To think this epitomises the squeezed middle - HMRC shitiness

[lurchersforever]

So the weekend before Christmas I have received the joyous news that I have not paid enough tax this year so my personal allowance for the rest of the tax year will be adjusted so I can pay it. This will wipe out the pay rise I have just received (it was the teachers' 5.5% and the first 3 months were pretty much wiped out anyway as they were received in a lump sum in November so taxed more, so that what I received for 3 months was the same as I what I got for one month this month). Next month I'l get nothing as a result of the unpaid tax. I am due another pay rise next month as will start a promoted role so I'll see what that brings but it won't be much as not a huge step up this time.

Next month my mortgage will go up £100 as I've had to renew for the first time since the rates rose (it could be worse) and I also have to pay back pretty much all my child benefit from last year which, as a single parent with an ex who pays nothing (I am with CMS - he's low income but owns a house outright and has money for stuff he wants) stings a lot.

I did exam marking in November, which nearly killed me in terms of workload, and got £630, which is £100 less than the tax I owe so is essentially wiped out by that.

I'm so fed up. I earn a salary that I never thought I would and would have thought if I did it would be great, but disposable income isn't that different from what it was pre-Covid as a result of col etc, but, worse than that, every time I do get a bit extra it's taken away. Enormous increases in workload and stress for next to nothing in the end. What is actually the point in working yourself into the ground for it just to be taken?

Hence why I said the maintenance system isn’t fit for purpose.

If people choose to live in two different homes then they can expect their expenses to be twice as high. It’s personal choice and I say that as someone who spent over 10 years as a single parent

Well it's not usually a mutual choice is it? If your spouse leaves you how are you choosing to live in two separate households?

@lurchersforever unfortunately council tax is also going to shoot up. The Government gave Police officers a raise but a percentage of it has to come from already cash strapped forces so most froze recruitment and had a plan to start shedding officers. Therefore the Gov said oops sorry yes we didn’t think and have said to Police Commissioners, use your council tax allowance to the fullest to plug the funding gap.

Also a single parent and my income matches outgoings now, without food so petrol and food comes from savings currently.

Savings will be wiped out in a year, earlier if any emergencies occur. I work full time already.

You’re asking the tax system to solve something which is essentially a matter for the individuals.

Parents should pay appropriately for bringing up their offspring but you can’t make someone stay with you who doesn’t want to. The answer is to choose wisely in the first place and consider whether you could bring up that child should you be left as a lone parent. If I had my way I’d make sure that maintenance was collected through taxation and covered childcare so that the parent with the most care was able to work. So you’re only really left with a complete deadbeats not paying up and in which case that really is your poor decision in the first place

Being a widow isn’t a personal choice.

Life insurance is though

With regards to the child maintenance service there was a lady on here who used to work for them. Do a search on recent threads.
Anyway, they’re just a it was that they have a lot more powers than they allude to including taking into consideration his assets and valuing them. So if having that House saves him £1000 in rent they basically say he’s got £1000 in income.
I am currently doing the same with my ex’s Tesla because of course it’s not costing him much in company tax but it is quite a big asset, he certainly couldn’t afford to buy that himself

Life insurance is though

Not strictly true, I have 2 friends who only have insurance through their jobs not privately. One had a heart issue discovered in her early 20s & the other had cancer in her 20s. The costs to get insurance are prohibitive.

you’re only really left with a complete deadbeats not paying up and in which case that really is your poor decision in the first place

Not all deadbeats make it clear they are that way inclined pre dc though.

what did your online tax account say?

Is that right? So if someone is rent/mortgage free that then goes into the pot? Why isn't that on the calculator?

There’s a good reason for that

According to the poster, I’ll have a look through see if I can find it because it’ll be a thread that I was on
She was trained by the CMS on all of the basics, but she’s been through the process herself so she ended up knowing more than the Trainer
They called any collection of money that was owed that wasn’t paid voluntarily “a raid” which we all thought was very telling of the attitude of the CMS. Not very proactive and when they’re actually forced to do their job, it’s described as a robbery 🥴

@Gordonramsayatemyhomework
ask for a variation that will be declined then ask for a mandatory reconsideration which will also be declined and then within 30 days fill out
SSC2 form, get it to a tribunal which does take time but it’s all backdated when it’s finally awarded and then we have the fun of enforcement.
It drives me loopy because it is possible to get child-support awarded as part of the divorce i know people who have done it.
But they wouldn’t entertain it for me. Which is annoying because if he then defaulted, I could take him to the small claims court.

What an interesting viewpoint @Pleasebeafleabite . Are you also against the tax breaks purely for being married? I can support my children but I can't see a logical reason why the state rewards and supports people for being married and being fortunate/ scared/ stupid/whatever enough to stay that way.

There’s a good reason for that

You are the one saying it’s a choice though…

@lurchersforever i thought the tax breaks for marriage was because the gov encourage marriage.

Yes they do @Radishknot , but why, in 2024, should the government be encouraging or discouraging people's legitimate lifestyle choices? For example, I can think of two women with useless partners who also earn less money than them. Those women would be better off not marrying and the government shouldn't be trying to have an influence on that personal element of people's lives.

That’s a bigger conversation though isn’t it & legally there are some protections that come with marriage depending on circumstances. I don’t see it changing any time soon.

Can you increase your pension contributions? This would reduce your taxable pay - you could also arrange for any one off bonus or payment such as marking to go straight to your pension scheme. I would be Checking with an accountant for options and HMRC fo the correct tax code. If you are part of a Union can they offer any financial advice?

Thank you for the suggestions regarding pensions but honestly I am working to be better off now, not in the future. And as a single person my teacher's pension cannot go to my children if I die, only to a spouse so even less of an incentive there.

@Radishknot it's a joke to be honest. Plenty of people marry multiple times often (obviously not always) creating quite a bit of havoc and disorder across multiple families and yet their choices are seen as socially responsible and desirable and are rewarded by the state, while my choice of remaining single and focusing on my children and career is effectively punished.

The most the marriage allowance yields is £252 a year for someone whose partner’s income is less than the personal allowance. It’s less than a fiver a week. It’s hardly an incentive to marry or stay married. IHT is a different matter but you’re dead for that and presumably beyond caring.

They could choose to fund the higher premiums or accept the risk that if they die young they will have to make alternative provision for providing for their children.

Do you think that other people should pay additional premiums to fund them?

Absolutely. I think everyone should get the same tax allowances. This country went to shit after Blair and Brown introduced child tax credits for people who didn’t need them. It’s held down salaries for 20 years