MSE News: Budget 2012: Child benefit cut partially reversed

JimmyTheWig

unkle wrote: »

I'll be starting a new thread on the mortgage free wannabe board, i'll have paid mine off in 3 years no problem!

But you would have to live seperately to your wife and children. How can you possibly put a price on that?
I hope your wife and children don't read these boards and see how little you value being with them.

Plus, you don't actually have to be living together to be seen as a couple. You wouldn't be able to carry on doing the things that partners do together. You'd actually have to split up.

MF2015

unkle wrote: »

So the discussion tonight can be who is going to move out, do we want another £270k or £477k?

I'll be starting a new thread on the mortgage free wannabe board, i'll have paid mine off in 3 years no problem!

I'd like to say this countries gone to the dogs, however that'd be a bit unfair on dogs......

Just one quick note, you would also have to fund all the living costs of a second house. Didn't think it through did you. :rotfl:

zagfles

JimmyTheWig wrote: »

Ok, so that is your taxable income, isn't it?
I.e. the amount of tax you pay depends solely on your Adjusted Net Income.
I.e. two people with the same Adjusted Net Income will pay the same income tax.
Correct?

Yes, except there is that funny about union/police contributions which I don't understand. Some union contributions are tax deductible (though mine aren't), but it looks like if they are ,they get added back in.

shop-to-drop

MF2015 wrote: »

Just one quick note, you would also have to fund all the living costs of a second house. Didn't think it through did you. :rotfl:

Easy he still has 80% of his 60K wage to support himself with.

zagfles

MF2015 wrote: »

Just one quick note, you would also have to fund all the living costs of a second house. Didn't think it through did you. :rotfl:

I think £26k per year would pay rent and expenses on a nice one-bed flat, with lots left over.

MF2015

shop-to-drop wrote: »

Easy he still has 80% of his 60K wage to support himself with.

How does he have 80% of his £60k wage, when he will pay out over 50% of it in tax and NI alone?

Then he will have child maintenance on top!

unkle

JimmyTheWig, the above post was very much tongue in cheek, i've no intention of moving out (although if my wife see's the numbers involved I may well have my bags packed for me!). Another tongue in cheek comment..... with the size of those benefits I could buy the house next door!

However, your post is actually wrong regarding being a couple etc, all of the benefits I mention are to do with living arrangements, not if you are married or in a relationship. If my wife lived alone with the children, regardless of if she was married to me, or just in a relationship with me or anyone else she would get those benefits and more (I just realised there would also be £1200 worth of free school meals a year). Nobody says just because you are married or in a relationship you have to live together.

I was simply trying to illustrate that despite what government says about families matter etc etc, when it comes to finances we clearly don't. I still reel at a few people I know who chose to split up/divorce and simply because they made that decision the tax payer is funding them (usually the mother) with considerable amounts of money. I knew one couple who split, husband went to America, wife and children moved out of family home (which they owned with no mortgage) to only rent it out at £2,000 a month (expensive part of London) to only be able to receive housing benefit! You couldn't write it!

So a family that decides to live as a family receives nothing from the state, whereas a family that decide not to live together (salary/jobs dependent) get a stack of money...... Does that make sense to anyone?

unkle

MF2015 wrote: »

Just one quick note, you would also have to fund all the living costs of a second house. Didn't think it through did you. :rotfl:

I most certainly did!

i think even with just the £15k per annum I could buy, yes BUY, a £200k home and run it, all paid for by the state, in fact I could rent a room out and make even more!

MF2015 wrote: »

How does he have 80% of his £60k wage, when he will pay out over 50% of it in tax and NI alone?

Then he will have child maintenance on top!

The point is, my current home will still cost the same to run whether i'm there or not (in fact probably less as Sky Sports would go and the food bill would be considerably cheaper!) but there'd be a further £15k minimum income coming in.

You need to remember all the added 'benefits' in these situations, school trips, school meals, school uniform etc etc, my wife would get help with them all!

zagfles

JimmyTheWig wrote: »

Interesting sums if you had 5 children.
One parent earning £50k, the other parent earning nothing.
You'd still get tax credits (£800 a year, I think).
So by earning more you'd still lose 41% of additional income.
And you'd lose 1% of child benefit (£3843) per £100 you earned.

So you'd have a marginal rate of 40% tax + 2% NI + 41% Tax Credits + 38.4% Child Benefit = 121.4%.
Nice!

Yes, this does create anomolies for larger families. Even smaller families could have marginal rates over 100%, eg a single parent with 2 kids and high childcare costs could still get tax credits on over £50k, so the MDR would be just over 100%.

shop-to-drop

MF2015 wrote: »

How does he have 80% of his £60k wage, when he will pay out over 50% of it in tax and NI alone?

Then he will have child maintenance on top!

I'm talking his net wage after tax/NI. 20% goes in maintenance he keeps 80%. Plenty to fund a second home for one. He would probably make savings on travel costs to work too by being able to live closer to his workplace.