We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Higher rate tax
pqrdef
Posts: 4,552 Forumite
Child Benefit is back in the news, though nobody knows what the news is.
Osborne planned to take it away from higher rate taxpayers. The objection was that two parents earning £40K each would get to keep it, and this would be grossly unfair.
Cameron seems to have taken this on board, though other ministers are in the dark.
However, isn't it already a tad unfair that this hypothetical couple don't pay any higher rate tax?
Osborne planned to take it away from higher rate taxpayers. The objection was that two parents earning £40K each would get to keep it, and this would be grossly unfair.
Cameron seems to have taken this on board, though other ministers are in the dark.
However, isn't it already a tad unfair that this hypothetical couple don't pay any higher rate tax?
"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
0
Comments
-
Well, there was a huge backlash against the Prime Minister's idea of treating married couples income as a combined income.0
-
Surely the answer is simple. You prevent any individual who is earning over the Higher rate tax threshold from claiming child benefit. Therefore if a household has a high earner and a low earner (or SAHM/SAHD) then the lower earner claims the child benefit. If both are high earners then neither can claim child benefit.
The reality of the situation is that the current 'halfway house' of certain benefits/tax credits being calculated on combined income, yet taxation being calculated on individual income in untenable.0 -
Isn't that pretty much the original plan? It doesn't do anything about the alleged problem of the 2 x £40K couple.RenovationMan wrote: »Surely the answer is simple. You prevent any individual who is earning over the Higher rate tax threshold from claiming child benefit."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
You pay all tax based on individual income. But for any benefit calculation, joint income is considered (not for child benefit though - which people are shouting about). So when govt. takes tax, you are screwed, when you claim benefit, you are screwed again.
New rule of child benefit is very unfair. Either stop it altogether or pay without considering income.Happiness is buying an item and then not checking its price after a month to discover it was reduced further.0 -
Isn't that pretty much the original plan? It doesn't do anything about the alleged problem of the 2 x £40K couple.
No because it can only be claimed once per family. So if there were 2 higher rate tax payers it would be removed altogether but if there was one higher earner and one lower earner in the family, the lower earner could claim it. However, I don't think it should be cut for any families. It is the only benefit which is universal and should stay that way.0 -
Isn't that pretty much the original plan? It doesn't do anything about the alleged problem of the 2 x £40K couple.
I think that is the current plan yes. If I recall, they looked at the combined income thing but found that it was too complex to administer - especially as these days there are more and more unmarried couples so defining a 'family unit' is harder than ever.
There is an inherant unfairness here but I would be very interested to see who can propose a simple alternative that saves a similar amount in relation to CBGo round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0 -
Isn't that pretty much the original plan? It doesn't do anything about the alleged problem of the 2 x £40K couple.
No the current plan is if one person in a household is a high rate taxpayer then they lose child benefit, regardless of how much the other person earns. This means that if one household has a SAHM/SAHD earning nothing and his/her partner earns £45k, then they lose child benefit. However, if both work and earn £44k each (i.e. a joint income of £88k) then they still receive it.0 -
"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
-
The point about the 2 x £40K couple is that neither is a higher rate taxpayer, because the threshold is above £40K. But they make £80K between them.No because it can only be claimed once per family. So if there were 2 higher rate tax payers it would be removed altogether"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.2K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.2K Work, Benefits & Business
- 603.9K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards