.... to feel like I'm being diddled on taxes :-(

[skintmaternitymummy]

Have name changed for obv reasons
Don't have a go at me, I just feel the need to rant, and wondered if I'm the only one in this position?

I have a very good salary, and am the main breadwinner in our family

I pay 40% tax, which after paying my way through uni, with whacking loans and working to get to the level I am to earn the salary I do is fair enough.
I agree with tax to be stepped to make it as 'fair' as possible

BUT

Now I am on mat leave I really feel as though I am being totally shafted by our jolly gov who like the 'big family shindig' (not actual quote...)

I will shortly be on stat mat pay at £124.80 a week - whilst I know this is better than nothing it effects our income drastically and we can just pay bills, yet because of the way the tax year will fall I will still be taxed on this amount - granted I will get some of it back later in year, but in short term will be still loosing fair chunk of it

I received a letter today from work advising me on changes in childcare voucher system from 6.4.11 - basically the higher tax I pay will drop to be same as 20% so there will no longer be a benefit unless I register before 6.4 - except I cant as the baby is currently overdue, but induction wont be till 6.4. Even if it comes 5.4 I still have to be reg by 5pm 5.4

I really feel like I dont moan about taxes, contributions etc usually, but this is the last straw. The 1 'benefit' we would be entitled to will no longer be valid. I feel like I put in but cant get 'out' when I need it, nor when I return to work, yet have put in huge amounts over last few working years.

I now feel like I'm in the position whereby I'm stuck in the cycle - we couldnt afford for me to give up work, PT is not an option in my career area and yet most of my salary will be on childcare afterwards (more than mortgage) - I only say 'my' salary rather than ours due to proportion, our money is all shared. we have no family for 150 miles.

Am I the only one who feels like this? Am I missing a trick with any tax breaks to help out whilst I'm on mat leave?
I've looked at entiteld to but cant see anything, because everything seems to be skewed on my salary adjusting our household income, even though we wont get it whilst I'm off

sorry but I'm afraid that is all part of the decision to have a child. I didn't think SMP itself was taxable though

good point - should add dont expect anyone else to pay for our decision to have a baby, but the childcare vouchers wont get the gov any more cash really, so just felt it was a bit mean

Smp is I think, maternity allowance isn't...

YANBU...annoying when you pay so much in to feel that you have missed out by potentially one day. I wold feel hard done by too.

Sorry, I imagine it is hard readjusting to a lot less money. But at least it is only temporary. Imagine knowing that you will probably never get any more than that, however hard you work, for years and years, with no option, no choice.

You are right, you are being shafted by the government. It is grossly unfair.

Can you not sign up for the vouchers in anticipation of the child arriving this tax year?

5ofus you can - but the catch haha is the only bit of data they cant ammend / back date is the actual date of birth... so no... ho hum

Did you put any money aside before you decided to have the baby? Save up? The reality of life on a decent salary is that you're expected to be self-sufficient and manage your money wisely. And the reality of a tax system that redistributes wealth from the rich to the poor is that some of us will never get back anything like what we put in - so it's folly to expect it. And, let's face it, if the biggest problem in your life is that you're paying a lot of tax, it's really not the worst thing in the world.

If you want to have a go at anyone, have a go at your employment contract. Other companies pay out far more than SMP to senior staff.

I think you only need to register with your works scheme before 6th April, you don't need to use the vouchers. Just get on the list.

OK the childcare voucher thing sounds unlucky, but as far as the rest of your complaint goes, I think you need to readjust your thinking a bit.

You decided to have a child and you therefore cut your cloth accordingly.

YABU to expect a taxation system to support those in well-paid jobs to bring up their families - that is not what paying taxes is all about.

I think you can get on the voucher scheme regardless of having the actual baby there to pay for. Really get on that as it will really piss you off if you find that out too late.

Aren't we all?!

YANBU OP.

For a tax system to work it has to be fair. Constantly taking and never giving back is not fair, however much you are earning. Thats why they had universal benefits in the first place.

There are too many people who think you owe them a living because you are on a better wage than they are.

Theres not much you can do about it now, but when you are back in work earning again, do what you can to minimise the tax they can take from you. Not paying in is the same as getting some back IMO. You were not put on this earth to work for other people.

If you are paying 40% tax and then go onto SMP, it is quite likely that you will receive a tax rebate as your tax will have been on a cumulative tax code, and once your wages go down, you will have "over paid".

But you're going to be getting tax credits whilst you are on mat leave, so that doesn't really come into the equation does it?

I have to say that I've always felt the ability to offset childcare vouchers against the 40% tax rate was an anomaly.

After all, your child care costs will be no more than someone in similar circumstance to you (ie number of hours worked) but earning below the 40% rate and yet you would get a higher contribution towards those costs just for the privilege of earning more? There can't be many other circumstances where the more you earn the bigger government benefit you can claim.

Anyway, you're still better off than someone who's self-employed who can't claim childcare vouchers at all, and as previously mentioned if you overpay your tax then you'll get a rebate in the following year - can come in handy, I got my first month's pay back at work tax-free.

I agree with you OP. I'm in a similar situation. What annoys me is the taxes have been rocketing up the last couple of years, so take home pay gets smaller and smaller by the month. Services at the same time are being severely cut back. So it would be really galling to lose out on the one thing that you actually get back by a few days. I hope you can find a way to claim it. (I had heard the revenue is looking into removing the benefit completely, they don't like the salary sacrifice arrangements at all.)

It annoys me especially as I lived for a while in France where you pay tax as a family unit so the amount of tax you pay is affected by the number of children you have. More kids = less tax until they are of age. Makes it a lot easier for families during the tough early years.

Interesting reading your replies... I've not delved into the murky world of money on here before & there were some points I hadnt considered fully, so thank you.

.... but I am amazed at how fast some people are to point to 'well you earn more so youre ok' ... which I do appreciate hence mentioning it in my original post. I wasnt moaning about paying tax - I agree with the system, its just being the woman and the main earner it effects us more than if it twas other way around...just because you might be a little hard up more often please dont berate me for feeling like on the occassion I could do with a hand I dont get one makes me feel a little blue.

I'm sympathetic, skint.

Don't know what the poster means about tax credits though? Don't think you'll be eligible at all???