MSE News: Higher rate tax payers to lose child benefit

jkmum

CB is in my name. How will they know how much my OH earns? There is no connection at the moment (well there won't be when CTC is taken off us next year!).

DavidLaGuardia

jlpike wrote: »

Every £1 I earn from then on in a pay rise or bonus etc I will get 50p as I will be taxed at 40% + national Insurance but I will lose all of my Child Benefit. So I get a £1 pay rise and lose teh equivilent of £5000 salary.

.

Nearly right, but National Insurance is 1% above £43,888, your take home after NI & tax would be 59p in the pound, not 50p.

Hopejack

That is correct, CB is in one parent's name (usually the mother but not always). The reason for that was to protect the mother's pension accumulation (home responsibilities protection) for the first 6 years of a child's life if they stay at home - think its 6 yrs anyway. Obviously that is probably about to go too - well, if you can't claim CB, you can't claim HRP either!!!

Madmonk

I realise that they way it's been done is totally unfair to single earner families but I'm glad they have done something! My son is at Uni in Oxford and he was totally fed up listening to the snobby undergrads boasting that they didn't need loans, grants etc. because Mummy saved the child benefit since he was born and gave it to him as a lump sum to help with Uni Yuck!!

zyonchaos

2010 wrote: »

Years ago school uniforms could only be bought at certain shops and cost a fortune.
Now for a tenner you can go to Tesco and get the whole lot.

hiney777 wrote: »

school uniform= 5 polo shirts with school logo on £60,
1 blazer with logo £40, 3 sweetshirts with logo £40 and then trousers, shoes, pe kit. If the kids dont wear tops with a logo on they are sent home.

The school uniform argument is a great one. Yes you can buy the majority of the uniform on the cheap from Tescos/Asda et al. But as is also stated the schools started getting fussy about the children being in logoed uniform.
I brought (for my 5yr old boy) the School Jumper with logo (cant remember how much but not cheap), but I refused to pay out for the polo shirts with logos as 90% of the time its under his jumper.
When the school said that I had to, I asked them why?
Apparently it is to promote team building and uniformity with the children (as a member of the Armed Forces I understand this and even agree with this). However their third reason was it was to identify them as a member of the school. I laughed and asked surely their teachers should be able to identify them as a member of the school and the fact that they are their should identify them to any member of the public that visits the school. They couldnt answer me when I asked what would happen if I didnt send him in the officially logoed t-shirt.

As for the whole benefits saga, I agree it should be on household income not one wage income. But then I think the threshold should be lower for receipt of it, and I disagree that their should even be a higher rate of tax. Why cant their be one tax rate for all, as I believe it gives people less incentive to succeed. "well done bob/sally heres your pay rise for being so good at your job, by the way it will now cost you more in tax and NI so its really a pay cut, but you are valued"

Death and taxes the only certainties in life!!

hebe

Hopejack wrote: »

That is correct, CB is in one parent's name (usually the mother but not always). The reason for that was to protect the mother's pension accumulation (home responsibilities protection) for the first 6 years of a child's life if they stay at home - think its 6 yrs anyway. Obviously that is probably about to go too - well, if you can't claim CB, you can't claim HRP either!!!

It does look that way, however there has been no mention of HRP going as well as CB, and certainly no glowing speeches of just how much will be saved by stopping it. I have asked my MP to clarify how HRP will change with the CB changes. It is certainly disappointing if changes to NIC for stay at home parents are being slid through unannounced on the back of the CB changes.

Kitten-B

2010 wrote: »

The minimum wage is a tad under £6 an hour, which equates to £12,480 a YEAR for a £40 hour week.

Maybe this should be the benchmark for CB to be assessed and all the £20k/£30k/£40k plus earners worrying how they`re going to manage should take a long hard look at themselves.

Years ago school uniforms could only be bought at certain shops and cost a fortune.
Now for a tenner you can go to Tesco and get the whole lot.

If people actually spent their CB on the children then I could maybe understand what the fuss is all about.
Most of the money goes on anything/everything EXCEPT the kids.

I don't understand posts like this. Don't you know childcare costs about £850 a month? That is the equivalent of £15k of a basic salary! What on earth do you think people spend their child benefit on? The ones who work need it most!

koolkid

Madmonk wrote: »

I realise that they way it's been done is totally unfair to single earner families but I'm glad they have done something! My son is at Uni in Oxford and he was totally fed up listening to the snobby undergrads boasting that they didn't need loans, grants etc. because Mummy saved the child benefit since he was born and gave it to him as a lump sum to help with Uni Yuck!!

Surely that's just good planning for some though? They may have had to make sacrifices to put that money aside because if they were MEGA loaded it'd come from some other capital not a benefit (prehaps that's just me being naive).

You'd hope that after an Oxford education these people will go on to have good jobs and pay high taxes so I can't feel too cringy at this! Would prefer people to spend their child benefit on their kids education than some of the other things I suppose it goes on.

monkeydog

I've never understood why you should automatically get paid to pop out kids. It's a lifestyle choice. If you can't afford kids, get a dog.

koolkid

jkmum wrote: »

CB is in my name. How will they know how much my OH earns? There is no connection at the moment (well there won't be when CTC is taken off us next year!).

This is what I can't understand? It's going to cost a fortune to get this all arranged!

Also what about parents who don't live together?