MSE News: Higher rate tax payers to lose child benefit

pepe2008

It's a good idea but I can't work out whether it is a rushed announcement to have something to say at conference or that actually , by 2013, they will get their fingers out and have ONE 'means testing' form per household upon which all benefits can be based.
That may also help in reducing fraud .

surfbabe10

sh1305 wrote: »

But why should you get something because you have kids, yet someone who can't have kids, won't? Children are a lifestyle choice.



Er, downsize then? A big mortgage is a choice.

Errr! Downsize! We have got 2 kids and a small 3 bedroom house! Mortgage is high due to the city we live in having one of the highest property prices in the country! You make it sound like we live in a mansion!

Fran

surfbabe10 wrote: »

I have a friend who is a single parent, she earns almost £20.000 a year, gets around £200 a month housing benefit, even more in tax credits and £200 from CSA. Thats not including child benefit.

Housing Benefit is income based and it is highly unlikely that in most situations someone on £20K (plus the extras you mentioned) would receive any benefit. However there are exceptions to general rules, but I would be wary of "facts" where people "know someone who..." or "have heard of someone who..." or "apparently". Most of us do not have access to others' financial situations.

WestonDave

For those on the margins one MSE way round this is to make additional pension contributions - that way you still keep the money you've earned (albeit put away for later) and you keep the benefits so in effect the CB goes on pension contributions. Same applies to additional charity donations under gift aid but obviously that doesn't involve keeping the money. Either will reduce taxable income and allow people to drop back into basic rate taxes.

Indie_Kid

surfbabe10 wrote: »

Errr! Downsize! We have got 2 kids and a small 3 bedroom house! Mortgage is high due to the city we live in having one of the highest property prices in the country! You make it sound like we live in a mansion!

Are you forced to live in that city? What's wrong with the children sharing a room?

Badger_Lady

liz-paul wrote: »

My husband is a higher rate tax earner & I earn nothing looking after our children. We are certainly not 'Rich' & have to budget for everything. We are going to struggle to replace the child benefit we will lose in 3 years time & one of the things that it currently pays for is payments into the kids CTFs which will probably have to stop. This is highly unfair imo; we have both worked hard & continue to work hard to have what we have & constantly we are being given the message that the harder you work for things you more you will have taken away from you. If my husband moved out & moved in with his mother then we would be so much better off financially. Isn't that the kind of message the government is trying to change?

But you're comfortable enough that you can choose not to earn an income... I'm not disputing the amount of time and dedication that being a parent requires, but there are plenty of people out there that can't afford that choice. And let's face it, £2,000 a year isn't difficult or time-consuming to earn. You could do it from home or for a few hours a week while the children are at school (assuming they'll be of school age in 2013).

I'm afraid I can't have sympathy for two-parent families with one income over the higher tax threshold. My sympathies are reserved for the single parents who both HAVE to work full-time and raise their children alone with no benefit entitlement.

PamVegas

Another unfair cut brought in by this government. We will lose our child benefit as my husband is a high rate tax payer but I have took a considerable cut in salary to enable him to do the work he does as he is away for his work. Yet again they choose to take into account partners earnings when it suits them. I would be better off if OH moved out and I claimed benefits, and can imagine a fair few families might choose this option when this comes into effect.

Indie_Kid

liz-paul wrote: »

I earn nothing looking after our children.

Why should you get money for a choice? You've chosen to stay at home to look after your children.

EvieSaver

THRIFTY_GIRL wrote: »

Talking about simplifying the system, why not combine Child benefit with Child Tax credits? That way the benefit could at least be tapered and there would be no need for a new system. This would also remove the unfairness resulting from whether there is one income earner or two. Savings would be made by getting rid of child benefit altogether, renaming it as an extension to the tax credits system.

Completely agree with you here - I was thinking the same.

My problem is my OH earns about £1000 over the higher tax limit, which after the 40% deduction is a bring home amount of £600 yet we will loose £1700 in child benefit. I've heard in the past that charity donations can be made direct from a persons salary does any one know if this is deducted from the taxable amount?, if so and our situation is still the same in 2013 we will be better off donating a £1000 to charity (£600 to us) and receiving £1700 in CB instead.

surfbabe10

sh1305 wrote: »

Are you forced to live in that city? What's wrong with the children sharing a room?

We are hardly likely to move house, leave the city, leave our jobs and change schools just because child benefit been cut! I am putting my opinion forward that I think its unfair and the government targets hardworking people and other people seem to get money thrown at them. It just means that both of us will just have to work even harder to make up for the lost money.