child benefit higher tax band - nothing in budget

[tea1tea2]

AIBU to think with all the rising living cost , child benefit higher tax charge shouldbe moved from £50000 to £75000 something? i am not earning that much but DH does .

Of course it’s unfair.
They can both be unfair.

How much child benefit do you get at 49k pe annum?

@TalbotAMan

It’s overly simplistic to suggest that CB is justifiable because parents have more expenses than childless people (and are therefore by definition less wealthy, and more deserving of state funds). It’s not overly simplistic to describe the tax system in the terms you set out, though, I agree.

I’m not convinced that: a) we need to be incentivising more babies (whilst the UK birth rate may be below replacement level, the planet cannot sustain population growth); and b) that CB would be the way to do this if we did. The better way would be to fund childcare, allowing more productivity in the workforce.

I get that being shortsighted about the falling birth rate might be economic suicide, but the alternative is ecocide. There are alternatives to a falling population (incentivising immigration) but no alternatives to an uninhabitable planet.

idontthinksodou
They should change it so it's based on household income not based on an individual earner being over £50k, it's not fair at the moment“

yes, this ^

I’m not convinced that: a) we need to be incentivising more babies

@rainbowmilk

😂😂😂 Who is incentivised to have another child for 14 quid a week?

Well yeah, that was my b) point. 😂

So as long as one parent gets below £50k per annum, you can claim CB regardless as to what the other parent makes?

So you could claims this if one parent earned 49k even if one parent earned £150k?

That can’t be right surely.

No both parents have to earn under 50k

But both parents can be on 49.9k so a joint income of just shy of 100k whilst you can have another couple with one parent on 55k and the other on 20k so combined income of 75k and not receive it as the tax assessment you have to put in doesn't make it worth it.

You can also have single parent household or 1 parent stay at home and the other on 55k and not receive it.

Hence to many the 50k blanket rule doesn't work given every child is supposed to be entitled to child benefit. But the tax you then have to put in cancels it out.

Think this might be on the cards after New Year.

Thank you, makes sense.

It's changing in the spring.

Also YABU - it wasn't a budget, it was a "fiscal event"

The full amount at £49k each. Once a person hits £50k the amount they get is gradually reduced. Once someone in the household hits £60k, they get nothing. You can still claim it, but have to pay it all back at the end of the tax year.

I think yabu unreasonable ab

I think that when the government set the amount required to live so low for those in receipt of state pension, job seekers and disability benefits, then I absolutely 100% do not think there's any justification for increasing the threshold for child benefit.

I think yabu about this.

However, I think its incredibly unfair that if you have a family where one person earns over £50k you fet nothing. But if both parents earn £49k so totally household income of £98k or even £99.9k you get it.

Hmrc have been incredibly aggressive in pursuing families

No. I think that there are better ways to support the cost of children - such as tax breaks on childcare costs

Wait until they’re teens. Will there be tax breaks for that? The eat and grow non stop. Huge amounts of food, clothes and shoes. I remember buying 13 year old ds 5 pairs of adult size shoes in about 9 months he grew so fast.

I think this is an interesting debate but it’s tied to the higher rate of tax bracket so will probably only change if that does.

Worth also remembering its income level after pension contributions and charitable giving , so if you’re only just over the threshold then you probably can get back under it, and it’s a gradual withdrawal of child benefit up until £60k. I find it difficult to see why you’d refuse a pay rise on this basis. But maybe just me!

its not fully means tested as to do that would cost more than the whole system; so it’s just pragmatic not ideological.

Child benefit should be scrapped and there should be more free hours of childcare from 1 years old.

Say 24 hours free from 12 months old until school age.

Would encourage a lot more women to return to work even if part time.

High earners absolutely do not need the child benefit

I agree with another poster who suggested it should be scrapped and the money put into providing childcare to allow women to go back to work without it costing more for childcare than you'd earn

This, a million times over.

Reason i said £75000 in terms of inflation. Partner earns 55k so we are eligible for half but i dont like the faff of returning half by self assessment. DH cant be bothered as it goes into my account and i use it for children swimming etc. I would be happy if i can just get simply the half amount directly. But i dont like it by getting the full and then return the half . its hassle. I can still keep £1250 something.

Thats whole idea behind it. i never calculated bringing the pay down to 50k could work better for us. we get around £195 pm

This

“Partner earns 55k so we are eligible for half but i dont like the faff of returning half by self assessment”

Wait… so you think it should rise just because it’s not enough money for you to be arsed filling out one simple form once a year for?!! 🙄

Well, thanks for proving that many of the “squeezed middle” are anything but.

I'm usually not one to judge on how you spend the benefit but again if you are using this benefit to pay for swimming and the likes then I don't feel it's necessary for you to have

This.