MSE News: Chancellor: child benefit cut will go ahead

Js_Other_Half

I believe that a lot of adults, even ones that are married or in civil partnerships, have separate tax allowances and finances. How are the government going to prove that a higher rate tax payer KNOWS that a lower rate tax payer in the household claims CB?

zagfles

Js_Other_Half wrote: »

I believe that a lot of adults, even ones that are married or in civil partnerships, have separate tax allowances and finances. How are the government going to prove that a higher rate tax payer KNOWS that a lower rate tax payer in the household claims CB?

Yes, this one of the many problems with this plan. Taxation is supposed to be "independant". Asking about other people's income on a tax return is something which violates the supposed important principle of independant taxation. Gordon Brown had to abandon his similar plan a decade ago because of this. Politicians don't seem to learn from history!

As I've written before on this forum I don't think this will go ahead as planned. It's just too hard, and will cost a lot to implement and police. They'll do something else which has a similar effect on a similar group, just like Gordon Brown did (the Children's Tax Credit). They might divert some of child benefit into tax credits. They might lower the 40% tax threshold. Those are easy.

We'll see in the next few months...

Mark148

Why should the government 'award' people tax payers money for having children. If it is to be stopped then it should be stopped for ALL. It is a choice to have a child and if you can't afford too then reconsider your options.

The benefit system is the Achilles heel of this nation and the sooner it is sorted out the better. Since when should people be reliant on benefits. They are there to help only for a short period of time, not an eternity.

If you are in receipt of benefits then you should not be able to afford alcohol, fags, mobile phones, fast food, plasma tv's and cars. It should be there to keep your head above water and give you a reason to get out of bed every morning and find a job.

Yeah life at the moment is hard but the state owes you nothing and people need to dry there eyes and crack on.

I by no means mean to offend those who are genuinely in receipt of benefits, just those scroungers masquerading as decent citizens.

WhiteHorse

Mark148 wrote: »

Why should the government 'award' people tax payers money for having children.

As long as the state pays a salary for having children, there will be career single mothers.

If you can't feed 'em, then don't breed 'em.

Dorastar

And these are exactly the people who are keeping all their Child Benefit while those of us who work lose ours.

Nicky_H_2

If they were able to produce a list of total income of COUPLES with child(ren), ie families getting CB, they could have a fairer system or withdrawing CB. BUT... I gather from snippets I have heard on radio/tv that they can't produce this information - they don't look at couples's income from the tax point of view since (presumably, don't quote me) they scrapped allowances relating to married couples? I despair of understanding at all - tax credits baffled me, taking money off my hubby then paying it into a bank account in my name...?? WHY??

(I don't mean to exclude lone parent families above, I'm just saying they only seem to want to make a decision on a single higher earner in a household, which is grossly unfair).

When I was little my Mum's tax allowance was used by my Dad for the duration of her being a full time Mum. I have been a full time Mum and my tax allowance has been *wasted* - one of several ways in which I feel devalued as the best carer for my children - Government would rather a friend and I were registered child minders and looked after each other's children. Ridiculous.

Child Benefit helps us with our children and we do without many things, living within our means while I have looked after my children. Now I am able to work part time as they are a bit older but I can't use the last 10 years of tax allowance, and losing the CB (which we would) means my part time income will largely cover the shortfall when we lose CB.

I think CB should be left alone and extra-higher earners taxed more with another tax band, then that doesn't penalise children.

just my 2 cents...
Nicky

ribit

clearingout wrote: »

so....take away the benefits for a hard working single parent but leave them in place for a hardworking 'family'? how on earth can it be right that a two-parent family can earn £80k and still receive child benefit but the single parent loses it?

Or is that something to do with the expectation that the single parent family also receives maintenance so that's OK?

Too right

I am single parent earning just over the threshold.

I pay £800 per month in child care costs and recieve next to no tax credits due to my income.

Receive negiligable maintenance payment occasionally.

So losing another £100+ per month in child benefits doesn't seem right.

I contribute to economy in tax and by working, why should I loss yet more money just because I pay higher rate tax on a fraction of my income, where others earning less do not? Or even not working at all don't?

JimmyTheWig

Hear hear, Nicky H.
Great first post.

Mrs_Arcanum

Where someone is paying in to a pension and other pre taxable payments how does the tax man work out taking things away. After all, they ask for gross wage figures when in reality this is not the amount you are taxed on.

zagfles

Mrs_Arcanum wrote: »

Where someone is paying in to a pension and other pre taxable payments how does the tax man work out taking things away. After all, they ask for gross wage figures when in reality this is not the amount you are taxed on.

Employer schemes usually deduct pension conts from gross pay so your taxable/P60 pay is lowered. Personal pensions you can declare on the tax returm and they'll extend your basic rate band, taking you completely out of higher rate tax if you contribute enough, as I'm sure a lot of people on the borderline will if this goes ahead...