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.

I pay a lot of tax too, have worked since 16 and am helping the planet by not having kids at all. Where’s my help? Everyone seems to have their hand out, where do you think this money comes from?

As others have said put more in your pension.

I am currently pregnant with our first baby, and I earn too much to get child benefit but I don’t feel angry about it because tbh we don’t really need it.

I also get it.
It seems a strange argument that £20 is nothing to those earning over the threshold and everything to those under the threshold.

Being in the top 10% of this country's earners doesn't make you average.

@MaidOfSteel
*You'd think nobody else actually paid any tax, wouldn't you.

Well off people moaning is sickening*
More than half of all households received more in benefits and 'benefits of kind' than they paid in tax. Lots of people wrongly assume because they pay some tax that they are somehow 'paying their way'. This often simply isn't the case and they are being propped up by other tax payers.

It is natural that there is going to be a cut off point where people not only stop receiving benefits that top up earning but also where people are expected to pay more tax. If you have ever received a promotion that has taken you into a new tax bracket or pushed you over the limit for a benefit entitlement then you will understand how demoralising it is to end up working harder with a lot more responsibility for sometimes the same or even less money. I don't think it's wrong or sickening for people to find this hard to deal with and question the system.

I don't know why you expect people to gladly accept that they should be increasingly paying into a system that they get less and less from.

yep

My contribution to 'the debate' is - hard luck and suck it up. You don't need child benefit. You need to learn how to budget your considerable income.

As for saying 'I don't get anything for paying my taxes' maybe it's not all about you and taxes are for the greater good.

We have a situation where I live with my DH who is my DC’s stepdad. He earns 80k and I earn 30k. I can’t claim CB because he earns over the income threshold. But he has no legal obligation to provide for them or legal rights as a parent over them. If I was to get it, he’d have to pay it back through self assessment. As our money goes into one pot it wasn’t worth the hassle. I don’t need it but it annoys me that if we were earning 49999.99 each we’d still get it and that’s the bit that needs to change I think.

The way it has been set up is very unfair as households on just under 100k if 2 parents earn 49k each will get full child benefit but those on 60k between them wont if one parent earns 51 and the other is on a low or no income.
But it was set up to be simple and consistent with the tax system to make it easy for HMRC to administer.
Originally child benefit was a universal benefit and I think it should have stayed that way

For me it's the system of paying back that is way too complicated. I'm PAYE and the government know how much I earn so they should just reduce how much I get or take more in tax if I go over the threshold. I checked my annual salary in March last year and was going to be about £4k over £50k so I looked into how to pay it back and it would have been a self assessment form which seemed too much hassle, so I just put £4k extra in my pension that month and sorted.

They did an assessment on me a few years ago and I had a temporary pay increase so had to pay back 1 years worth but was fine for all the others they checked, but had to provide loads of evidence for gift aid payments and pension payments. It's a lot of work for me and them and should be easier.

The threshold probably should move but all you’re doing with your suggestion is moving it so YOU benefit, you’re not solving a problem you’re just coming across as entitled and whiney. It sounds like you’re not willing to pay more pension to get it or change your lifestyle and so want help funding that.

the change I’d make is base it on household income not singular income. FWIW we still probably wouldn’t get it then so it’s doesn’t help me anyway.

I think it’s silly and should be done by household, a single parent living in London on £60k wouldn’t get it, but a couple living in Yorkshire on, say, £45k each would be able to claim…£60k sadly doesn’t go as far as you think in todays climate, particularly if you have hound kids and it’s the only salary.

It's a few years since I lived in the UK, so while I was aware it had changed, I still don't really understand. It sounds complicated...tax returns and paying it back and sliding scales etc? Do you really only get it for 2 kids now?

I think universal child benefit makes much more sense, thats what we get.
I get CB for 3 of my 5 children (the oldest two are over 18 so not for them), and we get 420€ per month. Except next month, as a COL bonus, we get 720€ for June.

I find it really confusing.
DH is on 48k.

Once he reaches 50k are we only entitled to a proportion, how do we pay back what we have been overpaid?

Stupid system, no the wonder people can’t be bothered and stick the extra in pensions!

Not sure on the logic of this...if you married someone who earns nearly 3 times your wage but wouldn't share finances with you or take responsibility for your children, that seems like a you thing rather than a need for a benefit from the government? I mean, you have a household income of 110k....why would you be able to claim CB?

I think more things should be universal, and I’m a Tory (not the best place to say this, I am aware).

Means testing certain things (eg pensions) penalises people who have worked their arse off. A tiny pension disqualifies you from getting literally everything for free, why actually bother saving and working hard?

The CHB threshold annoys people more due to how nonsensical it is taking into account the highest earner not household income. Which moron decided that?!

In such a controlling situation, wouldn’t the man just arrange it to have the payments sent to his account? Or just take it from the woman if sent to her account?

Not asking you personally, I just see that argument a lot, but I don’t understand how CB allows a woman to keep some financial freedom when the man is so controlling.

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??

It was a deliberate decision by George Osborne, part of his policy of trying to reduce the benefits paid to parents of children not in paid work and rewarding traditional households. A lone parent earning the same as you has even more right to complain. The cap has not risen since it was introduced, despite the increase in inflation and a reduction in real terms income. The costs of administering universal child benefit - and state pensions - are minimal because everyone eligible qualifies. Politicians don't like this because they are mostly more interested in making a political point than running an efficient state.

How do you get nothing back for your taxes?
Don't you use the healthcare system?
Education?
Ever needed emergency services?
The list goes on.
Taxes don't just fund benefits you know.

In terms of getting something back for your child, did you not get maternity pay to allow you to take leave from work? Or use a NHS hospital for pre-natal care and childbirth?

I think the problem is that people earning over the threshold are taxed quite heavily. Child benefit withdrawal wouldn’t be a issue if it weren’t for more and more people being dragged into higher tax brackets. All the cliff edges in the system mean that unless you are on a meteoric rise in terms of pay or progression you can end up working harder for what feels like very little improvement in your circumstances. It’s all very well telling people not to moan because they are lucky they are doing ok but many people have to take on additional mental load and hours to progress.

I think single parents should be able to claim CB regardless of income tbh.

I find it amusing all the people using CB as a shining example of why we can do means testing to shaft older people, whilst still moaning that the CB setup is crazy and unfair!

I think you have to do self assessment forms every year and pay it back or not claim.

It wasn't straight forward working out if we were going to pass the threshold due to DH changing jobs as you need to look at adjusted net income.

But it is just easier for DH to stick £50 in his pension.

If you need an extra £20 a week when you're earning over £60k, you've gone wrong somewhere.

Instead of taking tax cash back, drop a bill or two to save the £20. Cheaper phone. Cheaper car. Cheaper sky package, cheaper holiday, 1 bottle of wine a week instead of 4, £180 on your weekly shop instead of £200.

A £60k salary divided by 52 means you're earning £1100 a week. If you need £20 more, you're budgeting wrong. If it's just a sense of entitlement, grow up.

Very well said! But our society has become very selfish. I wish you the best with your treatment
Also thank you for having contributed to the system