To feel annoyed about child benefit threshold?

[Mirenda]

I earn not far over the threshold to claim child benefit so am not going to put in any claim.

Maybe it seems completely unreasonable to many but given the large amount I pay in tax and NI every year, I feel annoyed that we get nothing back for this, especially with costs of absolutely everything going up.

If we could claim it, we would use it to fund baby related groceries or the heating bill in winter, both of which can be quite expensive.

I don't understand why the threshold can't be more towards 100k mark like the childcare costs threshold as once you're into six figure salaries that's a different ball game (although those people also pay hefty amounts of tax so why shouldn't they see something for it too?)

I expect to be slated for daring to question any of this as someone who earns a comfortable amount but when you've put into the system over the years, it would be nice to get more back when it's for your child.

I have a very wealthy elderly relative who still received the government's pensioner cost of living payment last year regardless of her massive income. They didn't means test that but they will set limits and thresholds for benefits for children rather than make it more universal.

If you're not far over the threshold and really want it why not whack a bit more in your pension? You'll get the 40% relief and then the benefit.

I don’t disagree but here is the problem. You’re happy to shift it even higher. The 100k earners you describe who lose childcare, and their personal allowance have an effective tax rate of over 100%. They clear less for earning more. If they don’t use childcare it more 70% tax. Why should an ever decreasing pool of people fund everyone else by paying those rates of tax?

Why not just put more in your pension?

It's a sliding scale between £50-60k, so you lose all your child benefit at £60k and keep all your child benefit at £50k. When you say you earn just over do you mean just over the £60k?

Would you be able to afford to plough into pension? So let's say you earn £60k.....if you bung £10k per year into pension, suddenly you'd be at £50k for the purposes of the child ben calculation and able to claim it again!

I do agree with you, the threshold isn't changing with inflation and actually £50k isn't some silly wealth, and the child benefit is meant to benefit the child!!!

Pay more pension?

YANBU.
The earning cap has been the same for over 10 years and it’s been well documented that the purchasing power with the same salary has been considerably reduced.

When you say not far over the thread hold does that mean the lower end or the higher end?

We are just at the lower end of when it starts to reduce, it’s frustrating because pay reviews in work are performance based rather than company wide so they only come with immense project work. It’s a bit disincentivising as we will effectively be on a pay freeze for at least 3 years as anything we gain in salary will be removed in CB.

Stop moaning and bashing others and try thinking creatively about how you can maximise what you do have. Put more in your pension for a start.

I agree the limits are odd - and if there has to be a threshold it should be based on household income not individual income.

But, you should still submit a claim - you can choose to not be paid the money, but it will add NI credits to protect your state pension entitlements while you may not be earning at your full potential when your child is young.

Like the others said if you are only abit over put it in your pension then you can still claim. It is also worth still putting in a claim and then getting it changed to a nil amount rather than not claiming as the child benefit will then give you ni credit if at any point in future you didn’t work while child is 12

Or get your car via salary sacrifice at work? Or anything via salary sacrifice - childcare vouchers? Or buy additional annual leave?

Or donate more to charity?

Unless you are earning over 60k you will still get some child benefit.

Put enough into your pension so that you stay below the threshold.
The rules are mad because of the discrepancies it creates. A single earner on £51k won't get it but a household with 2 earners in £49k will.

To clarify I earn just over 60k - I wasn't aware about the pension thing so will look into that. I planned to do full time hours also when I return but I guess if I ever reduced them I could also potentially be eligible.

I'm not sure I want to make too many radical changes to claim it though- it's more the principle that threshold hasn't changed for a while despite inflation etc

This is the bit that drives me bonkers. As a single parent, I am just over the threshold and don’t get it. Friends with significantly higher household income (and less pressure in other areas of childcare) do get it. Madness.

Ill get my tiny violin out OP

A single earner on £60k not £51k.

On 51k, after pension, after salary sacrifice, after charitable donations etc ... they would still get almost all of it.

I know your point is the same for £50 or £60k but just in case it stops people on £50k claiming

They already pay it. It’s not a new tax on them.
It used to be universal which I don’t disagree with but tories gonna Tory.
But what is interesting is that means testing is made out to be so expensive and not worth it for other benefits like the winter fuel allowance!

The whole thing needs massively addressing.
A household income of 50k from a single salary is actually not well off and it’s even worse when a household income of 99k but from 2 equal salaries keeps their child benefit.

This is crazy as I earn just over 60k but my partner is on 25k. If we both earned 49k we'd have more household income AND could claim. It's insane, who makes these rules??

I agree the limits are odd - and if there has to be a threshold it should be based on household income not individual income.

this cannot be a serious post? You cannot really think every household is some happy family. There is everything in there, from new partners to separated and living together to the abusive financial controlling ones. Of course it shouldn’t be on household. This isn’t Disney land.

@ArcticSkewer I know your point is the same for £50 or £60k but just in case it stops people on £50k claiming

To be fair I think the self assessment element does make quite a few people stop claiming at 50k!

That's your choice.

I do all of the above and still claim it and therefore don't have to whine about how unfair life is on my salary. My pension looks great too.

It's a bit like the help for prescriptions. Wages have crept up due to min wage rises but the threshold hasn't moved so some people are being pushed into paying prescription charges when their real cost of living circumstances haven't changed.

Household income of £85k and you're annoyed you can't get £20pw CB, I've heard it all now.

I know.

I've just never understood how people earn £60k (a lot where I live but perhaps not much in other areas) and don't have basic maths and accounting skills. It's usually worth doing self assessment if you donate to charity and have professional subs (mind you, those you can add to tax code these days). I've pretty much never not done one. Always get at least a few hundred quid back.

What an interesting contribution to the debate.