High Income single families losing Child benefit

[ReturnoftheMe]

Hi there - I know this has been talked about extensively over the years, but I wondered if anyone has been following the topic and discussions around it in parliament for the future? Are there any changes to come for the next budget?

I am a single mother with no input from my 2 kids father. I live in London work full time and currently cannot afford to put my 2 year old in nursery as fees are too high, and I am not eligible for any help (fees are 2k + a month in my area). Luckily my mother has stepped in, but without her I'd have to claim benefits and not work, or I'd have to dial down my ambitions and go for a part time job which puts me at a disadvantage in my work place.
This year I will gratefully receive a bonus that just about puts me at the point of not being eligible at all for any Child Benefit down to the penny. This really bothers me because all the families I know all receive it still. Some really high earning self employed couples who manage to complete tax returns that keep them eligible and even my own brother, both him and his wife earn 50k and 46k respectively and they still get CB for their two boys.

When is this going to change in order to be fair for single mothers like myself? I cannot afford nursery and I also do not get any child benefit. Something is incredibly wrong here.

Am I being unreasonable to feel as though this is unfair to single mothers?

Yes it's unfair, you've given an example where a couple can earn 99k, but a single person can't earn 50k without going on to the sliding scale of repayment.
The way it's done is a blunt tool, but I guess there would be a huge admin burden to do it differently? It may change when Labour get in, who knows.

Single income households get stung on tax too - two people earning 99k combined will pay far less tax than one person earning that alone - 2 x personal allowances and little if anything at the 40% rate for the couple.

The biggest change I would like to see for your circumstance is that the absent parent can't - without good reason, maybe there is one - have no input.

Can't you increase pension contributions slightly so you are under £50,000?

can you discuss with you employer and ask for your bonus to be paid into your pension?

Obviously, I agree it's wrong and unfair!!

Perhaps u should speak to an accountant? There are several ways to make better use of your allowances.

Or an IFA? Restructure things, get you child care paid out of wages, bonus into pension extra contributions save you a fortune.

It's a very stupid rule. I still can't fathom how on Earth anyone thought it was a good idea.

It is definitely a very unfair, arbitrary system. I can't believe there's anyone who thinks the method is reasonable.

Your mention of the self assessment is odd though. If you do end up going over the £60k threshold in one year, you can also complete a self assessment and have your next year's tax adjusted.

As others say, look at paying additional contributions into your pension and bring yourself back under the threshold.

I lost mine too despite the reason for not working full time was my DD's disability - my ex earned £65k not a huge family income

This ^

It’s not fair on anyone as the limit hasn’t gone up since it came in 10 years ago and we all know how much more expensive everything is now.

I think it’s completely unfair for you to lose your child benefit and equally unfair for singles who don’t have children who get penalised in tax when they earn above 50K

They really have to change this. I hope this becomes Martin Lewis next campaign.

Some really high earning self employed couples who manage to complete tax returns that keep them eligible and even my own brother, both him and his wife earn 50k and 46k respectively and they still get CB for their two boys.

I feel the issue of slightly above average income couples being dishonest on their tax return is another issue though and it does need more attention, but tbh I’d rather more focus went on the super high earners and big corporations that are dodging tax.

As PP have pointed out there’s a lot wrong with the income tax system generally.

It does seem unfair, but it's such a piddly amount of money anyway that I don't really understand why anyone would bodge their tax returns just to receive it

I also think this is the best way round it

Some companies have a scheme where you can deposit bonuses directly into your pension (tax free). Could this be an option?

Sorry just realised it cut off the original post which said increase pension contributions!

This it sounds like only a small amount would need to be paid into your pension.

The child benefit thing is unfair that couples on £49k each get it but a single mum on £51k doesn’t it’s mad!

Definitely unfair on single parents.

Don’t have the same sympathy for couples where only one works. That’s a choice and you’re saving a fortune in childcare in the early years.

£65k not a huge income? It’s like a parallel universe on here sometimes.

It's been unfair since the changes were brought in, because it allowed couples who made just under £100k combined to keep child benefit, but it meant single parents or one-income families who earned over the threshhold of £50k lose it.

We lost it. Made it really hard for me to work normal hours, so dialed back.

Lucky for you eh.

@PlaidCushionProductions , @ThinWomansBrain @Theoneandonlyjrae I can increase pension contributions yes, but as @Doggymummar mentions, maybe I need the help of an accountant perhaps to tell me what the best way around it is. I do not know how much to divert for it to make it worth the hassle My salary is £55k, and I pay about £200 each month towards my student loan which is quite a hefty repayment. My bonus put me at £60k on the dot, so it means I will have to pay every penny back. I was not expecting this bonus amount, otherwise I would have saved money aside. Instead I have accessed my online account and opted to stop receiving CB all together for now, rather than having to pay it all back.

CB is not a huge amount to those who pointed it out, but I think it is just the unfairness of it and the fact they call it "high income charge"... I am not saying £50K is a low salary, but for a single income with two families in London, it is not by any means a huge amount. I barely scrape by each month and I think going into the new year, it has really got me down. I should feel grateful that I earn "decently", but the fact that I can't afford nursery and I have CB taken away just feels like a sting and majors me fee disadvantaged. I wouldn't want it taken away from any other families but perhaps for the government to bring the "high income" amount up in line with inflation. It should be nearer 70K and it should be adjusted for single income households.

@Sd1960 £65 is not huge at all, especially on 1 single income for a family with two children and one being nursery age.

@ANightmareBeforeChristmas exactly, there is that point too. It boggles my mind how these points are being discussed but yet overlooked year in year out.

@arethereanyleftatall their father lives out of the country and has been off employment due to depression, so, no chance of that changing anytime soon, and even if it did, he has categorically told me he wouldn't be contributing to nursery but may help out to some degree if he can. Just meed to figure out if I can force child maintenance on him while he lives in a European country.