Losing Child benefit

tyllwyd

If you want to see where you fit in, there is a calculator to work out where your household is in terms of your income compared to the general population. (But remember to put in your net income not gross.) But this comes from before the child benefit changes, which I would expect would knock a family like the OPs down the scale noticeably.

http://www.ifs.org.uk/wheredoyoufitin/

MissMoneypenny

FBaby wrote: »

I believe before any pension contribution or childcare vouchers, they would pay in tax apprx £19K a year, so take away the £4,500 he gets for CB, that's still a contribution of over £15K.

The most tax paid on 60k, will be 14K plus NI of 4.5K. Less tax than that if they make pension contributions (which most do) and then take childcare vouchers. Then they take 4.5k back in child benefit for their 6 children.

We also don't know if his wife works too or whether OP is SE. All we really know is that they have 6 children and OP earns 60k.

MissMoneypenny

tyllwyd wrote: »

I wonder how the figures would look if you had student loan repayments to make as well?

On 60k it won't take long to pay back student loans. With 6 children, I'm guessing the OP isn't that young and will already have paid off their loan?

Murgatroyd21

pjread wrote: »

Some of us have both, especially in the south. Try the sums with a £5k travel cost on top (no, not tax deductible) and you'll find 50-60k salary with 3 or 4 children comes pretty much to the same actual net income as shelf stacking on minimum wage for 16 to 24 hours a week.

Min wage, 16 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £16,122, dependant on minimum pension at end of work life (probably 67)

£50k, 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £38,227, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance.

£60k 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £41,578, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance. Or if they increase pension by £10k per annum can still get CB and have much greater pension position and choice.

Minimum wage earner limited, if any choice, in housing area, and no financial gain for children at end of life. Housing costs remain constant/increase with time.

£50k & £60k, choose area to live, equity in home at end of mortgage which can be left to children or released by moving to smaller property, mortgage reduces over time.

This is for the 2012/13 year and haven't added the cb to £60k that would be payable to Jan NY.

Still know which position I'd rather be in.

Blue22

Murgatroyd21 wrote: »

Min wage, 16 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £16,122, dependant on minimum pension at end of work life (probably 67)

This is only so low because you are calculating on 16 hours at minimum wage, from April a couple need to be working 24 hours. Please redo the calculation for 24 hours.

Thankyou

anguk

tyllwyd wrote: »

If you want to see where you fit in, there is a calculator to work out where your household is in terms of your income compared to the general population. (But remember to put in your net income not gross.) But this comes from before the child benefit changes, which I would expect would knock a family like the OPs down the scale noticeably.

http://www.ifs.org.uk/wheredoyoufitin/

Just done us and apparently we're in the 1st decile group which is the poorest 10% of the population. It's not very comprehensive though, it only takes into account your income and how many people are in your home.

I've just done it again and if I kick my husband or daughter out I'll be in the 2nd decile!

mealone

anguk wrote: »

Just done us and apparently we're in the 1st decile group which is the poorest 10% of the population. It's not very comprehensive though, it only takes into account your income and how many people are in your home.

I've just done it again and if I kick my husband or daughter out I'll be in the 2nd decile!

same here, we have a higher income than 3% of the population.

melly1980

Murgatroyd21 wrote: »

Min wage, 16 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £16,122, dependant on minimum pension at end of work life (probably 67)

£50k, 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £38,227, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance.

£60k 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £41,578, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance. Or if they increase pension by £10k per annum can still get CB and have much greater pension position and choice.

Minimum wage earner limited, if any choice, in housing area, and no financial gain for children at end of life. Housing costs remain constant/increase with time.

£50k & £60k, choose area to live, equity in home at end of mortgage which can be left to children or released by moving to smaller property, mortgage reduces over time.

This is for the 2012/13 year and haven't added the cb to £60k that would be payable to Jan NY.

Still know which position I'd rather be in.

nice fudging of the figures to get below the 24hr cut off point.

I will adjust it for you, the minimum wage person despite doing 24 hours compared to the others doing 37hrs will come away with just short of 23K Nett

So under like for like conditions (3 kids etc)

7.5K turns into 23K
50K turns into 31K

Im sure that those 50K earners really feel rewarded at all the extra hours (extra on top of the 37) and the responsibility of a 50K job and (as is often the case) the extra studying and so on.

his_wife

my husband earns £60.000 on paper, yet in reality its nowhere near, he pays 20,000 a year or there abouts in tax, he also pays 8000 a year in ni contributions, then of course, there is travelling back and forth, he works other end of country, oh he also pays at the minute just short of 9,500 year in csa payments. So now tell me thats a lot of money to live on, we also have four other children to support (mine not his). So when i loose my child benefit next year, it will be my children going without.

We obviously, receive no other benefits, so we have to pay, dental, nhs prescriptions, optician fees etc. Beleive me, the lower earners, probably earn more than us, and are more better off, as they will still qualify for tax credits, etc.

FBaby

Murgatroyd21 wrote: »

Min wage, 16 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £16,122, dependant on minimum pension at end of work life (probably 67)

£50k, 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £38,227, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance.

£60k 37 hrs, 3 kids, total net (including tax credits & cb) before having to pay transport, housing, food etc = £41,578, various pension benefits dependant on scheme, potential to choose retirement dependant on pension scheme performance. Or if they increase pension by £10k per annum can still get CB and have much greater pension position and choice.

Minimum wage earner limited, if any choice, in housing area, and no financial gain for children at end of life. Housing costs remain constant/increase with time.

£50k & £60k, choose area to live, equity in home at end of mortgage which can be left to children or released by moving to smaller property, mortgage reduces over time.

This is for the 2012/13 year and haven't added the cb to £60k that would be payable to Jan NY.

Still know which position I'd rather be in.

Really....what you are saying is that the guy who only works 16 hours has a proportionate net income similar if not higher than the one who earns £50K if you consider that the latter works full-time...and you think this is right??????? The guy who earns £50K must have gone to Uni, repaid loans, works longer hours than contracted for and is much likely to have to travel further away to get to his job and see much less of his kids. As for the house going to the kids, yep right, more like it will all go to pay for nursing care anyway...

It's figures like this that are horrifying.