Child Benefit threshold

john_white

All,


I was just wondering if anyone knew of a template or similar that could be used to try and get the threshold for repaying child benefit? Currently it starts at 50k and if you earn over 60k you need to pay it all back.


That's all well and good, but the thresholds have not changed for nearly 6 years. Given the tax is largely seen as unfair due to it being based on a single income. Whether you agree or not with child benefit for middle earners the fact we have a tax which stays static for so long and is not based on any wage growth is crazy.


Thanks

Dazed_and_confused

Well strictly the charge itself starts at £50,100, not £50,000.

And it isn't calculated against "earnings" but something called "adjusted net income" is used which means you could earn £65,000 and be taxed on £65,000 but still not have any High Income Child Benefit Charge to pay if you paid enough into a personal pension/SIPP and/or made large enough Gift Aid payments.

Not really sure what you are a really after though it starts at £50,100 (1%) and goes up in multiples of £100 afaik so,

£50,200 would be 2%
£50,300 3%
£51,000 10%
and so on

john_white

I'm after getting the threshold upped, in line with everything else that goes up.


Prices of food and fuel go up, indeed other tax threshold are reviewed and go up, but this has stayed the same for 6 years.


I understand how it works, but putting more money in to a pension or gift aid doesn't help people paying day to day bills, so by doing this you are effectively capping your current salary to 50k,

Mojisola

john_white wrote: »

I'm after getting the threshold upped, in line with everything else that goes up.

I think the over-80s have a stronger argument for increasing the threshold of their additional pension - set at 25p in 1971 and still 25p now.

BoGoF

Think you want to be posting on the campaigns board.

HappyHarry

Then there is the £3,000 and £250 gift exemptions for inheritance tax that have remained the same since 1986.

Taxes have to be taken from somewhere, and it's easier for elected officials to freeze thresholds than it is for them to increase taxation rates.

sheramber

john_white wrote: »

I'm after getting the threshold upped, in line with everything else that goes up.


Prices of food and fuel go up, indeed other tax threshold are reviewed and go up, but this has stayed the same for 6 years.


I understand how it works, but putting more money in to a pension or gift aid doesn't help people paying day to day bills, so by doing this you are effectively capping your current salary to 50k,

Is the amount of child benefit worth more than the extra salary? If not, why restrict your salary?

The government want to reduce the amount of benefits they pay out .

They won't risk stopping child benefit altogether so the next best way to restrict is to limit it to those families with smaller incomes.

agrinnall

john_white wrote: »

I'm after getting the threshold upped, in line with everything else that goes up.

Well you won't get it done by posting on here. As it's Parliament that sets the threshold you need to raise this with your MP. Don't hold your breath for getting it changed.

john_white

agrinnall wrote: »

Well you won't get it done by posting on here. As it's Parliament that sets the threshold you need to raise this with your MP. Don't hold your breath for getting it changed.

I'm pretty sure I asked a question, not asking MSE to change it.

john_white

sheramber wrote: »

Is the amount of child benefit worth more than the extra salary? If not, why restrict your salary?

The government want to reduce the amount of benefits they pay out .

They won't risk stopping child benefit altogether so the next best way to restrict is to limit it to those families with smaller incomes.

No. the advice above was to reduce your adjusted net income to <50k. Hence capping real term pay to 50k.


Anyway they are not restricting it to lower income families , it's possible to earn 100k as a family before needing to pay it back, if both earners earn 50k.

john_white

Mojisola wrote: »

I think the over-80s have a stronger argument for increasing the threshold of their additional pension - set at 25p in 1971 and still 25p now.

Great input. You must be in the camp of do nothing and hope things change. Good luck with that.