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

outofmoney

princessdon wrote: »

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.

No, I wasn't on the mini pill. I was on the combined pill, and if you google it you will see there are many types each with different strengths. I was not some young kid, and was fully aware of problems with Anti Bs even though my Dr failed to mention all that to me. We just happened to have a very bad, couldn't be bothered Dr.

I am no longer with him due to moving but My Mother is. He has actually got worse and now does all his diagnosing over the telephone in 5 minute calls. In fact all but one of the Drs at his practice do. I know that 2 of the Drs were going to be sued for mis diagnosis due to not actually seeing their patient. Sadly both these people never lived long enough to take the matter further.

daleos

HappyMJ wrote: »

Gross salary. There are plenty of ways to reduce your gross salary to below £50,000 if you want to. For example contributing to a pension will be much more profitable as you get to keep full child benefit as well as legally avoiding a lot of tax. Contibuting to a pension will be worth at least double your after tax contribution. Never mind that the mortgage will last a few years longer...It will be worth it even if you use your pension lump sum to pay the final payment. A company car might be an idea.

Now I am confused !!, I thought I read previously that if you paid into a company pension you could reduce your income in the eyes of HMRC, If this is the case then surely it is taxable pay ???
Another thing, What if you pay into a company share incentive plan ?, does this also reduce my income in the eyes of HMRC.

GRATEFULL OF THE HELP !!

SADSAD

zagfles wrote: »

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

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.

Many thanks zagfles. I spoke with HMRC again today and this time they told me I could take my childcare vouchers into Account in calculating my Adjusted Net Income (and my Share Incentive Plan) :T

a-ztech

Wondering if I am reading this right...
"Adjusted net income is calculated in a series of steps. The starting point is “net income” which is the total of the individual's income subject to income tax less specified deductions, the most important of which are trading losses and payments made gross to pension schemes. This net income is then reduced by the grossed-up amount of the individual's gift contributions and the grossed-up amount of the individual's pension contributions which have received tax relief at source. The final step is to add back any relief for payments to trade unions or police organisations deducted in arriving at the individual's net income. The result is the individual's adjusted net income."

Does this mean if I set up a business which happens to make a loss I can write that off against my salaried income?

a-ztech

Also is Gift Aid taken into account?

Have found an answer at ww w gov.uk/child-benefit-tax-calculator
(not allowed to post links)


Looks like losses and gift aid are both taken into account.

zagfles

a-ztech wrote: »

Wondering if I am reading this right...
"Adjusted net income is calculated in a series of steps. The starting point is “net income” which is the total of the individual's income subject to income tax less specified deductions, the most important of which are trading losses and payments made gross to pension schemes. This net income is then reduced by the grossed-up amount of the individual's gift contributions and the grossed-up amount of the individual's pension contributions which have received tax relief at source. The final step is to add back any relief for payments to trade unions or police organisations deducted in arriving at the individual's net income. The result is the individual's adjusted net income."

Does this mean if I set up a business which happens to make a loss I can write that off against my salaried income?

Yes, if it's genuinely a business that you intend to make a profit from. If it's something never intended to make a profit (eg a hobby) then obviously not.

zagfles

a-ztech wrote: »

Also is Gift Aid taken into account?

Have found an answer at ww w gov.uk/child-benefit-tax-calculator
(not allowed to post links)


Looks like losses and gift aid are both taken into account.

Yup gift aid counts too, but if you're a higher rate taxpayer you should already be claiming for your gift aid.

Naughty_Noonoo

daleos wrote: »

Now I am confused !!, I thought I read previously that if you paid into a company pension you could reduce your income in the eyes of HMRC, If this is the case then surely it is taxable pay ???
Another thing, What if you pay into a company share incentive plan ?, does this also reduce my income in the eyes of HMRC.

GRATEFULL OF THE HELP !!

If you earn 51000 and from that you pay 1000 into a pension (either direct from your salary or via a private pension) then HMRC treat your earnings as 50000 and income tax is then deducted based on 50000 (hence your taxable income).
When you pay into a pension direct from your salary (like a company pension or regular additional contributions on top of a company pension) then you do not need to tell HMRC because your company payroll systems effectively act as a tax collector. However, if you make contributions to a private pension (paying by direct debit, cheque or even cash for example) then you must advise the HMRC about these contributions (by using the self assessment process) so that the figures they are already aware of from your employment can be adjusted accordingly.

I have paid extra into my company pension scheme to reduce my taxable income and therefore not lose the child benefit. Of course by doing this on one hand I will be better off in 22 years time when I hopefully retire. However, on the other hand I am actually reducing my disposable income right now so as a result the money I would have spent in shops has now gone (not ideal for a struggling economy).

I am not sure about contributions to the company share scheme, I doubt they are classed in a similar way to pension contributions (but I do not know for sure).

ILW

zagfles wrote: »

Yes, if it's genuinely a business that you intend to make a profit from. If it's something never intended to make a profit (eg a hobby) then obviously not.

Are you sure.
My understanding is that SE losses cannot be offset against salaried income from a separate venture.

AgentOso_2

Sorry if I sound like an idiot...

Why are people stopping accepting child benefit now? Is it not calculated per financial year, i.e. April 2013 to April 2014 or are they taxing people for April 2012 to April 2013.

Oh and I have no letter... where does that leave me? Am I supposed to just scurry about and try and find the info (as I have been doing on the website)