HICBC Commons Debate
in Cutting tax
5 replies 176 views
in Cutting tax
I've not seen this posted on here but may well have missed it - I just stumbled across a recent Parliamentary debate on the HICBC if anybody wants the govt. latest thoughts on the matter. I still don't think they really understand the problem The minister is very clear she insists on paying her own tax and that it shouldn't be combined household, that everybody is taxed on their own earnings and not affected by their partners earnings - I wonder why I am liable for repaying the child benefit my wife claims then
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(Ha sido divertido)
Independent taxation means that HMRC cannot divulge one partner's earnings to another.
Using combined earnings would not be possible without that happening.
Some couples do not share that information.
How would you get round that.
the reverse situation to yours also applies.
If your wife was the higher earner and you claimed the child benefit she would be liable for the charge.
She doesn't earn over the HICBC threshold though. HMRC does know what I earn and that I'm in the same household though - they would certainly come after me (eventually) if I didn't pay any HICBC due and so they do know what the household is earning, it can't be a massive leap to take both incomes into account.
TBH I'm not even that bothered about taking both incomes into account, I just think the threshold should have risen way above what it currently is. As it is I've just managed to squeeze under the threshold again and given my pension a boost.