MSE News: Higher rate tax payers to lose child benefit

smk77

jlpike wrote: »

The increase to £7475 will give me another £1000 to play with.

I agree this is soooooooooo complicated

You think you'll have £1000 more to play with? Sorry but.....

NI contributions will go up by 1% in April. If you earn more than £32.5k then you'll be worse of despite the increase in the personal allowance.

shop-to-drop

smk77 wrote: »

You think you'll have £1000 more to play with? Sorry but.....

NI contributions will go up by 1% in April. If you earn more than £32.5k then you'll be worse of despite the increase in the personal allowance.

That's right I remember now. I knew they did something to make high earners worse off.

jlpike

smk77 wrote: »

You think you'll have £1000 more to play with? Sorry but.....

NI contributions will go up by 1% in April. If you earn more than £32.5k then you'll be worse of despite the increase in the personal allowance.

True but this does not really bother me as it will happen what ever I do.

What confuses me is at what will happen in 2011-2012 and 2012-2013 the 40% kicks in.

Currently it is £6475+37400. i.e £43875

In 2011-2012 the £6475 is going up to £7475 therfore saving me £200 at 20% or £400 at 40%. If I am 40% they do not want to give me the extra £400 so they will reduce the £37400 upper limit so I will not get the benefit.

jlpike

Sorry, just read the post again. So they are getting the extra £400 back in NI not tax?

If this is the case im neutral which is fine but if they keep the upperband the same i have £1000 to play with to avoid going into %40 even though I will got save any tax on the £1000 it might mean i dont go into %40 and lose £1800 child benefit.

Another question - I assume CB does not count towards taxable income. i,e if you are £1 under 40% but get £1800 CB it does not mater??

WASHER

I assume it doesn't count, it is usually paid to the Mother, and I assume she doesn't earn over the 40% rate (don't be giving the government ideas by including CB as a taxable income!)

julie2710

Juicyloo wrote: »

I think the whole point of this is going back to the whole point of the Welfare System, whereby set up to ensure the welfare of everyone in the system- the welfare as in basic standards of living, not maintaining those living outside their means- listen to yourselves for goodness sake.

I have been on both sides of the equation so am well qualified to comment.

Earning over 44k for a family are more than average, and I have no sympathy with this entitled to society whatsoever- about time everyone had a wake up call.

As for the scroungers on benefits- every story is different, and generalisation is ignorant.

Jobs above minimum wage are hard to come by nowadays due to employers expecting the tax credit system to compensate for low wages. Have seen massive changes in last 10 plus years.

Have no sympathy whatsoever for the people on the threshold- downsize, look at lifestyle cuts, just like people on benefits have to!

And yes am on benefits due to looking after my parents (CA) but also in a grade F property and am middlle class- I hate this country at the moment.

What a self-righteous point of view. Maybe everyone on the threshold has a different story too! You're right generalisation is ignorant!!! When I had my children I was married, we had two incomes My husband left and I was fortunate enough to have a good enough income that with a little help I could keep a roof over our heads and pay for my childcare. To do that I went back to full time work when my youngest child was just 18 weeks old!! So don't start telling me how fortunate I am when I leave the house at 7:30 every morning and am not usually back before 6 of an evening!

Well I can't downsize. I could knock at least £60K off my mortgage but due to my interest rate be financially worse off. So what do I do give up my home and rent?

I may look cash rich but when you have chilcare for 2 children in excess of £1000 per month just so that I can work full time then it doesn't take a genius to work out how important CB is to us!

I have made cut backs, just like those on benefits that I am subsidising! I can't make anymore short of starving myself and my boys.

Hate this country? Well that is the one thing I agree with you on. We live in a society where crime does pay and honest hardworking people are continually being penalised for the good of the rest!

dollydiva

Fact is, if you're relying on your child benefit to pay your bills, then you've got too much debt....and If you REALLY need that cash for uniforms and the like then you really should have considered if you could afford to have kids before expecting the rest of us to help you out.

DD

jlpike

Well Said

People have no idea of the costs involved in childcare etc. Ours is £45 per day. You have to have a decent job to make it worth while. My wife works 2 days to as the 3rd days she earns around £5 after childcare because it is all taxed at 20%.

People on mimumum wage will think anyone earning 44k deserves to lose out but what they fail to realise is to earn that amount of money requires sacrifices. I have to travel to dangerous and non to glamerous parts of the world at a moments notice and have a very responsible job not to mention the years of studying.

My problem with this decision is that it is political. Yes I can understand we need to save money but this is only £1bn which is nothing. I can also understand the reason for this unfair cut off because means testing it on dual incomes gets complicated and expensive to administer.

The real reason they have done this is so when the real pain kicks in in the coming months the conservatives can say they have done this to be fair.

It has nothing to do with saving £1bn and everything to do with sending a message to people who are about to suffer from public cuts.

And who can argue with the rich and weathly 40% ers gettinga a kicking in PR terms. But a single wage earner just into 40% with a stay at home mum could be £200 per month worse off which is a lot of money!

Dorastar

Oh poo got my performance management review this week and if I've worked hard all year I will go up to £44,012! Seriously for £12 I will be able to lose around £1600 CB per year so that makes perfect sense to me especially as a family on £86,000 could theoretically still get it - that is belting news, thanks George.

Can't put extra into pension or reduce hours and have worked very hard for years for this but is ok cos have pre-warned my children not to work too hard or achieve too much and never ever, even if things look dire, to vote tory (or lib dem now)

Please tell me George Osborne has been experimenting with drugs or that someone dared him to say it.

Have just re-read his comments and apparently this is an anomaly - aka a right bloomin farce

Jayceee

One would hope that before this happens it will be revised to be based upon the overall household income rather than an individual.

Secondly, and a few have said it before, having children is a lifestyle choice, if you can't afford them then don't have them. I don't have children and I don't want a single penny of my taxes supporting somebody that does, but unfortunately I don't have that choice.