PAYE10056 - Coding: coding allowances and reliefs: maintenance payments (Action Guide)

In all cases

Step 1

Where payments are made for the maintenance of one or more children

Steps 2 - 4

What to allow

Step 5

1.

Use Contact History to make a note of the annual amount of maintenance payments made and the dates of birth of all the children for whom the maintenance payments are made. From 6 April 2000, there is no need to distinguish between pre and post 15 March 1988 agreements as all relief must satisfy the 'new rules'

2.

Set the eldest child’s date of birth on the system. This allows the case to be identified for review at Annual Coding where the child will become 21 in the coding year. For more information about setting the child’s date of birth refer to PAYE130025 

3.

When relief ceases to be due for a child, change the date of birth to that of the next eldest child for whom relief is due

4.

Cancel the child’s date of birth when you withdraw the relief or it is no longer due on payments for children

5.

Are payments to continue after the child’s 21st birthday?

• If no, allow payments likely to be made up to the date indicated in the court order
• If yes, allow them until the child’s 21st birthday. After that date the payments are voluntary

Note: The allowable amount is the lesser of the actual amount payable and the Maintenance Relief limit for the year. This limit is the lowest amount to which Married Couple’s allowance is income reduced