income for tax purposes. The additional allowance for children is now included in the Child Tax Credit which is detailed below.
Should I still advise the Inland Revenue about the separation?
Yes, you should both agree on the date of separation for tax purposes as this could affect your position as regards capital gains tax. It would also affect your position regarding any joint income and you should seek professional financial/legal advice. The Inland Revenue national general enquiry line is open Monday to Friday 8.30am to 5.00pm Phone: 020 7667 4001 You can also find other enquiry phone numbers in your local phone directory or on the website together with a list of frequently asked questions.
The Inland Revenue general website is a useful resource of information.
Who can help me with tax matters?
The Inland Revenue is now considered to be much more helpful. Click on the above link to their website or look them up in your local phone directory. You can also get advice from an accountant or a financial adviser. Click on the link to Financial advisors
Important Tax Credits
9 out of 10 families with children are entitled to tax credits. But you don't need to have children to qualify. There are extra credits for lone parents and those with a disability. Help may also be available for costs with childcare. CHECK IT OUT.
Gingerbread has excellent fact sheets on many issues including Tax Credits
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