MSE News: Child benefit cut to hit 1 million next Monday

robnye

simple question....... regarding child benefit

is that benefit taxabale during tax year 2012/2013 or just from April 2013?

as on HMRC website it gives a taxable amount for 2012/2013, so surely people who have now opted out will still be collared for some tax on benefits paid in 2012/2013

or is it just taxable on what is paid between Jan 2013 and mar 2013

jmnathan

I have calculated that following deductions from my pay for Childcare Vouchers, Pension, Dependent's Pension and Life Assurance I am £2,719 over the threshold, leading to me losing 27% of the Child Benefit payments.

Is it worth me increasing my pension payments from April (the next time I can change it with my employer) to cover this? It works out at £226 a month that would bring me down to a taxable income of £50,000.

TIA

zagfles

outofmoney wrote: »

When we called for info we had it confirmed CB was deducted.

Yes, like I explained above! But you don't lose out because the IS figures include child ben whereas CTC doesn't. IS says "this is what you get in total" and takes child ben off. CTC says "this is what you get without child ben, child ben is on top". But the total is the same.

We were also told that they had no idea whether swapping to CTC would be of benefit to us as they could not access us unless we applied.

So how are you able to say you know exactly how our IS works and what we would get on CTC? I am not being funny, just genuinely interested to know how you have such knowledge when even the ones who deal with it could not tell us.

Well for a start I didn't tell you how much CTC you'd get, because I don't know your circumstances, I gave an example of how they work (for 1 child, no disabilites).

How IS and CTC work aren't top secret, it's all in the public domain, the rules, the rates, the thresholds. etc. It wasn't they couldn't tell you, they were either too lazy or didn't know how to do their job. People here on the benefits forum, including me, tell people all the time how much they'd get in benefits & tax credits.

Or go to http://www.turn2us.entitledto.co.uk and that will tell you.

zagfles

robnye wrote: »

simple question....... regarding child benefit

is that benefit taxabale during tax year 2012/2013 or just from April 2013?

as on HMRC website it gives a taxable amount for 2012/2013, so surely people who have now opted out will still be collared for some tax on benefits paid in 2012/2013

or is it just taxable on what is paid between Jan 2013 and mar 2013

The child ben which will be clawed back this tax year is that paid from Jan. The income used to assess how much will be paid back is the whole tax year's income.

For instance if you earn £55k in the 2012/13 tax year, half the child ben paid from 7 Jan - 5 April will be taken back.

dibbydoos

So question is, I've been made redundant so does my redundant pay count as income? If so even though I haven't got another job yet, we will lose out, thanks to Bill and Ben - who voted these guys in anyway?! I mean Robin Hood I get, but voting in the Sheriff of Nottingham and his side kick is criminal!

zagfles

jmnathan wrote: »

I have calculated that following deductions from my pay for Childcare Vouchers, Pension, Dependent's Pension and Life Assurance I am £2,719 over the threshold, leading to me losing 27% of the Child Benefit payments.

Is it worth me increasing my pension payments from April (the next time I can change it with my employer) to cover this? It works out at £226 a month that would bring me down to a taxable income of £50,000.

TIA

Only you can decide if it's worth it. Work out what the effective tax relief will be, for which you'll need to work out how much child ben you get, and think about it.

SADSAD

The article states...... "Can I help to 'reduce' my income? If you make pension contributions or any type of salary sacrifice (where you put part of your pre-tax salary towards a pension, childcare vouchers or other service) this will reduce your income in the eyes of HMRC, which may make you eligible again if it takes you under the threshold."

I spoke to HMRC on Friday and they told me that I could not use my childcare vouchers which I get through a 'salary sacrifice' scheme to reduce my income in their eyes, just my pre-tax Pension contributions, which is consistent with their web-site information.

Has anyone had a different message from HMRC?

outofmoney

Poppie68 wrote: »

Im sorry but you falling pregnant while taking the pill has nothing to do with your doctor being be incompetent or the prescribed pill not being 'very strong' (no such thing as a strong pill) it's to do with the pill failing which is no ones fault it just happens to some women, no contraception method is 100% safe.

The pill comes in different strengths. If there wasn't we wouldn't have so many types/brands. It is down to the Dr to decide which would be best. Ok, he may not have got it right to start but telling me it didn't work the second time due to hormones being high from having twins and then no explanation for the third time. Yet the midwife and nurse and family planning both stated straight away that I was on a very low dosage pill, not really suitable for someone using it for contraception (usually given to young girls to relieve period pains).

princessdon

outofmoney wrote: »

The pill comes in different strengths. If there wasn't we wouldn't have so many types/brands. It is down to the Dr to decide which would be best. Ok, he may not have got it right to start but telling me it didn't work the second time due to hormones being high from having twins and then no explanation for the third time. Yet the midwife and nurse and family planning both stated straight away that I was on a very low dosage pill, not really suitable for someone using it for contraception (usually given to young girls to relieve period pains).

If you are talking out the Mini Pill - It is not effective UNLESS you follow strict rules of taking same time every single day (even 2 hours lowers efficiency) and never missing or taking with Anti Biotics. It's always made clear when you take it.

zagfles

SADSAD wrote: »

The article states...... "Can I help to 'reduce' my income? If you make pension contributions or any type of salary sacrifice (where you put part of your pre-tax salary towards a pension, childcare vouchers or other service) this will reduce your income in the eyes of HMRC, which may make you eligible again if it takes you under the threshold."

I spoke to HMRC on Friday and they told me that I could not use my childcare vouchers which I get through a 'salary sacrifice' scheme to reduce my income in their eyes, just my pre-tax Pension contributions, which is consistent with their web-site information.

Has anyone had a different message from HMRC?

That sounds like complete rubbish. I'd suggest phoning back and getting someone who knows what they're talking about.

See http://www.hmrc.gov.uk/budget2012/tiin-0620.pdf

The starting point is “net income” which is the total of the individual’s income subject to income tax...

As you're sacrificing salary for a benefit which isn't taxable (assuming you're within the limits for the vouchers) then your taxable income is reduced, and hence so is the income they use for the child ben charge.