MSE News: Higher rate tax payers to lose child benefit

keithnic_2

Badger_Lady wrote: »

Okay, so now I'm seeing a pattern.

The only solid objection that anyone has here is, "but they'll be better off than me! They'll get CB while I won't! They get other benefits I'm not entitled to!".

Can anyone affected honestly say, "this is going to change our lifestyle significantly, and put pressures on whether I can continue to feed and clothe my children"?

If we stop worrying about everyone else and just look at our own circumstances, in a time of recession when money is scarce, will we be OK? I suspect so.

When you earn a higher amount of money, it's very easy to get accustomed to it and to adapt your lifestyle to fit. To those who dream of one day earning over £20k yes, we are rich. And you know what? It's not that wildly inaccurate. I appreciate the fact that my wage pays for me to live in a house of my own. I appreciate that I can accept social invitations without hesitating. I appreciate that I can give myself little luxuries here and there, and that I don't constantly have a nagging worry about how I'm going to pay for them. We might not be drinking champagne every night and we might see ourselves as "normal" but hell, if my wages had to be halved for the good of the country I'd find a way to cope with it.

I'm not about to end up on the streets starving to death if I lose £2k a year. Please tell us about it if you are.

I think you're missing the point here completely. Most people's objections are the fact that a household with one earner with salary over £44k will not receive CB, whilst another with two earners could earn up to £88k and still receive CB. This is blatantly unfair!

Lets get rid of CB. Lets have one agency that decides on your circumstances and whether you need to contribute to running the country or whether you need some help. How much bureaucracy would that save?!

Lets have a fairer taxation system so that the more earn you progressively pay more tax. Gradually! Not one which penalises you for going £1 over a threshold and you lose thousands of pounds in one fell swoop. I cannot believe that this Government will implement their suggested changes as they are now.

julie2710

Badger_Lady wrote: »

Okay, so now I'm seeing a pattern.

The only solid objection that anyone has here is, "but they'll be better off than me! They'll get CB while I won't! They get other benefits I'm not entitled to!".

Can anyone affected honestly say, "this is going to change our lifestyle significantly, and put pressures on whether I can continue to feed and clothe my children"?

If we stop worrying about everyone else and just look at our own circumstances, in a time of recession when money is scarce, will we be OK? I suspect so.

When you earn a higher amount of money, it's very easy to get accustomed to it and to adapt your lifestyle to fit. To those who dream of one day earning over £20k yes, we are rich. And you know what? It's not that wildly inaccurate. I appreciate the fact that my wage pays for me to live in a house of my own. I appreciate that I can accept social invitations without hesitating. I appreciate that I can give myself little luxuries here and there, and that I don't constantly have a nagging worry about how I'm going to pay for them. We might not be drinking champagne every night and we might see ourselves as "normal" but hell, if my wages had to be halved for the good of the country I'd find a way to cope with it.

I'm not about to end up on the streets starving to death if I lose £2k a year. Please tell us about it if you are.

Well I for one may end up, with my two small boys on the streets if I lose £2K per year! My budget is tight to say the least. I don't give a damn what other people do or don't get, can or can't afford all I care about is providing a life for my boys and thanks to the government that may not be possible for much longer unless I just go on benefits and let everyone else pay for everything! At least that way I won't lose my home!!!!

murraymint1976

that's exactly the point I made, the government already collect our salary information from the child tax credits forms, why on earth can this not be used to assess child benefit as well???

ajaxgeezer

Where are you Julie? I'm not picking a fight or anything (honestly!), but a friend of mine is on exactly the same salary as me (just under 21k - I'm not coy) and manages to pay her mortgage on her house, bills, feed/clothe her kids and live a decent(ish) lifestyle. I know she gets some government tax credits to top up her salary, but it sure as hell doesn't amount to the nett equivalent of £23k gross. We are in the West Midlands. It's a deprived area, but if she can do it, I'm wondering what the differences are.

Kitten-B

Naughty_Noonoo wrote: »

Mr Cameron mocked the last government for placing a tax on jobs when the 2% (currently 1%) NI rate was announced......it's funny how since being elected he has opted to implement this policy................ but isn't that a tax on jobs Mr.Cameron?

Oh and they promised to keep Child Benefit for all......hmmm!

Don't get me wrong, I have contempt for all politicians, I just wish that sometimes they would say it for real 'we lied' or ' we cannot deliver on our promises'. Instead they choose to treat the general population as idiots.

I thought that was ridiculous too.

But to be fair he did away with the 1% increase in EMPLOYER'S NIC. This was the true tax on jobs - ie: the tax that made it more expensive for an employer to employ someone. The increase in employee's NIC that remains is just another form of plain old income tax.

jlpike

Badger_Lady wrote: »

Okay, so now I'm seeing a pattern.

The only solid objection that anyone has here is, "but they'll be better off than me! They'll get CB while I won't! They get other benefits I'm not entitled to!".

Can anyone affected honestly say, "this is going to change our lifestyle significantly, and put pressures on whether I can continue to feed and clothe my children"?

If we stop worrying about everyone else and just look at our own circumstances, in a time of recession when money is scarce, will we be OK? I suspect so.

When you earn a higher amount of money, it's very easy to get accustomed to it and to adapt your lifestyle to fit. To those who dream of one day earning over £20k yes, we are rich. And you know what? It's not that wildly inaccurate. I appreciate the fact that my wage pays for me to live in a house of my own. I appreciate that I can accept social invitations without hesitating. I appreciate that I can give myself little luxuries here and there, and that I don't constantly have a nagging worry about how I'm going to pay for them. We might not be drinking champagne every night and we might see ourselves as "normal" but hell, if my wages had to be halved for the good of the country I'd find a way to cope with it.

I'm not about to end up on the streets starving to death if I lose £2k a year. Please tell us about it if you are.

Lose £2000 a year - I won't be able to have truffle and foie gras on toast for breakfast anymore.;)

This augument is about the reduction in CB not about people jellous about what others earn. If someone goes to university then does professional qualifications to do a very stressfull skillfull job requiring to be away from home lots they should earn a good salary.

I hate it when people moan about others in this way. If you don't like your lot in life do something about it, getting all upset becuase the neighbour has a new car is not going to make it happen for you. Work hard and make the right choices and good things will happen. Everyone has a choice in life and we live in a capitalist society.

Everyone wants more in life and there is nothing wrong with that and there is nothing wrong with people feeling !!!! that they are £2000 worse off especially when it is being implemented in an unfair way.

Remember if you have 3 kids you lose £2500 tax free which is equivilent of £5000 salary. Even on £50k that is 10%.

Who wants a 10% pay cut.

Kitten-B

jlpike wrote: »

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

Definitely the case (under current rules anyway). And it is what anyone on the borderline will do - wonder has George O calculated that is his £1bn savings? Somehow I doubt it; have an inkling he's not the sharpest tool in the box.

I think it will work with buying childcare vouchers too - that can push your gross salary down by the max of £2,916.

The part I hate the most about Georgie's idea is the ridiculous marginal rate of 'tax'. Why would anyone accept earning £1 more (58p net) will lose you an average of £1,700 (based on 2 kids) a year? It's nonsensical - especially when the pension scheme / childcare vouchers is an easy fix.

It's a sloppy immature plan.

jlpike

Kitten-B wrote: »

Definitely the case (under current rules anyway). And it is what anyone on the borderline will do - wonder has George O calculated that is his £1bn savings? Somehow I doubt it; have an inkling he's not the sharpest tool in the box.

I think it will work with buying childcare vouchers too - that can push your gross salary down by the max of £2,916.

The part I hate the most about Georgie's idea is the ridiculous marginal rate of 'tax'. Why would anyone accept earning £1 more (58p net) will lose you an average of £1,700 (based on 2 kids) a year? It's nonsensical - especially when the pension scheme / childcare vouchers is an easy fix.

It's a sloppy immature plan.

100% agree - This is one of the craziest idea's ive ever heard how can they make it so your WORSE off the more you earn.

I will get round this by doing what you say above so i'm genuinely not looking at this from a selfish perspective. It is just the principle of what they are doing just makes no sense and makes me so angry.

I have not heard a single politician answer the questions put to them yet and I have not heard the right questions asked. Everyone is concentrating on the single mother with 3 kid’s scenario which is certainly unfair but nobody is discussing the marginal rate issue.

I really can’t believe they will do it in this way – Going to work trying harder and earning more even if HMRC take most of it away in tax at least you will get something. Not with this!!!

Even if they put the upper tax limit to 90% from 40% at least I would get 10% of any an additional pay increases and the tax man would get 90% o pay for people in need. With this your salary goes up until you hit 44k then effectively goes down £5k and you will not be back to where you where again until you earn around £49k

shop-to-drop

Kitten-B wrote: »

I think it will work with buying childcare vouchers too - that can push your gross salary down by the max of £2,916.

A few months back there was something about stopping childcare vouchers wasn't there?? We have never used them, wish we had looked more into it previously will certainly use in the future if still available.

jlpike

shop-to-drop wrote: »

A few months back there was something about stopping childcare vouchers wasn't there?? We have never used them, wish we had looked more into it previously will certainly use in the future if still available.

As afr as I know they have changed thier minds. It was Labour who where going to do this. Another strange decision.

"Lets remove this tax loophole and make everyone pay more" Great Idea, I think not.

But the effect will be everyone stops work to look after kids because after childcare there is no point in doing a 9-5 for £5 in wages a day. At least the salay sacrifice childcare vouchers allow you to save 30-40% on childcare costs due to reduced NI and tax.

£45 per day child care you need a very good job before it pays to go to work after they take off tax and NI.