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

AgentOso_2

AgentOso wrote: »

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)

Found the answer to one part:

"The new regime is an 'earn now, pay later' system. If you collect child benefit in the 2012/13 tax year when the change happens, you must declare your 2012/13 income by 31 January 2014, at which point the tax will be due. "

Still not sure why you wouldn't collect the Jan, Feb and March payments if its per tax year?


I'm fairly up to date with the news etc and I found out about this January deadline on the day from browsing this site! No letter from HMRC, nothing!

This is mind numbing!

zagfles

ILW wrote: »

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

See the link I posted above - it mentions this is one of the "adjustments" in "adjusted net income".

zagfles

AgentOso wrote: »

Found the answer to one part:

"The new regime is an 'earn now, pay later' system. If you collect child benefit in the 2012/13 tax year when the change happens, you must declare your 2012/13 income by 31 January 2014, at which point the tax will be due. "

Still not sure why you wouldn't collect the Jan, Feb and March payments if its per tax year?

Anyone collecting child ben with an income over £50,000 will need to do a tax return if they collect child ben from Jan- March. If they opt out before they don't. Income used to assess is per tax year, but only child be from Jan 13 will be clawed back. As I said above.

I'm fairly up to date with the news etc and I found out about this January deadline on the day from browsing this site! No letter from HMRC, nothing!

This is mind numbing!

It's been in the news for the last 2 years that the start date will be Jan 2013!

daleos

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.[/QUOTE]

Zagles - As I am sacrificing salary for the company share incentive plan which isn`t taxable, my taxable income is reduced, therefore, are you suggesting that HMRC will use this for the child benefit charge ?

zagfles

daleos wrote: »

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.

Zagles - As I am sacrificing salary for the company share incentive plan which isn`t taxable, my taxable income is reduced, therefore, are you suggesting that HMRC will use this for the child benefit charge ?

See above, I'll repost:

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...

daleos

SADSAD wrote: »

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

Thankyou for that, why are HMRC not forthcoming with this information. I have been trying to get a clear answer on the "share incentive plan" for days now. This puts me under - just...:j

zagfles

bloolagoon wrote: »

Is there a limit to Pension Contributions. We were discussing at work the options of using this work around and someone asked. The husband earns £90,000 approximately. They do have childcare vouchers but the value is small as his wife does not work so this is purely for socialistation. Would they be allowed if financially able to place such a vast amount into his pension.

£50,000 which includes the value of employer contributions. If it's a final salary scheme this is quite hard to work out - the scheme should be able to tell you or in might be on the annual statement.

You can carry forwards unused allowance for previous years (think 3 max).

It's going down to £40,000 in 2014.

Also would the NHS pay more pension contributions if he paid more or does their contribution end with the maximum they now contribute.

See the plan booklet. Probably not.

The_Governor

I checke dmy bank account today and noticed that a child benefit payment of £67.50 has been paid... that's approximately half the usual amount, although I was epxecting nothing as we opted out and got a letter confirming that on the 7th December.

I'm just wondering if it is some sort of "final balance" payment to account for odd weeks or something before the final cut off?

chemical.galaxy

The_Governor wrote: »

I checke dmy bank account today and noticed that a child benefit payment of £67.50 has been paid... that's approximately half the usual amount, although I was epxecting nothing as we opted out and got a letter confirming that on the 7th December.

I'm just wondering if it is some sort of "final balance" payment to account for odd weeks or something before the final cut off?

Sounds lke it... We opted out as well and received the letter, it says something in the notes about possibly receiving a final payment after the 7th...

daleos

SADSAD wrote: »

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

I have spoken to "Citizens advce", "The money advice service", and "Turn to us.org.uk" all of whom cannot confirm whether or not my share incentive plan counts towards my "Adjustable net income". My local "Tax office" were suggesting it did not. I made a call to "Child benefit HMRC" who simply stated they had not had adequate training to answer my specific question. In the meantime I e-mailed HMRC with my query, however, being impatient I also called them and they stated that it did count towards it. Feeling reassured, I forgot about it until today, when I received a letter from HMRC stating that it did not.:eek: It seems to me that the left arm doesn`t know what the right arm is doing and I do not know where else to turn to get to the bottom of it. Maybe my local MP ?? :mad: