Jump to content
House Price Crash Forum
interestrateripoff

Child Benefit, More Form Filling For Middle Class Poor

Recommended Posts

http://blogs.telegraph.co.uk/news/iainmartin1/100185919/get-ready-for-george-osbornes-child-benefit-fiasco/

Now – surprise, surprise – it emerges that this policy in its latest incarnation is set to be something of an administrative nightmare. HMRC is getting ready to write to the taxpayers involved. James Hall reports that with just eleven weeks to go, the Institute of Chartered Accountants in England and Wales (ICAEW) has issued a warning ahead of the January 7 implementation of the cut. James writes:

ICAEW said that most middle-class families remain oblivious to the changes, which will require an estimated 500,000 people to fill out complicated self-assessment tax returns for the first time. Anita Monteith, technical manager at the ICAEW’s Tax Faculty, said that the “ill-judged” policy will over-burden a tax system that is already “creaking at the seams”. She said that “most people” do not know anything about the changes and said that the potential for confusion is “very high”. Ms Monteith said that that the system could end in chaos because HMRC plans to ‘claw back’ the money via people’s tax returns, rather than simply pay them less. The move will require half a million people to fill out returns for the first time, although families can avoid self-assessment if they give up child benefit entirely, Ms Monteith said.

I'm sure one thing for certain this will not end in chaos, the UK tax system is simple and clear, well it is when you have hire a highly paid accountant.... Looks like this benefit clawback is going force a lot of people simply not to bother, I'm guessing that's what the politicians want.

Share this post


Link to post
Share on other sites

I'm sure one thing for certain this will not end in chaos, the UK tax system is simple and clear, well it is when you have hire a highly paid accountant.... Looks like this benefit clawback is going force a lot of people simply not to bother, I'm guessing that's what the politicians want.

Really is disturbingly clueless policy..

Step 1: Introduce a policy that withdraws a benefit in a blatantly unfair way, creates a marginal rate of tax over 100% and hits your floating voters.

Step 2 : Backtrack on said policy in such a way that it is still unfair, but also involves a huge number of people having to file tax returns who never had to before, thus costing more money than you save.

Share this post


Link to post
Share on other sites

Any educated middle class person would find filling out a tax return pretty simple.

Uneducated chavs pretending to be middle class by running up debt and mewing....might struggle.

Does that sound a bit harsh ?

Share this post


Link to post
Share on other sites

Any educated middle class person would find filling out a tax return pretty simple.

Uneducated chavs pretending to be middle class by running up debt and mewing....might struggle.

Does that sound a bit harsh ?

Spot on.........I am sick of highly paid media people boasting about how stoopid they are......Arithmetic......the new Maths

Share this post


Link to post
Share on other sites

Spot on.........I am sick of highly paid media people boasting about how stoopid they are......Arithmetic......the new Maths

rithmetic..... the new English

Share this post


Link to post
Share on other sites

Any educated middle class person would find filling out a tax return pretty simple.

Uneducated chavs pretending to be middle class by running up debt and mewing....might struggle.

Does that sound a bit harsh ?

Probably - but it's still stupid and a pain in the bum. I've resolutely stuck with PAYE, I work from home but don't claim anything back, as the thought of filling out a tax return fills me with horror. Also, middle-class and good at maths...

Share this post


Link to post
Share on other sites

As has been widely reported in the past, this is a **** up for Osborne that was never supposed to happen.

The original announcement in October 2010 of cuts to child benefit was simply meant to provide political cover for the £18 billion of benefits cuts from the poorest - so the Tories could say "we're all in it together" - and then the plan was that once the cuts to poor peoples benefits had been passed and forgotten, the child benefit cuts would be dropped because by now the economy was meant to be booming - but with the economy still not good they can't justify dropping them entirely, even though they've managed to water them down substantially. This was why there was such a long delay between announcing and implementing the cuts - at the time it was obvious what the real plan was - so it's kind of funny how it's worked out, but also a real pain for those affected.

Edited by oldsport

Share this post


Link to post
Share on other sites

the child benefit cuts would be dropped because by now the economy was meant to be booming - but with the economy still not good they can't justify dropping them entirely, even though they've managed to water them down substantially

Well, dropping the cuts wouldn't have been fair. People should not be rewarded for breeding. The poorest should get child benefit for the first child only, IMHO. If you want more children you should have to sit down carefully and decide if you can afford them.

Share this post


Link to post
Share on other sites

Reported on Sky news yesterday (didn;t see it on the BBC) housing benefit to private landlords soaring as people in work can't afford rents. The perfect storm.

Edited by Socially Housed

Share this post


Link to post
Share on other sites

Wouldnt it be fuuny if those people that now have to fill out a return actually read it and realise they can offset a number of expenses againt their bill aswell, reducing the tax take further again...

Share this post


Link to post
Share on other sites

Wouldnt it be fuuny if those people that now have to fill out a return actually read it and realise they can offset a number of expenses againt their bill aswell, reducing the tax take further again...

Quite. A £150 accountant fee to fill it in generally pays for itself.....

Share this post


Link to post
Share on other sites

Wouldnt it be fuuny if those people that now have to fill out a return actually read it and realise they can offset a number of expenses againt their bill aswell, reducing the tax take further again...

Uniform washing?

Share this post


Link to post
Share on other sites

Wouldnt it be fuuny if those people that now have to fill out a return actually read it and realise they can offset a number of expenses againt their bill aswell, reducing the tax take further again...

Indeed. Self assessment was something of a revelation to me after being PAYE for more than a decade. This new initiative will almost certainly end up reducing the overal tax take.

Share this post


Link to post
Share on other sites

Indeed. Self assessment was something of a revelation to me after being PAYE for more than a decade. This new initiative will almost certainly end up reducing the overal tax take.

I'm starting to panic as I have to do my wife's first tax return as we have put £15k into her SIPP ensuring we keep child benefit and depriving the exchequer all of our/her 40% tax rate.

I can see it back firing too.

Edit: yes, I know the threshold is set at £50k now (child benefit reductions) but we've prepared including moving onto an IO mortgage so might as well go all out to £43k.

Edited by longtomsilver

Share this post


Link to post
Share on other sites

As has been widely reported in the past, this is a **** up for Osborne that was never supposed to happen.

The original announcement in October 2010 of cuts to child benefit was simply meant to provide political cover for the £18 billion of benefits cuts from the poorest - so the Tories could say "we're all in it together" - and then the plan was that once the cuts to poor peoples benefits had been passed and forgotten, the child benefit cuts would be dropped because by now the economy was meant to be booming - but with the economy still not good they can't justify dropping them entirely, even though they've managed to water them down substantially. This was why there was such a long delay between announcing and implementing the cuts - at the time it was obvious what the real plan was - so it's kind of funny how it's worked out, but also a real pain for those affected.

Yes, I thought this 'They'll give us back the Child Benefit close to the election as a bribe..'

Share this post


Link to post
Share on other sites

How does going on IO help, getting salary paid into some kind of tax free repayment vehicle? I've seen it mentioned a couple of times in the context of CB cuts. Also do we know who are going to be sent these forms, and do HMRC?

Share this post


Link to post
Share on other sites

Why should I pay for your kids?

Scrap it, or charge them for having kids to pay for schools etc.

I presume you'll want a pension one day?

Share this post


Link to post
Share on other sites

Wouldnt it be fuuny if those people that now have to fill out a return actually read it and realise they can offset a number of expenses againt their bill aswell, reducing the tax take further again...

As i've never had to fill out a self assesment form as i've either been non-dom or PAYE, what are examples of the kind of "expenses" I could offset against my tax bill ?

Share this post


Link to post
Share on other sites

Just had my child benefit form come through today informing me I need to decide either to stop claiming or go self assessment.

The "interesting" bit is that it says if I continue to claim and don't go self assessment i "may have to pay a penalty".

If you earn a little under the threshold but get a variable amount of overtime which may or may not put you over the £50K how do you play this?

Share this post


Link to post
Share on other sites

Just had my child benefit form come through today informing me I need to decide either to stop claiming or go self assessment.

The "interesting" bit is that it says if I continue to claim and don't go self assessment i "may have to pay a penalty".

If you earn a little under the threshold but get a variable amount of overtime which may or may not put you over the £50K how do you play this?

If it's a question of pushing you over by a few £k and you're not balance the household expenditure with this why not drop it into your pension.

My wife has upped her employee contribution from 3% to 6% so planning effectively starts from 94% gross salary and you'll hardly notice.

Share this post


Link to post
Share on other sites

Any educated middle class person would find filling out a tax return pretty simple.

Uneducated chavs pretending to be middle class by running up debt and mewing....might struggle.

Does that sound a bit harsh ?

I fill in these forms in regularly, it is anything but simple, especially the online version. If you have anything remotely non standard (other than. 1 wages and 1 banks/building society interest), you will have problem. Some banks also don't issue the interest certificate and you have to ask for it.

How often do you fill in this thing ?

Edited by easy2012

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 294 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.