Child Benefit Tax Charge
Discussion
KTF said:
duckson said:
No you ADD on ANY non-ISA interest you have accrued in that tax year to your total earnings.
Ah yes, as that is also classed as income. I thought that was also automatically reported by the banks, etc as well or is that also not the case?duckson said:
KTF said:
duckson said:
No you ADD on ANY non-ISA interest you have accrued in that tax year to your total earnings.
Ah yes, as that is also classed as income. I thought that was also automatically reported by the banks, etc as well or is that also not the case?Pit Pony said:
Eric Mc said:
Assessing household income for benefits is one thing, assessing household income for tax purposes is something different. The Child Benefit clawback system blurs that distinction.
Just because they are different, should they be ? Even systems that are, in theory, managed by the same organisation e.g. HMRC (VAT, NI, Income Tax) have clashes and differences as they all evolved differently with different aims and objectives. Dragging the DWP into an HMRC administered set-up causes all sorts of problems.
I'm also being chased by HMRC for last year's payments. I wasn't sure how far I'd drop I to the higher rate as it's the first time I have done. Turns out I'll owe 60% back for the 2 kids' allowances. Projection for this tax year looks like I'll have to give it all back. At the minute I've not cancelled it. I could do AVC and try and stay under the threshold but it's difficult to do when I have the ability to earn more just by putting in the hours.
Obviously last year's has gone as I can't retrospectively put money into my pension for last tax year but is it best just to wait until the end of the year, make the calculation and then ask payroll to drop in a lump sum?
Really pisses me off that the more you push yourself into better roles, the more the govt penalises you for doing so. Tax is an unfair system. I have friends who both earn £48k a year with 2 kids and can claim this, yet as a household we earn at least £10k less as my wife works part time and I'm having to repay it whilst paying extra tax as well!
Obviously last year's has gone as I can't retrospectively put money into my pension for last tax year but is it best just to wait until the end of the year, make the calculation and then ask payroll to drop in a lump sum?
Really pisses me off that the more you push yourself into better roles, the more the govt penalises you for doing so. Tax is an unfair system. I have friends who both earn £48k a year with 2 kids and can claim this, yet as a household we earn at least £10k less as my wife works part time and I'm having to repay it whilst paying extra tax as well!
The Rotrex Kid said:
pacenotes said:
I expect the threshold to go up on Wednesday.
They need the middle voters next year.
You'd think it would get more people onside than cutting bloody inheritance tax! They need the middle voters next year.
But yes as someone whose child is maybe going to Uni next year the way they calculate the grant is a bit unfair with there being no difference in earning £10k more per annum it seems.
With the threshold there’s no way he could afford to go away to uni given the £9k per annum fee and the cost to rent and live.
Chicken Chaser said:
I've just been sent a new tax code to repay what I owe. I thought they would have just asked for the money in a lump sum.
I believe you can ask HMRC to consider alternative payment methods like a lump sum if you want. I got a tax code change as well, tax free allowance halved and nearly £200 off my monthly net pay. Complete kick in the stones. I also had a new tax code sent through after I did the self assessment last week and it said I had to pay it.
Now I am confused, do I still need to pay it or will be be collected by the tax code change? If it still needs to be paid, is there a balance due section on the HMRC website anywhere?
Now I am confused, do I still need to pay it or will be be collected by the tax code change? If it still needs to be paid, is there a balance due section on the HMRC website anywhere?
KTF said:
I also had a new tax code sent through after I did the self assessment last week and it said I had to pay it.
Now I am confused, do I still need to pay it or will be be collected by the tax code change? If it still needs to be paid, is there a balance due section on the HMRC website anywhere?
If you’ve had a tax code change then they will take the payment via that. I think if you log in to your personal tax account it will show you? Otherwise they will update again at the end of next year.Now I am confused, do I still need to pay it or will be be collected by the tax code change? If it still needs to be paid, is there a balance due section on the HMRC website anywhere?
I just let them take it from my tax code, just makes it easier IMO
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