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Child Benefit To Be Scrapped For Higher Taxpayers

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Already posted this on the general benefits thread:

Post #1

Osborne just announced end of child benefit for higher rate tax payees. Step in the right direction.

Wasn't sure how it would work. What if one parent earns £50K and one £10K, you lose it but 2 parents could earn £40K and keep it? I think, like the child tax credits changes announced in the budget it'll come down to combined income. And then £44K isn't really very much.

HAving welcomed SMI and LHA changes, I can't really complain about losing CB can I?

But what the thread yesterday about wiping out the middle classes? The Iceland one? Is this the thin end of the wedge?

Post #2

BBC have confirmed its the single earner threshold.

******wits.

So not only do 2 middling income, £30Kish, benefit from 2 tax allowances and no higher rate tax, now they'll also benefit from this changed compared to one chap earning £60K. Not joined up thinking at all. It must come down to combined income or it is ill thought out. More proles, fewer middle classes?

Post #3

Seems like a good idea to me. Should be based on household income over higher rate threshold, though that is probably harder to implement.

Not really because the system (child tax credits) is already in place to collect the info, income is already declared to HRMC on this basis.

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Those pesky higher-rate tax payers. Why should they get anything in return for contributing to the system?

Only the workshy and benefit pro's should be drinking from the honey pot.

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Apologies if already posted.

Child benefit to be scrapped for higher taxpayers.

My link

Hmm. Looks like I'll be asking for a pay cut at my next salary review.. there is actually going to be a salary band with >100% marginal taxation for many people now. That would be the whole 'aspiration party' thing.

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Those pesky higher-rate tax payers. Why should they get anything in return for contributing to the system?

Only the workshy and benefit pro's should be drinking from the honey pot.

Yeah but we're all in this together!

I don't know about you but, although I agree with the general principle that there is too much difference in this country between what people earn 'at the top' and 'at the bottom' - they never seem to 'hit the top' they just hit middle income earners - like me.

I sometimes feel I'm carrying 6 other people - I work hard and pay tax - but I get the feeling I am paying in on behalf of an army of workshy dossers or black economy tax dodgers or stinking rich tax avoiders. Now child benefit is gone I don't get anything back from the state - apart from NHS treatment. And even then I have to pay for eye tests, dental treatment, prescriptions etc. etc. - all things other people get free. It's a bit like a sort of extended parent role. Your hand is always going in your pocked to fetch your wallet out.

I'm just waiting for my youngest to grow up and income tax thresholds to go up to 10k. My wife and I will then set our earnings to be 20k and the rest of ye can get fecked.

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It ought to be scrapped for all taxpayers earning over 30k a year.

So two parents earning 29K each, ok

One single parent earning 31k, bad

mmm, ok - ( I'm not moaning like eh y'know, I fall into the first category ;-) )

for this higher tax payer, losing 80 quid a month, or 960 a year at the 40% tax band, is like losing 1600+ of taxed income. For someone with just one kid, there's actually a negative value patch of earnings between 44 and 46 grand now, and it'll be more for people with more kids.

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Discussed this with the wife last night. I said, give them a chance I hope things will get fairer for us...

They did talk about rewarding marriage via the tax system and I'm sure there was talk of a £150 tax break for married couples. They would need to increase that around ten-fold if they are going to have any hope of appealing to their core middle class vote.

I agree with CB being means tested, but a combined income of £44k is hardly rich in the UK today, it's not enough to buy an average house.

I'm self employed and seriously considering leaving money in the business or starting a self-select company pension rather than taking the money out to keep our family under these thresholds. The tax system is just too taxing and I get so little back.

Edited by What's'isname

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Yeah but we're all in this together!

I don't know about you but, although I agree with the general principle that there is too much difference in this country between what people earn 'at the top' and 'at the bottom' - they never seem to 'hit the top' they just hit middle income earners - like me.

I sometimes feel I'm carrying 6 other people - I work hard and pay tax - but I get the feeling I am paying in on behalf of an army of workshy dossers or black economy tax dodgers or stinking rich tax avoiders. Now child benefit is gone I don't get anything back from the state - apart from NHS treatment. And even then I have to pay for eye tests, dental treatment, prescriptions etc. etc. - all things other people get free. It's a bit like a sort of extended parent role. Your hand is always going in your pocked to fetch your wallet out.

I'm just waiting for my youngest to grow up and income tax thresholds to go up to 10k. My wife and I will then set our earnings to be 20k and the rest of ye can get fecked.

I have it on good authority that you will get your rewards in Heaven. I've got you a good seat three rows back from the front.

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Those pesky higher-rate tax payers. Why should they get anything in return for contributing to the system?

Only the workshy and benefit pro's should be drinking from the honey pot.

and the elite.

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All of these meddling little things should be abolished. If people want to get married, or have kids, or ride a bike to work, or put solar panels on their houses, or parachute out of a plane while slicing a mango, that's fine by me but pay for it yourselves. The system would benefit from being radically simplified.

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This won't appease the DM readers who moan about those with umpteen kids. In fact, it may backfire as an attack on the middleclass if he doesn't limit Child Benefit to say, 3 / 4 kids. I think he may reduce the amount per child as well.

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So two parents earning 29K each, ok

One single parent earning 31k, bad

mmm, ok - ( I'm not moaning like eh y'know, I fall into the first category ;-) )

for this higher tax payer, losing 80 quid a month, or 960 a year at the 40% tax band, is like losing 1600+ of taxed income. For someone with just one kid, there's actually a negative value patch of earnings between 44 and 46 grand now, and it'll be more for people with more kids.

Just this conversation with the husband we're under the 44k at the moment due to a pay cut however we hope to be back to this level by 2013 and at that point with 3 kids we'll be loosing £2500 a year. With his 40% tax band he then needs to earn 50k to keep us at the same level. I'm hoping by then my business will be in a place wherei can draw a proper salary and we'll be fine.

We put the CB away in a separate account and whenever the kids need something such as shoes, clothes, swimming lessons (i know this sounds a luxury but they don't teach swimming at their schools anymore, no free child swimming at local pools and kids must learn even just for basic safety lesson) i take the money from this account so it's spent on what it was intended for. However i know LOTS of people who rely on this money just to pay normal bills, i've got one friend who based her decision to split from her husband as she knew CB, Tax credits etc would enable her to pay the mortgage on her own, she's now planning on putting the house up for sale as she can't afford it anymore with the cuts coming. As a family who can't afford to buy a family home, i only hope these cuts will lower house prices so we can afford to buy a home at a reasonable rate so we have more spare money to cover the loss of CB.

Another question regarding the new rules. So if you earn 40k as your basic salary but then get a bonus of £5k you're over the limit, when would they stop CB? Immediately and would we have to pay back what we'd had that financial year so far like it happens with tax credits?. What happens to CB the following financial year as that was a bonus and not "normal" salary and you can't guarantee what bonus if any you'd get. I can see this becoming the tax credits fiasco all over again with over payment hell.

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Hang on, it's was barely a decade ago when no-one got child benefit right? How on earth we survived then I'll never know.

I mean, how did my parents manage to raise me without it?

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isn't this £44K for one parent...NOT COMBINED salary.

So both parents could earn £40K each = £80K combined and still collect benefit.

Thats what BBC have just said.

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Hang on, it's was barely a decade ago when no-one got child benefit right? How on earth we survived then I'll never know.

I mean, how did my parents manage to raise me without it?

Did you just arrive in a time machine?

Child benefit came into existence in 1977, when it replaced Family allowances and Child tax allowances.

So you would have been brought under a more generous arrangement, where your parents paid less tax because they had you.

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Anyone earning over 44k a year should not be able to claim anything, period!

Maybe I'm showing my age, but £44k is still a fair whack, I'd bring it down to morelike £30k or even less.

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Hang on, it's was barely a decade ago when no-one got child benefit right? How on earth we survived then I'll never know.

I mean, how did my parents manage to raise me without it?

You're thinking of Child Tax Credit.

My parents got Child Benefit and I'm 39.

When are they going to go after the 'rich' pensioners. My IL's own five properties outright, have two tidy final salary pensions coming in (alongside four lots of rent), don't have any other mouths to feed, and don't have work related expenses to find. Free prescriptions, eye tests, Winter Fuel Allowance... and FIL has just qualified for a free TV licence!

I'm not wanting to start boomer bashing, but it smacks of more ladder-pulling.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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