Child Benefit Tax Charge
Discussion
I have been in a mostly single (and more recently fully single) income household since HICBC was introduced and always just over the threshold so impacted by it's unfair implementation.
Don't worry, my youngest won't be eligible for it in a few months so this is the year it will be changed/uplifted/cancelled/whatever. Bound to be
Don't worry, my youngest won't be eligible for it in a few months so this is the year it will be changed/uplifted/cancelled/whatever. Bound to be
Chicken Chaser said:
Hondashark said:
It is on the cards.....to be used as an election bribe.
They can give me it but it won't stop me voting elsewhere. I also want a pay rise from them before they foxtrot oscar...Over to Labour to also offer the luxurious tax break to the rich families.
Hondashark said:
They'll put it in their manifesto so it won't happen unless they get voted in.
Over to Labour to also offer the luxurious tax break to the rich families.
Rich? Hardly rich. We might not be on the breadline but it's lazy to suggest anyone earning £50-60k is rich. It might be above the average wage in the UK but if you're a single earner, it's less than what 2 average earners will bring in. Over to Labour to also offer the luxurious tax break to the rich families.
Chicken Chaser said:
Rich? Hardly rich. We might not be on the breadline but it's lazy to suggest anyone earning £50-60k is rich. It might be above the average wage in the UK but if you're a single earner, it's less than what 2 average earners will bring in.
We have another thread where two people earning £60k are living in luxury apparently. UK is full of weird people. Chicken Chaser said:
Rich? Hardly rich. We might not be on the breadline but it's lazy to suggest anyone earning £50-60k is rich. It might be above the average wage in the UK but if you're a single earner, it's less than what 2 average earners will bring in.
I read somewhere that when this was launched it was the equivalent of £70k now. Which whilst still unfair affected far fewer. Once minimum wage goes up again this threshold wont be far off a couple working full time with a bit of OT on top. So far from higher earners.
The irony is that whilst the thresholds haven’t increased with inflation…. The benefits have which have made and continue to make the situation worse. Every year the tax percentage from £50-60k gets bigger….
Pablo_Picasso said:
Chicken Chaser said:
Rich? Hardly rich. We might not be on the breadline but it's lazy to suggest anyone earning £50-60k is rich. It might be above the average wage in the UK but if you're a single earner, it's less than what 2 average earners will bring in.
I read somewhere that when this was launched it was the equivalent of £70k now. Which whilst still unfair affected far fewer. Once minimum wage goes up again this threshold wont be far off a couple working full time with a bit of OT on top. So far from higher earners.
The irony is that whilst the thresholds haven’t increased with inflation…. The benefits have which have made and continue to make the situation worse. Every year the tax percentage from £50-60k gets bigger….
Puzzles said:
md_ph said:
Milner993 said:
The more I read this thread the more annoyed I get!
I'm fortunate enough to be earning a decent wage around £65k my wife only works part time due to child care costs so we loose all the child benefit.
What's the sweet spot between £50k and £100k if there is one?
I'm keeping my fingers crossed for some tax breaks but I'm not going to hold my breath.
99,999 is the sweet spot! Once you go over 100k you get hit with another whammy in that you start to lose your tax free allowance - giving an effective tax rate of 60% until you earn over £125kI'm fortunate enough to be earning a decent wage around £65k my wife only works part time due to child care costs so we loose all the child benefit.
What's the sweet spot between £50k and £100k if there is one?
I'm keeping my fingers crossed for some tax breaks but I'm not going to hold my breath.
‘It’s all fallen flat’: households earning more than £60,000 on how they are struggling financially
https://www.theguardian.com/business/2024/mar/04/m...
https://www.theguardian.com/business/2024/mar/04/m...
Something a lot of people miss is that It's not earnings that matter. It's taxable income. This includes the benefit in kind of any perks of your job.
You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
FreeLitres said:
Something a lot of people miss is that It's not earnings that matter. It's taxable income. This includes the benefit in kind of any perks of your job.
You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
Very good point.You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
It is a ticking time bomb ready to catch the unwary. If the Tories want to know why young professionals with families might be deserting them - it's blindingly obvious.
https://www.theguardian.com/business/2024/mar/04/m...
Lazy journalism from the Guardian. Despite the article being about families struggling despite being "high earners" the HICB charge isn't mentioned - even though this would be be highest tax charge of all.
Lazy journalism from the Guardian. Despite the article being about families struggling despite being "high earners" the HICB charge isn't mentioned - even though this would be be highest tax charge of all.
FreeLitres said:
Something a lot of people miss is that It's not earnings that matter. It's taxable income. This includes the benefit in kind of any perks of your job.
You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
Above is all correct, but you also need to take pension contributions off to get to taxable income.You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
Eric Mc said:
FreeLitres said:
Something a lot of people miss is that It's not earnings that matter. It's taxable income. This includes the benefit in kind of any perks of your job.
You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
Very good point.You could earn £50k but still be in the position that you have to complete a tax self assessment and pay back ALL of our child benefit.
Example:
Earn £50k in wages/bonus
Drive a diesel company car, Benefit in kind of £8k
BUPA healthcare £2k
TAXABLE INCOME £60k.
Don't just look at your wage being below £50k and think it doesn't apply to you.
It is a ticking time bomb ready to catch the unwary. If the Tories want to know why young professionals with families might be deserting them - it's blindingly obvious.
I now do self assessment which is not that much of a pain but could do without it.
jonwm said:
That's how I got caught in 2018, my 1st child was born just as it was announced it was changing (2013) didn't see it as it went into my wife's bank and forgot about it, salary was late 40s, throw in my diesel A5 company car, fuel card and bupa and I was over for about 4 years, had to get a loan to pay it back, had the letter 1 week before Christmas, and at that point had 2 kids and my wife not working! Killer of a tax and a very depressing Christmas!
I now do self assessment which is not that much of a pain but could do without it.
Holy crap! OuchI now do self assessment which is not that much of a pain but could do without it.
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