Child benefit tax
Discussion
If you earn more than £50k the effective tax rates between £50k and £60k are as follows:
1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
oyster said:
If you earn more than £50k the effective tax rates between £50k and £60k are as follows:
1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
Got to be one of the worst thought out Government clawbacks ever.1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
PurpleMoonlight said:
Got to be one of the worst thought out Government clawbacks ever.
They wanted to means test people in order to assess whether people over a certain level of income should receive the benefit (for decades it was paid out with no overview of the recipients income levels). Everybody with children was entitled to receive it - whether they were rich or poor.The problem with means testing a benefit is that you create a whole new level of bureaucratic administration that needs to be allocate, to test, to check, to review and to decide on whether the benefit can be paid or not.
The simple expedient was to turn the assessment over to the individual to assess themselves under "Self Assessment". However, to make it simpler, they did not include a number of tests and restrictions that should have been included to make the clawback fair. And they also dragged hundreds of thousands of people into Self Assessment who hadn't been included previously. Indeed, there are still thousands of people receiving the benefit today who should not really be doing so.
HMRC hopes that the personal Digital Tax Account system will solve these issues (pardon me whilst I roll around the floor laughing).
Personally I found the system of being given the money monthly, and then having to pay it all back at the end of the tax year (plus the piss poor HMRC website) such a pain in the arse that I had ours stopped.
For PAYE employees I don't know why they don't just adjust your income tax accordingly
For PAYE employees I don't know why they don't just adjust your income tax accordingly
oyster said:
If you earn more than £50k the effective tax rates between £50k and £60k are as follows:
1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
and a couple earning £99k between them doesn't pay a penny back1 child - 52.8% tax
2 children - 59.9% tax
3 children - 67.0%
4 children - 74.1%
5 children - 81.3%
Extreme example, but a £60k earner with 8 children takes home less than a £50k earner with 8 children.
Apparently this policy was introduced by the party of financial and economic astuteness!
skinnyman said:
Personally I found the system of being given the money monthly, and then having to pay it all back at the end of the tax year (plus the piss poor HMRC website) such a pain in the arse that I had ours stopped.
For PAYE employees I don't know why they don't just adjust your income tax accordingly
Missing out on NI credits towards pension!For PAYE employees I don't know why they don't just adjust your income tax accordingly
What’s difficult about paying it back?
Gassing Station | Finance | Top of Page | What's New | My Stuff