MSE News: Budget 2012: Child benefit cut partially reversed

scott7saunders

does the threshold go against my basic salary of total salary as my basic is only £20K however I earn commission and bust my butt to boost my earnings.

Before tax I am looking at £58k this year with which is made up massively of my commission....I know that I am not going to do that again this year?

I take it that I am going to lost my CB for our 7 kids...the wife doesnt work and is a full time mum claiming no benefits other than CB?

anyone offer some help?

Cheers

shop-to-drop

This doesn't make this any more fair IMO. In fact now a household can have two 50K incomes and still retain full child benefits whereas one earner of £60K would lose it entirely. The whole system sounds like an expensive nightmare to administer too.

JimmyTheWig

shop-to-drop wrote: »

This doesn't make this any more fair IMO. In fact now a household can have two 50K incomes and still retain full child benefits whereas one earner of £60K would lose it entirely. The whole system sounds like an expensive nightmare to administer too.

It does make it more fair.
By making it taper rather than having a straight cut-off makes it much more fair.

AirlieBird

The income tax system is based on individuals and does not know who your partner is. The Child Benefit system only knows who is claiming Child Benefit and does not know who your partner is. So how exactly do they think they are going to identify a Child Benefit recipient's partner who earns above £50k?

shop-to-drop

JimmyTheWig wrote: »

It does make it more fair.
By making it taper rather than having a straight cut-off makes it much more fair.

I disagree

melly1980

shop-to-drop wrote: »

I disagree

on the grounds of what

shop-to-drop

Tapering it doesn't make it any more fair or any less unfair.

melly1980

shop-to-drop wrote: »

Tapering it doesn't make it any more fair or any less unfair.

Its fairly obvious that a system that removes a benefit in proportion to how far you are over the boundary is inherantly more fair than one which removes everything the second you go a penny over the cut off point.

Any other perceived unfairness is present in both the tapered and un tapered proposal (ie combined wages etc). The taper has removed one level of unfairness.

anguk

Gaspode wrote: »

interestingly they were capable of basing child tax credit on household income, but child benefit is too difficult to calculate in the same way....

True, it's the same with any income based benefit they base it on household income, I don't know why they can't do that with Child Benefit too?

xylophone

jenfa wrote: »

As a result of my husband's pay we will lose the child benefit even though I don't work. What I am interested in is the credit that I thought I received by claiming child benefit against my National Insurance premiums that I can't pay because I am bringing up a child. I am sure when we originally applied for CB this was included does anyone know what will happen to those?

If I asked my husband's bank or employer how much he earned they would say that is confidential but the child benefit is in my name so I'm not sure how this is going to be administered because he does not have to tell me how much he earns.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/DG_183760

The government recently announced changes to who can claim Child Benefit. The full implications of the change, including how to make sure that those affected continue to receive credits towards their State Pension, are being considered. Further information will become available in due course.