Child Benefit Tax Charge
Discussion
Still contains the existing problem of single/combined incomes in one houseold.
It looks like this won't be addressed until 2026 by creating a new method of assessing household income as opposed to individual income. This is going to prove extremely problematic and I can see it being ditched before it is ever implemented.
It looks like this won't be addressed until 2026 by creating a new method of assessing household income as opposed to individual income. This is going to prove extremely problematic and I can see it being ditched before it is ever implemented.
Eric Mc said:
Still contains the existing problem of single/combined incomes in one houseold.
It looks like this won't be addressed until 2026 by creating a new method of assessing household income as opposed to individual income. This is going to prove extremely problematic and I can see it being ditched before it is ever implemented.
What would be the main challenges Eric? It looks like this won't be addressed until 2026 by creating a new method of assessing household income as opposed to individual income. This is going to prove extremely problematic and I can see it being ditched before it is ever implemented.
The UK tax system is fundamentally based on taxing individuals on their individual earnings. Laws were passed in 1988/89 to ensure that partners/spouses etc did not suffer extra tax because of their other half's income.
The Child Benefit Tax Charge fundamentally goes against this principle in that it tries to recover benefit income from an individual through the tax system - even if that individual was not directly receiving the benefit.
The current system also contains fundamental iniquities in how it deals with overall household income so, even if it as unfair system in principle, it is also GROSSLY unfair in operation too.
Creating a new system to assess tax charges based on "household income" which seems to be a fundamental change to the 1988/89 legislation in that "households" will now be assessable rather than individuals.
Also, it will be interesting as to what they will consider "household income" to be.
The Child Benefit Tax Charge fundamentally goes against this principle in that it tries to recover benefit income from an individual through the tax system - even if that individual was not directly receiving the benefit.
The current system also contains fundamental iniquities in how it deals with overall household income so, even if it as unfair system in principle, it is also GROSSLY unfair in operation too.
Creating a new system to assess tax charges based on "household income" which seems to be a fundamental change to the 1988/89 legislation in that "households" will now be assessable rather than individuals.
Also, it will be interesting as to what they will consider "household income" to be.
LastPoster said:
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
Told you 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
FreeLitres said:
Clawback raised to £60k! Tapers up to £80k!
Result
EDIT - plus, he said that taxes will be household income based from 2026(?).
Good news, seems fairer, I'd imagine the % that have to pay it all back will be less than 5% now so back to being a tax on the rich Result
EDIT - plus, he said that taxes will be household income based from 2026(?).
Edited by FreeLitres on Wednesday 6th March 13:38
The last bit won't happen. How would they work it out for 2 PAYE's like me and my partner. All her mail still goes to her parents where she's also registered to vote. Not that we'll ever get anywhere near the combined limit assuming it will be north of £100k.
ChocolateFrog said:
Good news, seems fairer, I'd imagine the % that have to pay it all back will be less than 5% now so back to being a tax on the rich
The last bit won't happen. How would they work it out for 2 PAYE's like me and my partner. All her mail still goes to her parents where she's also registered to vote. Not that we'll ever get anywhere near the combined limit assuming it will be north of £100k.
"Household" is where you ACTUALLY live - not where your post goes to.The last bit won't happen. How would they work it out for 2 PAYE's like me and my partner. All her mail still goes to her parents where she's also registered to vote. Not that we'll ever get anywhere near the combined limit assuming it will be north of £100k.
RenesisEvo said:
Good news - on the face of it. However, if that threshold is lifted, does it apply 'retrospectively'? I.e. if I submit my self assessment for FY23-24, is that assessed against the 50k limit, or the 60k one?
New rules will come into effect on 6 April 2024 i.e. tax year 2024/25.RenesisEvo said:
Good news - on the face of it. However, if that threshold is lifted, does it apply 'retrospectively'? I.e. if I submit my self assessment for FY23-24, is that assessed against the 50k limit, or the 60k one?
Pretty sure he said changes from April, which isnt retrospective (as to be expected really)Eric Mc said:
RenesisEvo said:
Good news - on the face of it. However, if that threshold is lifted, does it apply 'retrospectively'? I.e. if I submit my self assessment for FY23-24, is that assessed against the 50k limit, or the 60k one?
New rules will come into effect on 6 April 2024 i.e. tax year 2024/25.
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