Tax allowance

[NiceCuppaTe]

Hi all, first time posting so go easy!

Does anyone else find it frustrating how the tax system is stacked against families with higher single earners as opposed to dual earners?

For example, I'm currently on maternity leave but we can't use the married tax allowance since DH is in the top tax band, we therefore we also get no CB and he has no tax free personal allowance. However a household with two earners each making half as much would end up with more money after tax due to lower tax bands, personal allowance etc.

Does anyone else just feel like the system penalises single earner households (i.e. families) rather than DINK households when really it's families that should be getting the support?

I think inevitably people are going to sympathise more with the loss of CB if you're not that far over and earn less combined than two working parents could whilst still getting it. So losing it on 70k while two earners on £49,950 each both keep it is absurd in a way that losing it on 150k isn't.

However a household with two earners each making half as much would end up with more money after tax due to lower tax bands, personal allowance etc.

If you find it sooo unfair, you could always, you know, get a job too. Your household would still need to be run, by the two working adults, who each now had a job.

Why should two adults who are married, be given a tax break?

we also get no CB

Absolutely echoing sunseed’s comment about claiming child benefit and paying extra income tax in return. The downside is that your husband will have to complete a self assessment form (but he might do that anyway). The upside is that you will get National Insurance Contribution credits. This is really important for you as the stay at home partner.

I agree that there are disadvantages for households where only one partner is in paid work. On this thread, so far it’s been discussed in context of men in paid employment, women staying at home but actually high earning women who are lone parents lose out too. This happened to a friend of mine.