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Should families get a tax allowance for dependant children

443 replies

Clariee45 · 24/09/2023 16:04

Just a thought from another thread about there being no help for the squeezed middle who feel they are hardly better off than those on universal credit. Wouldn’t it just be fairer if those families not entitled to universal credit were given an extra tax allowance equivalent to the adult personal allowance for each child.
Why are adults given a tax allowance that acknowledges the basic costs of needing to eat and have a roof over there head etc and yet parents are expected to provide all this (plus 80% childcare costs) for their children completely out of their taxed income

OP posts:
Insommmmnia · 26/09/2023 09:25

PaperDoves · 26/09/2023 09:14

Well, yes, except you also get tax breaks for the children. So a single parent with two kids on £100k would be better off than two married people on £50k each with no kids.

The US tax system is also much more generous. At $100k you've just about squeezed into the 22% bracket, and at $200k you're paying 24%. The highest bracket is 37% and you don't hit that until nearly $600k. Plus all the extra tax breaks for having kids. (Not saying it's better than the UK, which basically has its health insurance built into the tax system so it's swings and roundabouts really. But you're definitely not disincentivised from earning more money, by the time you lose the US child tax credit you're such a high earner that the credit is basically pennies to you.)

I'm not really in favour of a tax system that negatively impacts single parents even if it does put them in a better position than a childfree couple

I think single parents are continously under considered and undersupported and I don't think it's a coincidence that this is the case in two countries where women are disproportionately impacted by this.

Pleaseme · 26/09/2023 09:25

BIossomtoes · 26/09/2023 09:19

You can’t pick and choose how you’re taxed. That would be fiscal lunacy.

Works ok for the Germans!

HangingByYourFingernails · 26/09/2023 09:32

BIossomtoes · 26/09/2023 09:19

You can’t pick and choose how you’re taxed. That would be fiscal lunacy.

Loads of countries allow joint taxation on an optional basis, including the UK up until 1990. They're not all lunatic.

England gives you the choice to transfer tax allowance between married couples, to collect or not child benefit, to allocate capital gains between years. A certain element of choice is a normal part of most tax systems.

WhatATimeToBeAlive · 26/09/2023 09:36

Or perhaps the child-free could pay less tax as they use fewer public-funded services?

Don't be an idiot.

caringcarer · 26/09/2023 09:43

Clariee45 · 24/09/2023 16:04

Just a thought from another thread about there being no help for the squeezed middle who feel they are hardly better off than those on universal credit. Wouldn’t it just be fairer if those families not entitled to universal credit were given an extra tax allowance equivalent to the adult personal allowance for each child.
Why are adults given a tax allowance that acknowledges the basic costs of needing to eat and have a roof over there head etc and yet parents are expected to provide all this (plus 80% childcare costs) for their children completely out of their taxed income

Adults get the allowance against their tax because they work and contribute kids don't. They will get it once they are adults.

BIossomtoes · 26/09/2023 09:48

Children have the same personal allowance as adults. It’s just not transferable. The loss to the Treasury would be huge if it was and tax rates would have to be raised to compensate.

PaperDoves · 26/09/2023 10:02

BIossomtoes · 26/09/2023 09:19

You can’t pick and choose how you’re taxed. That would be fiscal lunacy.

Of course you can, many other countries do. You can choose to be taxed individually, or together with your spouse as a household.

PaperDoves · 26/09/2023 10:08

Insommmmnia · 26/09/2023 09:25

I'm not really in favour of a tax system that negatively impacts single parents even if it does put them in a better position than a childfree couple

I think single parents are continously under considered and undersupported and I don't think it's a coincidence that this is the case in two countries where women are disproportionately impacted by this.

Single parents are going to have it harder in many ways, but I don't think you have a good reason to say the US tax system in particular is unfair. For one, they offer a head of household filing status for unmarried people with dependents (doesn't have to be your kids, could be an ailing mother or a nephew you've taken in, for example). Of course that won't make up for having another parent on the ground but with respect to taxes, specifically, they're not getting a bum deal.

ACynicalDad · 26/09/2023 10:12

You could give everyone the £10kish tax free amount and let them transfer it to anyone else in their household.

Insommmmnia · 26/09/2023 10:25

PaperDoves · 26/09/2023 10:08

Single parents are going to have it harder in many ways, but I don't think you have a good reason to say the US tax system in particular is unfair. For one, they offer a head of household filing status for unmarried people with dependents (doesn't have to be your kids, could be an ailing mother or a nephew you've taken in, for example). Of course that won't make up for having another parent on the ground but with respect to taxes, specifically, they're not getting a bum deal.

I didn't say the US tax system in particular is unfair. I didn't even bring up the US tax system as a comparative factor I just asked a question about it.

And any tax system that gives a better deal to couples than single people means single people are getting a bum deal, regardless of whether they are getting benefits that couple are also getting (and getting better ones) I'm not talking about the US in particular. I am talking about in general.

MrsSkylerWhite · 26/09/2023 10:54

ZeldaWillTellYourFortune · Yesterday 18:43

Society won't collapse without children.

There are 8 billion people on the planet, most of whom are very young. Immigration shifts can make up any birth rate shortfalls”

Not if this Government has anything to do with it. Don’t you know? Immigrant = bad lot.

Thatladdo · 26/09/2023 12:38

MrsSkylerWhite · 26/09/2023 10:54

ZeldaWillTellYourFortune · Yesterday 18:43

Society won't collapse without children.

There are 8 billion people on the planet, most of whom are very young. Immigration shifts can make up any birth rate shortfalls”

Not if this Government has anything to do with it. Don’t you know? Immigrant = bad lot.

What society are we talking about?

If "we" means British / UK then if "we" didnt have children and simply imported children / young adults from other countries or allowed them to come unchecked to replace us then yes, British society would dilute then cease to be or collapse to use a different word.

Oh wait, hang on a minite......... 🙄

If you meant human civilization, thats a much more dynamic and bigger question.

MrsSkylerWhite · 26/09/2023 12:39

Wasn’t my suggestion. Was commenting on someone else.

Zampanò · 26/09/2023 13:03

Thatladdo · 26/09/2023 12:38

What society are we talking about?

If "we" means British / UK then if "we" didnt have children and simply imported children / young adults from other countries or allowed them to come unchecked to replace us then yes, British society would dilute then cease to be or collapse to use a different word.

Oh wait, hang on a minite......... 🙄

If you meant human civilization, thats a much more dynamic and bigger question.

I don't think society would be in great shape if we denied pensions to anyone without kids either.

PomegranateRose · 26/09/2023 17:35

OlizraWiteomQua · 26/09/2023 08:58

Calculating child benefit on shared household income hands more power and control to abusive and controlling partners and makes it impossible for abused wives to start building up an escape fund, and makes it impossible for child benefit to be ring fenced for the benefit of the children. It would be morally repugnant to throw these most vulnerable women under the bus because some wealthier households miss out. I agree it's not fair that some wealthy people get CB and other wealthy people don't, but solving that unfairness would literally kill people so it's an unfairness I can live with.

Any state support for families with children absolutely must be done through increasing child benefits and child tax credits, not by increasing the tax free allowance. This is because if you do it by increasing the tax free allowance the primary beneficiaries are wealthier households, with the poorest households seeing no change. That is also morally repugnant.

This precisely! I don't support adjustments that end up most (or indeed only) benefiting the most well off in society already. Measures like these should be weighted toward those who need the help most, if they aren't going to be universally consistent.

Porridgeislife · 30/09/2023 15:12

I just want my childcare to be a tax deductible expense. It is after all a cost of employment.

That would make a huge difference to the squeezed middle.

BIossomtoes · 30/09/2023 15:14

Porridgeislife · 30/09/2023 15:12

I just want my childcare to be a tax deductible expense. It is after all a cost of employment.

That would make a huge difference to the squeezed middle.

So is travel to work. You already get 30 tax payer funded hours.

Porridgeislife · 30/09/2023 15:59

BIossomtoes · 30/09/2023 15:14

So is travel to work. You already get 30 tax payer funded hours.

Once your child is 3. Not before then (currently).

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