Please explain the cb changes to me...

(8 Posts)
MrsWolowitz Mon 29-Oct-12 15:35:03

Please explain the changes to me very simply as I'm a bit fick confused.

DH earns £35,000
I earn £12,000 for working 20 hrs a week
We have three DC under 5.
We currently get £180 cb a month but no tax credits or any other supplements.

Please tell me we won't lose our cb? Our mortgage is crippling and we live very frugally but it's still a struggle.

I'm confused and a bit concerned.

MrsWolowitz Mon 29-Oct-12 15:42:55

Anyone?

CogitoEerilySpooky Mon 29-Oct-12 15:48:46

The changes involve anyone paying higher rater tax of 40% or more. The 'High Income Child Benefit Charge' HMRC Table. Your personal allowance is currently £7475 and you are allowed to earn a further £35,000 before you would hit the threshold where you pay 40% tax. £42,475 in total. The CB is recovered on a sliding scale so, if one of you earns more than £50,000, it's all recovered back in tax.

You earn well under that number and so does your DH. You won't lose CB.

MrsWolowitz Mon 29-Oct-12 16:04:46

Thanks!

<mops brow>

Xenia Mon 29-Oct-12 19:46:07

No need to worry for you at all.

sparkleyangel Fri 09-Nov-12 23:52:23

buy a cheaper house maybe? your on £42000 a year and moaning you cant live without your child benefit why have three kids and a mortgage you can barely afford then. There are loads of people out there living on minimum wage and a mortgage just about scraping by.

80sMum Sat 10-Nov-12 00:03:51

There is surely no way that anyone earning the Minimum Wage could possibly afford to service a mortgage? The MW has been shown to be below 'living wage' level.

niceguy2 Sat 10-Nov-12 12:59:51

It's a bit uncalled for Sparkley. OP was merely asking for some advice because she's understandably worried. Their combined income isn't £42k btw in case you are mathematically challenged.

Whilst their combined income is certainly good, it's hardly the stuff of riches. Certainly the idea of losing over £2k a year should worry all but the richest amongst us.

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