To feel like the government is robbing me via taxes... Child Benefit and single parent income

[oreo2020]

I am a single parent of 2 teenagers, live in London and have a professional job. The last 2 years have been so much harder financially, to a point where I am now doing a vocational training so I can work in the evenings / weekends to top up my income, this is on top of my challenging, long hours, civil service role at Grade 7. As I earn over 50k (but below 60k), I have to do tax returns and pay a big chunk of Child Benefit back.

I've just looked at inflation.. so CB for higher earners was introduced in 2013. The value of £50k then in 2013 is equivalent to £66.6k now, according to Bank of England Inflation Calculator. As a civil servant I barely had any pay increase since. There is £1500 one off pay that's coming for civil servants... when I deduct 40% tax, NI and the child benefit I will have to repay in relation to that, I get £650 worth out of £1500, for fuck's sake.

The government has shut down all attempts so far to increase the threshold or equalize it for single parents. It's just so unfair as I am trying my best to keep my head over the water. AIBU?

@FastBlueHedgehog I do feel like I live for my future pension otherwise would have left for the private sector.

HMRC look at the household for CB claims. At least they did when it was set up. Which did lead to a lot of non parents getting letters. They have databases which show everyone living at an address for
example.

I am also a G7 and agree with OP re the CB threshold. A lot of colleagues don’t bother applying for promotion. I also think the 40% tax band starts much too low.

@Idratherbepaddleboarding thanks so much, I was wondering if it was worth writing my MP but it seems like dead end. CB is so inadequate and 50k in today's money is no 'high earner'.

Can you please copy and paste that link in your email, I'd like to read what exactly was debated back in February.

YABU, you're earning well over the average. You shouldn't be able to receive any benefits and should be taxed more. People earning 50K+ should pay a lot more in tax than they currently do.

It isn’t true that it’s done on individuals in isolation, either. Because if either adult in the household earns over the cap, regardless of who actually receives the benefit, that person has to pay it back. Me and DH are both self-employed and who earns most in any given year varies, which means who has to account for the CB varies (fortunately both have the same accountant who just sorts it). But my DH, who is not the father of the two kids I got CB for, has had to pay back the CB in previous years.

Her entire household income is £50k!!
Are you suggesting that she should pay more tax than Bob and Brenda next door who earn £25k each? She ALREADY pays more tax than they do!
You're basically suggesting penalising professional single parents.

The whole CB changes are a complete fuck up though and generally disadvantage women. SAHP married to high earners won’t claim it, but then don’t get the contributions for their state pensions like they otherwise would. And if you don’t claim CB for your kids, they won’t get their NI sent at 16 - you can claim but tick the “don’t receive” box to get round this - but how many people are aware of this?

https://hansard.parliament.uk/Commons/2023-02-02/debates/0D9BCE1C-7045-4F71-BDD5-E4597555A09D/HighIncomeChildBenefitCharge?highlight=high%20income%20child%20benefit%20charge#contribution-B03EF86A-87C4-452D-A3BC-5BE9B16C1FDE

Here you go @oreo2020. It is a dead end but the more people that make noise about it, the better!

Where’s the children’s father, what is he paying towards their upkeep, surely that makes a huge difference.
If he’s self employed and claiming he only earns £5k pa to avoid paying CM then your anger needs to be directed at him. If he’s paying £2k per month then it’s your budgeting that needs working on.
More information required.

Irrelevant to OPs point about Child Benefit

Thankfully no one in charge thinks this.

Politics of envy as usual.

That’s irrelevant, ex-partners don’t count towards any other benefit so why should they for child benefit?

I've just used net income calculator:
take home pay at 25k x 2 is 3500
take home pay at 50k x 1 is 3168

Difference of £334 before you start on CB.

@Fairyliz don't feel this is relevant at all, but the father has left for his home country and is unwell, he supports where and when he can but that's not much at all (he isn't a deadbeat father).

The current system is patently bullshit. Two people earning 49k can get full CB whereas a single parent on 60k would not.

The issue is that the payments/repayments are done via the tax system, which is based around individuals.

And it's a fair point that the threshold has not gone up despite inflation.

YANBU. I’m a single parent, also earning just over £50k now so having to submit a tax return for last year to pay some of it back.

The way that it is determined is completely discriminatory towards single parents. A sole parent earning £50k is not anything like a couple where one parent is earning £50k and the other is a SAHP. As sole parent you are both the sole provider financially, and also the one who has to provide / pay for childcare in the holidays/ appointments/ children being off sick / school drop offs etc.

@Dotjones good to know I am considered so wealthy that I need to pay more tax..

And people still openly resentful if someone does manage to juggle all of the above and be successful.

@Idratherbepaddleboarding thank you for the link

You’re very much not being unreasonable.

It’s awful that the upper limit for CB hasn’t been raised along with inflation - perhaps not surprisingly but awful. Also the fact it’s based on one person’s income and not the household is so discriminatory- you can have two parents earning just under but not one earning just over. Needs to change.

Civil servants have had an awful time. Working behind the scenes all through the lockdowns - not allowed to be furloughed and also the jobs were needed - with no thanks or recognition. Pay freezes just after. Pay not keeping step with inflation.

The one off payment looks good but employees will receive such a reduced amount.

And then the actual government constantly saying how awful CS’s are!

Yes, all of this

YANBU I actually wrote to my MP about this. I suggest you do the same.

You are absolutely right to complaint and as a single parent your income is good but you lack another income . The reality is a 50 k income after tax is not much more than 2 people on the minimum wage . Those criticising you need to give their head a wobble