To be confused how much you have to be earning for CB cuts to affect?

[seaShoreLonging]

Am I just being thick ?

I keep reading that thanks to personal allowance rate the wage had to be 43,875 for one parent for CB to be taken.

However I read in the Time Saturday an article by David Budworth saying:

?Georeg Osbourne announced that the starting level for higher rate tax will fall by £1,500 to £42,375 from April next year. This will put about 700,000 additional people into higher rate band just before CB is withdrawn for top earners. The 40 per cent threshold will then be frozen for following three years taking a further 1.1 million people into top-rate bracket as their wages rise.

...
Currently, an individual needs to earn between £43,875 or more to pay higher rate tax. However, anyone earning between £36,500 and £42,000 is likely to become a higher rate taxpayer by the end of the Parliament?
< can?t link as it is the Times>

I am wondering if this is correct or scare mongering?

The gross income above which higher rate tax currently applies is £37,400. The personal allowance is £6475. So you pay higher rate tax if your total income is higher than £43875. The thresholds usually change with the budget to reflect inflation but sometimes they are frozen so that more people fall into that bracket. It is not impossible that the thresholds could fall.

However, it is worth saying, that there is a move to increase the personal allowance (0% tax) from £6,475 to £10,000. This could offset anything lost on CB.

Next year the Personal allowance is going up by 1500. The government wishes to restrict gains in this icnrease to current basic rate tax payers. So it is reducing the HR limit by £1500.

We'll lose £88 a month on CB. This won't be made up by the extra personall alowance that is tax free if this is just £1500 extra and only for basic rate tax payers.

Thanks

So I need to keep an eye on the personal tax allowances and what is announced and predicted and what happens with the thresholds in the future.

I'm trying to work out what going to happen as DH wage may reach lower levels of that range in next few years but it looks likely he'll end up working away from home - not able to follow for few years -leaving our money very tight and dependent on CB as well as restricting my ability to get work and train.

He's already had to turn down a next step up job as the money was 1000 p.a to short to make ends meet and they said they couldn't increase it as it was national pay graded scheme.

Right - will keep an eye on things.