MSE News: Higher rate tax payers to lose child benefit

murraymint1976

It's just a thought but the government have said that they can't means test families due to the administrative costs outweighing the savings. Couldn't they in fact means test on the same form as the child tax credits where both parents declare their working hours and salary. This gets sent through every year for us to check and amend if neccessary, why can't this same form be used for child benefit purposes?????

murraymint1976

jennie65 wrote: »

If you are in the "higher tax bracket" and are sat on here pleading poverty then you are obviously living well beyond your means then. Try getting rid of your HP cars and buying a smaller house then.
I only earn 18k and I have 2 children to support on that. I have no loans, credit cards, I own my 2nd hand car, and rent privately.
I'm sorry but if you cant "get by" on your measly £44k then you are seriously doing something wrong.

We can get by on our 'measly' 44k, what I strongly object to is the families that will earn way over above that between two parents but will still be entitled to child benefit.
Just noticed on your post something about bankrupt 15/04/09, maybe your high and mighty attitude isn't completley whiter than white?

daska

Surely the simplest and fairest change would be to cut all Child Benefit and increase Child Tax Credit? That way it's means tested, applied fairly and benefits those who need it most.

goldengirl28

i'm not sure everyone completes that form, we sure don't as we don't qualify...........but its a good idea if they made it compulsary for every family to complete it.........maybe your onto something

admin would be a bit higher as more forms to process, but wouldn't that create jobs therefore reducing unemployment and also generating more tax and paying less benefits.........sound slike a win win to me

Kimitatsu

jennie65 wrote: »

If you are in the "higher tax bracket" and are sat on here pleading poverty then you are obviously living well beyond your means then. Try getting rid of your HP cars and buying a smaller house then.
I only earn 18k and I have 2 children to support on that. I have no loans, credit cards, I own my 2nd hand car, and rent privately.
I'm sorry but if you cant "get by" on your measly £44k then you are seriously doing something wrong.

But on that £18k how ctc, wtc and help with school trips etc do you get?

Its not about being a "measly" £44k, its about the fact that many people have worked long and hard to get there, often funding their own studies along the way, or putting off having families in order to be able to support their own children. It is an unfair system where one parent can earn up to £44k but two parents in the same family can earn up to £80k and still retain the benefit. These same families will also benefit it a married couples allowance is introduced so in effect getting back twice the benefit.

As you are now a discharged bankrupt then you have no debts, but for others they have struggled and maintained those payments to complete thier loan and credit agreements. Neither of you should be judged because of it

ajaxgeezer

Kimitatsu wrote: »

It is an unfair system where one parent can earn up to £44k but two parents in the same family can earn up to £80k and still retain the benefit. These same families will also benefit it a married couples allowance is introduced so in effect getting back twice the benefit.

....I'm certain they will look again at the criteria for the cut off points of paying CB. I'd guess they'll introduce a 'household income threshold' as well as the higher tax band one.

Also, Cameron's previous spoutings about a married couple allowance have been vague but he regularly says "up to a combined income of.....". Although he's been vague on the numbers it has always been a lot less than £80k so the same household would never fall on the right side of both policies.

deedee1968

If I am right you can only transfer £750 of your personal allowance and its only for basic rate taxpayers.

smiths84

I've noticed that some pensions advisers are saying you can get round this if you put some or more of your basic salary into a pension pot - thus bringing your taxable pay below 44,000. Does anyone know if this is true?

picardygirl

Im sorry Jennie65 but you've opened yourself up for criticism on here now ....... you may earn £18k a year but you no doubt get benefits on this wage. So you and your family are not living on an £18k wage!

You've got no debt because you've had it written off, and your kids get (or have got) EMA .... dont even get me started on that one!

Anyway this is completely pointless who gets what, why and because of what etc etc....... the debate is CB, the whole argument is why should someone who pays HRT should have it stopped when a couple on upto £87k income can still get it ! If its going to be stopped, stop it at a certain income like tax credits.

Thats the whole point of this debate, i dont think (correct me if im wrong) that one person who pays HRT has said its unfair we get it stopped, ..... the system is in place for tax credits why not combine the two systems together?

jlpike

smiths84 wrote: »

I've noticed that some pensions advisers are saying you can get round this if you put some or more of your basic salary into a pension pot - thus bringing your taxable pay below 44,000. Does anyone know if this is true?

I certainly hope so as that is my plan. The attached explains

thisismoney.co.uk/pensions/ask-an-expert/article.html?in_article_id=515890&in_page_id=138&expand=true