Child benefit changes ?
Child benefit changes ?
Author
Discussion

J4CKO

Original Poster:

46,966 posts

230 months

Sunday 18th November 2012
quotequote all
Not going to moan about it (done enough of that) but was wondering if things like they cycle to work scheme and buying a weeks additional holiday would reduce
my income in terms of how much I have to delcare on my tax return, in turn reducing how much of the CB that I have to pay back, also are there any other ideas as to be honest anything over 50k is now being taxed at an effective 73.5 percent.

My wage is just short of 50k but with a car allowance, bonus, call out and whatever I generally add 8 to 10 k to that.

I cant take the car option at work as they closed the scheme and just provide the car allowance, only people that had the car at the time could opt for one again, annoying as it would mean we still get the CB if I had a car.

Any other strategies ? is there any expenses you can claim as a PAYE monkey ?

I think this is actually going through, despite it being a badly implented half baked load of nonesense, can see why and sort of support the sentiment but it is annoying a family on a 100k joint income will keep it along with paying less tax, double whammy !

Jazzer77

1,533 posts

224 months

Sunday 18th November 2012
quotequote all
Pension contributions via salary sacrifice (if available). My brother has been bleating on about this for months now.
He intends to reduce his income down so far that he'll qualify for Child Tax credits for a year or two.
Govt loses on the tax and N.I due on income, he gets huge contribution into pension + top-up income from HMRC.

Problem about unfair taxation (70%+ certainly qualifies) is that ordinary people look into circling the wagons and once the step is taken its only a small jump before they are at everything.

supersport

4,638 posts

257 months

Monday 19th November 2012
quotequote all
The cycle to work scheme isn't big enough although it helps. It is a max of £1000 that you have to spend on a bike! I don't think you can sell it for a couple of year either.

Child care vouchers would be the way to go at £250 a month, although that might have changed. This combined with pention conributions via salary sacrafice should just about sort you out.

Steffan

10,362 posts

258 months

Monday 19th November 2012
quotequote all
Jazzer77 said:
Pension contributions via salary sacrifice (if available). My brother has been bleating on about this for months now.
He intends to reduce his income down so far that he'll qualify for Child Tax credits for a year or two.
Govt loses on the tax and N.I due on income, he gets huge contribution into pension + top-up income from HMRC.

Problem about unfair taxation (70%+ certainly qualifies) is that ordinary people look into circling the wagons and once the step is taken its only a small jump before they are at everything.
Essentially correct. The self defeating tendencies of very high taxation rates are known to all tax advisers and to all governments. A balance must be struck. I suspect this measure will be both derided and avoided as it can so easily be for those in the know.

I suspect your example will not be alone. Cameroon and Boy George are both a waste of space. Possibly not as bad as Millipede and Balls Up but still not good.

russ_a

4,725 posts

241 months

Monday 19th November 2012
quotequote all
I'm also on the border of this too but was happy to find my pension contributions take me under. Though a 2% rise next year may put me over again and I can't increase the pension.


J4CKO

Original Poster:

46,966 posts

230 months

Tuesday 20th November 2012
quotequote all
I have a standard workplace pension, I pay about £200 into it, it isnt "salary sacrifice" or whatever, I was under the impression payments into that wont count and I will just have to declare my gross salary regardless of £2500 or so a year being diverted to a pension ?

Zigster

2,004 posts

174 months

Wednesday 21st November 2012
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J4CKO said:
I have a standard workplace pension, I pay about £200 into it, it isnt "salary sacrifice" or whatever, I was under the impression payments into that wont count and I will just have to declare my gross salary regardless of £2500 or so a year being diverted to a pension ?
I'm pretty sure that's not true - your pension contributions reduce your gross income regardless of whether or not they are paid via "salary sacrifice". There is a complicated definition of "adjusted net income" for this purpose. This article from the Guardian explains it a bit more
http://www.guardian.co.uk/money/2012/nov/16/beat-t...
(and you can ignore most of the typical Graun reader comments below it ...)

sumo69

2,164 posts

250 months

Wednesday 21st November 2012
quotequote all
I think Zigster is correct on this.

David