Tuesday, Mar 10, 2015

Can I just have the child benefit back instead

Mail: 40p tax rate hits too many middle earners, says Cameron as he hints at fresh action on the issue in next week's Budget

"Mr Cameron announced last year that a future Conservative government would raise the threshold for paying 40p tax from £41,865 to £50,000 by 2020." 2020 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Is that just before the newly formed RAF Reservist Pig Flying Squadron takes off David.
"Family is the bedrock of our country" LOL.
Personally I'd just prefer not to be taxed on my children's child benefit. Just paid HMRC around £1700, which
pre-tax means I need to earn an extra £2833 a year gross !!!!!!
I'm really happy to subsidise the tax lost to corporate avoidance due to the failure of tax legislation.
Something stinks David.

Posted by doomwatch @ 01:41 PM (8292 views)
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23 Comments

1. sibley's b'stard child said...

"Electioneering"

I will stop
I will stop at nothing
Say the right things
When electioneering
I trust I can rely on your vote

When I go forwards you go backwards and somewhere we will meet

Riot shields
Voodoo economics
It's just business
Cattle prods and the IMF
I trust I can rely on your vote

When I go forwards you go backwards and somewhere we will meet

Tuesday, March 10, 2015 02:23PM Report Comment
 

2. mombers said...

40% tax rate? Only if you can dress your income up as not coming from working. Otherwise it's subject to NI, which brings the combined rate up to over 49% when you include employer's contribution of 13.8%, which comes directly out of your pocket via lower wages...
The effect is even worse for so called basic rate tax payers, whose true rate is 40.2% (12% NI and 13.8% employer's).
Then of course there's the CB clawback - in theory you could face a marginal rate of over 100%. Luckily I'm well past the £60k cutoff

Tuesday, March 10, 2015 02:36PM Report Comment
 

3. reticent said...

Don't worry Mombers, they're fixing that. They're planning on capping benefits for families with more than three kids. I think you need 8 kids to have a 100+% marginal tax rate between £50-60k (unless you're still paying off your student loan, in which case it's 7.

Of course, if you earn between £100k-£115k, your marginal tax rate is about 65% no matter how many kids you have. Makes you wonder why lawyers do so much overtime...

Tuesday, March 10, 2015 03:24PM Report Comment
 

4. libertas said...

Reduction of the 40% tax rate to 35%, or a flat tax of 20% (as corporations pay), with zero tax on minimum wage, would cause a FLOOD of educated and wealthy people from all over the world into England.

Tax havens would disgorge cash onto Britain, and we would see growth closer to 5% or 10%. There would be full employment. The pound would soar to €5. Switzerland would become jealous and the Exchequer would see tax receipts utterly soar.

Tuesday, March 10, 2015 10:21PM Report Comment
 

5. libertas said...

Reduction of the 40% tax rate to 35%, or a flat tax of 20% (as corporations pay), with zero tax on minimum wage, would cause a FLOOD of educated and wealthy people from all over the world into England.

Tax havens would disgorge cash onto Britain, and we would see growth closer to 5% or 10%. There would be full employment. The pound would soar to €5. Switzerland would become jealous and the Exchequer would see tax receipts utterly soar.

Tuesday, March 10, 2015 10:21PM Report Comment
 

6. libertas said...

Incidentally, child benefit was replaced with married couples tax credits, timed with gay marriage, so that we are up with the Euro equality land. Child benefit was seen as discriminatory against gay couples, but they could not sell it that way to the public, so they just went ahead in any case without saying a word.

Tuesday, March 10, 2015 10:24PM Report Comment
 

7. mister ed said...

@4
Until other countries cut their tax rates, and then all that cash that magically flooded into Britain would flood back out. This is commonly known as a race to the bottom.

Low taxes are a thing to aim for, granted. But the way to attract investment into a country is by having a skilled, well-educated workforce and solid infrastructure. If you attract investment by nothing more than low tax rates, you're offering nothing that an investor can't get somewhere else, and as soon as somewhere else offers lower taxes, they'll go there.

Your ignorance of economic history is matched only by your ignorance of economic history.

Tuesday, March 10, 2015 11:14PM Report Comment
 

8. vinrouge said...

It is not necessarily good to attract outside investment to your country, as foreign investors are both fickle and greedy, and inevitably extract more out of a country than they ever put in.

Wednesday, March 11, 2015 05:05AM Report Comment
 

9. hpwatcher said...

Your ignorance of economic history is matched only by your ignorance of economic history.

I absolutely agree with that.

Wednesday, March 11, 2015 08:08AM Report Comment
 

10. hpwatcher said...

It's OBVIOUSLY yet another desperate attempt to try and get more votes.

And something else to forget after the election. To the resident fool on HPC, you believe if you want to.

Wednesday, March 11, 2015 08:10AM Report Comment
 

11. reticent said...

"Your ignorance of economic history is matched only by your ignorance of economic history."

(...and that's saying something.)

Wednesday, March 11, 2015 10:26AM Report Comment
 

12. mombers said...

Wow, Libertas you really are on top form today. Child Benefit replaced by married couples allowance? First of all, it's not nearly as much (£197 vs at least £1066). It's limited to couples who both work but neither is a higher rate taxpayer. And gay people, just like anyone in the UK, is entitled to Child Benefit while they are growing up. The disconnect between depriving today's children of CB whilst not clawing back the CB that wealthy adults received in their youth is ridiculous.

Wednesday, March 11, 2015 01:04PM Report Comment
 

13. tom101 said...

By 2020....... This country really operates at a blistering pace.

Wednesday, March 11, 2015 04:36PM Report Comment
 

14. libertas said...

Mombers, Child tax credit was axed and IMMEDIATELY followed by married couples allowance IMMEDIATELY after gay marriage was approved. This was part of an agenda, whether you agree with it or not, this is a piece of social engineering with children placed in the crossfire. Yes, gay couples could have got child credit previously, but statistically, they tend to be childless, hence the policy. The timing was so perfect that I cannot think any differently.

Yes, they used the changeover to slash benefits, and your point is?

Wednesday, March 11, 2015 11:39PM Report Comment
 

15. taffee said...

Child tax credit is still available for anyone who is responsible for a child

https://www.gov.uk/child-tax-credit/overview

This is on top of child benefit...so you get loads of money just for having a child..read

Thursday, March 12, 2015 07:49AM Report Comment
 

16. libertas said...

Taffee, that is good news. What was the bit that got axed?

Thursday, March 12, 2015 08:16AM Report Comment
 

17. taffee said...

No idea but I can say that cb is around £20 pw but you can get over £60 pw for child tax credit!

Another example of the madness of the benefit system....can't be true...but read it and it is!...that's per child btw

Thursday, March 12, 2015 08:25AM Report Comment
 

18. letthemfall said...

Married couples allowance was abolished in 2000 (except for those born before 1935). Tax credits are still around for some.

Thursday, March 12, 2015 11:56AM Report Comment
 

19. doomwatch said...

Thanks for sweet FA David/George and @15 taffee for this ....

Based on the information you have entered, your household may be entitled to the following tax credits award:-
Child Tax Credit £0.00
Childcare element of Working Tax Credit £0.00
Sub total £0.00
Working Tax Credit (less the childcare element of Working Tax Credit) £0.00
Note: The childcare element of Working Tax Credit will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit.
Total £0.00

Thursday, March 12, 2015 01:41PM Report Comment
 

20. mombers said...

@14 Libby my point is that everyone gets CB when they are a child. It is a benefit for children, not adults. If we want to scrap it, it is only fair that every adults pays back what they received in their youth. People who don't have children are a much bigger burden on the state if they live to retirement age as they require punitive rates of taxation to be imposed on a smaller workforce

Thursday, March 12, 2015 01:49PM Report Comment
 

21. mister ed said...

@14
“Mombers, Child tax credit was axed…”

Er, are you living in a different country, on another planet, or on drugs?

Child tax credit has not been axed, and there is absolutely no sign that the Government intends to do so. They might change the name to Universal Credit, but the benefit payments will keep on flowing because they have to.

Most recipients of benefit are actually in work, and need those benefits (child tax credit, working tax credit, child benefit, housing benefit etc) to survive since they work in low-paid service jobs and the wages don’t cover living costs, especially if they have to rent their home, which many of them do.

We won’t be able to reduce the benefit bill until we find ways to genuinely stimulate the economy — ie actually start to make things of value which we can sell to other countries. You have, being a free-market capitalist — albeit one who works for the Government — read Wealth of Nations, I take it?

As for: “The timing was so perfect that I cannot think any differently.”

Read: “Several completely unrelated things happened — and some actually never happened, because I invented them — and my mind joined them together in a conspiracy theory.”

@16
“Taffee, that is good news. What was the bit that got axed?”

Er, he didn’t say anything had been axed. He said exactly the opposite. Child Tax Credit is alive and well, something which a minute or two of research on the HMRC website can easily prove.

Friday, March 13, 2015 01:20PM Report Comment
 

22. reticent said...

@21 Thanks for posting, mister ed. I've got sick of pointing this stuff out. It seems there is more discussion on the blog now but it is still dominated by Libertas and people seem to want to engage with him about specific points as if they might win him over without pulling him up on stuff like that.

Anybody who tells you the government had a specific pro-gay agenda when they did something that you know they simply didn't do is probably too far gone to be convinced of anything rational.

Friday, March 13, 2015 03:53PM Report Comment
 

23. stillthinking said...

I get caught by the 40% income + 10% n.i., just before the 20% v.a.t., while living in london, while being thwarted from (and thieved from) sensible economic planning by boe pricing manipulation, and my conclusion is to not work for an unspecified numbers of months at the end of the year, while living abroad.

Friday, March 13, 2015 09:30PM Report Comment
 

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