Child Benefit for Higher Rate Taxpayers

bigstu82

Does anyone know exactly what the rule is for Child Benefit being lost come 2013?

I'm just below the higher rate threshold; my wife doesn't work (looks after the children). If I'm lucky enough to get any kind of raise or bonus this year (which would be paid in January 2013), then I'll probably be tipped into the higher rate threshold.

My employer offers various methods of effectively cutting my salary, as an "opt-in-salary-sacrifice" benefits scheme, from private medical insurance, to salary-sacrifice-for-cars.

So my question is, really, for the purpose of dodging this limit if need be, using one or more of my optional benefits: is the "you are a 40% taxpayer" bit re-evaluated monthly, or annually? And if so, when is it evaluated? Someone with uneven income might be a 40% taxpayer earlier in the tax year, but come in under the limit at the end of March.

Many thanks!

xylophone

Nothing yet certain.
http://www.telegraph.co.uk/news/politics/9013032/George-Osborne-child-benefit-plans-will-go-ahead.html
http://www.telegraph.co.uk/news/politics/9011492/David-Cameron-signals-rethink-on-child-benefit-cuts.html
http://www.marketoracle.co.uk/Article32631.html

melly1980

Cue the usual bunch of minimum wage morons saying "why do you need child benefit when your on 40K" oblivious to the fact that they themselves are on 35K by the time they have had every handout known to man.

guiriman

Completely understand where you're coming from, some clarity would be nice! I'm due to get a bonus in March, which will put me about £200 into 40% territory, however gift aid and pension contributions mean that on my tax return I'm about £6,000 short of it. Headline with no detail behind it, sounds about right for politicians!

zagfles

They've said they'll announce how they're going to do it in the next few months. Probably in the budget in March.

Naughty_Noonoo

melly1980 wrote: »

Cue the usual bunch of minimum wage morons saying "why do you need child benefit when your on 40K" oblivious to the fact that they themselves are on 35K by the time they have had every handout known to man.

I dont believe the figure of 35k takes into account child benefit and free school dinners/transport/clothing, so depending the number of children in the family this figure of 35k could quite easily reach 45k. Of course if you worked and earnt 45k you would lose your child benefit.

charlieismydarling

Cue the usual bunch of minimum wage morons saying "why do you need child benefit when your on 40K" oblivious to the fact that they themselves are on 35K by the time they have had every handout known to man.

Would that be all people on minimum wage or just those that disagree with your narrow minded viewpoint?

Nice.

Lob-Leg

I find this method of testing for the receipt of Child Benefit completely unfair and lazy. I agree with the principle of cutting costs and that there has to be a limit but with this method there are different limits depending on your circumstances.

I will be writing to my MP to express my displeasure and I hope that others will also do this. If they realise that this is a vote loser, they may see sense and apply the change fairly.

melly1980

Lob-Leg wrote: »

I find this method of testing for the receipt of Child Benefit completely unfair and lazy. I agree with the principle of cutting costs and that there has to be a limit but with this method there are different limits depending on your circumstances.

I will be writing to my MP to express my displeasure and I hope that others will also do this. If they realise that this is a vote loser, they may see sense and apply the change fairly.

the thing is that it will overall be a vote winner because it appeals to the unwashed masses who through their own lack of ambition, drive and an inability to see past their next packet of fags and trip to Benidorm will never see such a salary.

charlieismydarling

I have reported your post melly1980.

Read it again soft @rse

If you can't formulate an articulate reply without resorting to name calling, then perhaps your time would be better spent widening your vocabulary. Are you always so rude to those that disagree with you?

By the way plundered means "To seize wrongfully or by force". Just so you know.

DorsetGirl_2

Melly, you really are a charmer!