MSE News: Higher rate tax payers to lose child benefit

apcorbett

olderman2 wrote: »

danielanthony wrote: »

The reports say that higher rate tax payers will loose this benefit but the cut off figure banded around is £44,000

£37400 is the figure after deducting Personal Allowance of £6475. £43875 less £6475 = £37400.

That's easy for this year, but does anyone know the final banding for next year, with the amendments for adjusting the personal allowance upwards?

Also, am going to have the pain of being paid 14 times during the next tax year (four weekly paid, with pay on the 6th April 2011 and 4th April 2012), so making it even more awkward to stay under the magical figure...

Lip_Stick

MissMoneypenny wrote: »

From that article

This cut has made a big difference to our lives. We had to relocate to expensive Cambridge for his work – which meant a £230,000 mortgage for a three-bedroom house – and we run two cars as we live in a village and he has to commute 140 miles a day to Ipswich.

Am I missing something here? If losing CB for their 2 children is going to mean that much to them, why don't they move to Ispwich where her husband works which will; save the cost of running two cars; cut their mortgage down as Ispwich is a cheaper area.

I notice she also has a cleaner for 2 hours a week costing £80pm, yet she is a stay at home mum!

I wondering the same thing as you. Also, I'm wondering how on earth, by reading that article, she is expecting people to feel sorry for her???

olderman2

It is obvious that the government cobbled this together for political purposes and did not consider the consequences.

If you are a family with one income of over £43,875 you will lose out unfairly. You have a right to ask the Parliamentary Ombudsman to investigate. I have tried but they refused as I personally do not receive Child Benefit.

If you want to apply send me a blank email to oldman79@live.co.uk. I will send you full instructions. You may not win but it costs nothing to try.

dmg24

olderman2, you cannot publish your email address on MSE. Please remove it from your post. Thank you.

cshakesby

Totally agree with this.
Why should the goverment pay for people to have children. Children are a choice and it is you who should decide wether or not you can afford to have children. It would stop people at the bottom of the scale having anything from 4 - 11 kids just to get more benefits. It is these people who are draining the system. I'm sure you'll find the average couple who earn a good wage and pay alot of tax into the system don't feel the need to have loads of kids.

cshakesby

cshakesby wrote: »

Totally agree with this.
Why should the goverment pay for people to have children. Children are a choice and it is you who should decide wether or not you can afford to have children. It would stop people at the bottom of the scale having anything from 4 - 11 kids just to get more benefits. It is these people who are draining the system. I'm sure you'll find the average couple who earn a good wage and pay alot of tax into the system don't feel the need to have loads of kids.

dmg24 wrote: »

olderman2, you cannot publish your email address on MSE. Please remove it from your post. Thank you.

jlpike wrote: »

Also in the same article

Higher rate of Income Tax to be frozen in 2012-13

The government has announced that the point at which individuals start to pay the higher rate of Income Tax (known as the higher rate threshold) will be frozen in 2012-13 at 2011-12 levels.


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

I agree this is soooooooooo complicated

I guess i dont have to worry about it until the 2012-2013 tax year then pay a lump sum into my pension in march 2012 to make sure im 20%. I should know my p11d and any income such as interest on savings.

Another thing to do is make sure all taxable savings are in Ms JLPikes name.


[The goverment has upped the personal allowence by £1000 pounds, however they have also reduced the 40% threshold by £2000 for the coming tax years o you will be in fact losing £1000.]

cshakesby

Higher rate of Income Tax to be frozen in 2012-13

The government has announced that the point at which individuals start to pay the higher rate of Income Tax (known as the higher rate threshold) will be frozen in 2012-13 at 2011-12 levels.


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

I agree this is soooooooooo complicated

I guess i dont have to worry about it until the 2012-2013 tax year then pay a lump sum into my pension in march 2012 to make sure im 20%. I should know my p11d and any income such as interest on savings.

Another thing to do is make sure all taxable savings are in Ms JLPikes name.

Quote

The goverment has upped the personal allowence by £1000 pounds, however they have also reduced the 40% threshold by £2000 for the coming tax years so you will be in fact losing £1000.

JimmyTheWig

Does anyone know how much of this has been finalised, yet?
E.g. when is it set to come in - April 2013?
Are they still sticking to (and do people think they will continue to stick to) the idea of basing it on a single earner rather than joint income?
Do people think that making pension contributions to take yourself out of the higher rate bracket will be allowed in terms of keeping child benefit?

The question I need to answer is, do I increase my pension contributions now (and benefit from higher tax credits payments) or do I keep them to one side and make the contributions when the child benefit changes come in to force?

zagfles

JimmyTheWig wrote: »

Does anyone know how much of this has been finalised, yet?
E.g. when is it set to come in - April 2013?
Are they still sticking to (and do people think they will continue to stick to) the idea of basing it on a single earner rather than joint income?
Do people think that making pension contributions to take yourself out of the higher rate bracket will be allowed in terms of keeping child benefit?

The question I need to answer is, do I increase my pension contributions now (and benefit from higher tax credits payments) or do I keep them to one side and make the contributions when the child benefit changes come in to force?

Current plan is Jan 2013. I have my doubts it'll actually happen, it's fraught with difficulty particularly independant taxation (which is an "important principle" when it suits the govt!).

The technicalities haven't been sorted yet, so it's unclear whether pension contributions will work to lower income for this - they probably will but something could be put in place to specifically stop this.

The following is interesting reading (well it was to me but I'm a bit sad:)):

http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/SNSP-05732.pdf

The "transferring CB to a grandparent" dodge is one I'd not heard before!

JimmyTheWig

Thanks, zagfles. Very interesting, though I couldn't read it all due to time.

Your theory of doubt suggests I increase pension contributions now as I may well not benefit from the increase in 2013.
Does anyone else have any thoughts?