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

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  • HappyMJHappyMJ Forumite
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    Is the £50K cut off your income after tax or gross salary?
    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.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • michaelsmichaels Forumite
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    Where was this in the manifesto?

    Why do a family earning 100k need this benefit whereas a family earning 60k don't?

    Why do pensioners earning60k, 100k, 1m still not have there benefits means tested, after all they do not have any children to support.

    For a 60k earner with 3 children it is equivalent to a 4k reduction in income (7%). In many cases this is on top to 4 years of nominal wage freezes = 15% real terms pay cut. This is an awful lot bigger tax increase than the so called US fiscal cliff.
    I think....
  • TeahfcTeahfc Forumite
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    flight747 wrote: »
    Everyones know benefits is more money than hard worker as I used to work before and the salary is terrible only take home after tax is £11,745 and pay all the bills, rent, council tax, no holiday and got nothing left. No saving. Now I earn £21,505 in benefits and don't have to pay council tax or rent. And enjoyed my holiday four times a year.

    So, it proved benefits are better than in work.

    You are not earning one single penny, you are being provided with money by tax payers !
    Huge difference, to come and gloat on such a forum is cheap and pathetic.
    "Man invented language to satisfy his deep need to complain."


    ''Money can't buy you happiness but it does bring you a more pleasant form of misery.''
  • edited 3 January 2013 at 8:24AM
    Icequeen99Icequeen99 Forumite
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    edited 3 January 2013 at 8:24AM
    Amazing how many mistakes MSE can produce in just the opening paragraph:
    Over a million families will lose, or have their child benefit entitlement reduced next Monday. What's more, many who aren't eligible for the benefit may be wrongly paid it, and will have to repay the cash at a later date unless they opt out before 7 January.

    Firstly, they will not lose 'entitlement' - and there won't be many who 'aren't eligible'.

    It is important that people understand the difference between entitlement to child benefit (which you need to protect NI credits) and receiving (or choosing not to receive) payments.

    And on who counts as a partner, more wrong info. The definition is exactly the same as for tax credits. It does not include just anyone living in the house, only the child benefit claimant and anyone who they are married to (unless separated under a court order or in circumstances likely to be permanent) or if they are living together with them as husband and wife. Similarly civil partners and those living together as civil partners.

    Q. What counts as 'living together' to determine income?

    HMRC includes any two adults who live together, whether they are married or not.

    Q. What if I am separated from the other parent? Does a step-parent's income count?

    As only one parent can claim child benefit, HMRC will assess all earners in the household within which the benefit is claimed.
    What rubbish, yes a step -parent's income, but not any other earners in the household.

    Come on MSE, read the legislation. There is no mention of a household.

    Another sterling job MSE

    IQ
  • GunJackGunJack Forumite
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    More to the point, WHEN are HMRC and DWP going to start to make all such matters LESS complicated??? Claim for this to get that even though you earn too much to get this, and fill in self-assessement forms too..... when are they going to realise a complicated tax & benefits system only serves to help the people who can exploit it and not the country as a whole ???
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Back to the subject of this thread...

    I believe that if you earn over £50k gross but have deductions from this (such as company pension) it reduces your gross amount to what's called Nett Taxable Pay. If this Nett Taxable Pay is under the £50k threshold then you are still entitled for the benefit.

    Can other deductions such as any Sharesave schemes also be deducted.
  • jobdone1jobdone1 Forumite
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    So in a nut shell on a like for like basis you would have to earn around £2500 before deductions if you have two kids earning over £60k to get back the loss of around £1700.

    Punish the working class who pay their way in life THANKS
  • Parva wrote: »
    No idea what benefits you are on to get that kind of money; the average jobseeker has barely enough to feed themselves and that's before we add the standard water, gas, electric and TV license bills to the equation. Let's not even mention luxuries like footwear and clothing.

    Good luck to you if you're earning that much for doing nothing, there's a guy just like you who enjoyed bragging about it. He's now busy moaning about having to sign-on. There is such a thing as karma.

    I doubt he really is on benefits. He is just here to have a bit of fun. But regarding your question on "barely enough to feed" , go read the thread " how accurate is entitledto.com". Gives you an idea of how messed up this system is rewarding some people with around 70K equivalent of benefits.
  • woodbine wrote: »
    about the only decent thing this govt has done,taking child benefit off those who dont need it,its about time some group other than the sick,disabled and low income families took some of the pain !

    I totally agree! For YEARS now I've been saying people over a certain pay threshold shouldn't be receiving child benefit. And to be honest, I know life is expensive right now, but if you earn over £50,000 a year and actually NEED that extra £80/£120 a month, you seriously need to re-evaluate your lifestyle and expectations of life!! And let's not forget, it's only based on the highest earner in the family, rather than overall family income ;)
  • movilogomovilogo Forumite
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    if you earn over £50,000 a year and actually NEED that extra £80/£120 a month, you seriously need to re-evaluate your lifestyle and expectations of life!!

    But if govt. thinks it is necessary to give same amount with families earning £98000 (where as those with £50/£60k not eligible), then electorates seriously need to re-evaluate their voting rights and expectation from this government.

    This rule is flawed in so many ways!!
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
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