Waiting with baited breath! What will the chancellor do with CB on Wednesday.

[chickydoo]

Probably been done to death, but holding my breath to see what the budget will bring for child benefit on Weds? Will there be a U turn?
What do you think will happen?

Sorry - is this 50k GROSS or 50k NET income?

"the HR taxpayer will have to tick a box on their tax return confirming that someone living at their address is claiming CB?"

But what if the HR taxpayer doesn't currently fill in a tax return because everything is collected through PAYE?

Still means more tax returns required = massively more administration.

The thing with the issue of 'unfairness' is that it tends to be in the eye of the beholder. if CB was going to be means-tested there has to be a threshold - and wherever that threshold was it would seem unfair to someone. We can all say 'Wow! That couple earn 100k each, they don't need CB' and most people would agree. And we probably would all agree that a single-earner of 30k should get it. But there is a massive grey area in the middle and most of us fall into it.

I would have no problem with a fair household income test whatever the threshold. I don't know if this affects me or not as only know hubbie pays 40%, but I still think its unfair.

Spam - £50k gross.

I am wondering about the childcare vouchers thing, that would take DH under £50k. Or he could ask his work to pay him £49,999.99p instead of £51,000.

Have I got the maths right here. £1000 over £50,000 means a 10% cut in child benefit? So the £1,000.01p cut in salary would work out worse off, the 10% CB would be better? I think we only lose £172 or something (have two kids).

Aha - thankyou for answering my questions PessimisticMissPiggy

So you can take off your tax allowance, your pension contributions, probably childcare vouchers, gift aided donations, then add back in any private health benefits, company cars, oh wait a minute... these are all the things that go to getting your tax code.

They're going to go by tax codes. Watch your codes, folks.

What makes me cross is that they're talking about making public sector pay regionally-variable. So what next? Child benefit that goes down by geographical area too because you don't need as much?

Even Mrs T didn't shaft women this thoroughly.

Thanks mumsneedwine.

Looks like HMRC need to change their website referring to adjusted net income then!!

And the bit about how they're going to do this for 12-13 is clear as mud. Would surely be worth their while in admin costs to just bring this in from 6 April 13.

But moonbells, with real time information this will all be a breeze!!

Agree spam. Jan 2013 seems an odd date !

Why does it say on HMRC site that this is for adjusted net incomes over £50,000? I am confused.

Also, pension contributions are protected, it says.

www.hmrc.gov.uk/budget2012/cb-income-tax.htm#a4

I still am confused! Is the phased out 1% drop for every £100 over £51,000 just based on the higher earners wage or do they do this on total household income?

Because if it's net income then that's obviously a lot higher than £50,000!

So is it based on the net income or not?

It is as clear as mud what the adjusted net income may be. And it's all based on one income. I really must go and do some work !!!

I can't see anything on the HMRC site clarifying what happens if you are living in a multi-generational home and a grandparent earns £50k+ There must be people in that situation.

This is still with the old figures.

www.bbc.co.uk/news/uk-politics-11465116

I was more interested in the potential savings, 1billion pounds. I wonder if they have factored in the costs of administering the new system, which sounds a bit complicated, and if people think there should be exceptions. There will be much form filling, phoning of call centres, assessing of claims, repayments of overpayments. It sounds like an awful lot of hassle.

They could save some money on CB by scrapping it for children not actually residing the UK, but leaving it as it is for children that actually are.

(NB, it doesn't affect us as we live abroad and I dutifully wrote a letter to inform them of this as soon as we left the country)

i am please as dh earns 46k at old 42k cut off would have lost out now with new
50k cut off wont lose cbs so relieved!!
i only do bettwere and look after 2dds 3 and 6 years
i need cbs for there clothes,shoes,xmas and bday presents and other bits they mite need
dh uses his wages for morgage and all bills

woo hoo! George Osbourne is my new best friend.

How much can the government expect to save compared with how much this will cost to administer. TBH it sounds a logistical nightmare.

Okay.... someone help me here. I am a separated mum with young children. I have a partner who earns over the £60k cut-off but he is not my children's father. I work almost full-time to contribute to the household and earn about 12k a year. I am going to lose my child benefit. My ex-husband earns just on £50k. Can I transfer payments into his name so we don't lose out for the sake of the children entirely?

The adjusted net income is poorly worded - I don't think it has anything to do with net of tax. I searched the phrase on the hmrc site and it showed an example of it in relation to pensioners - it was salary less pension contributions plus benefits in kind eg company cars.

Gross or net?

Big difference - HMRC link clearly state net income - but the media seem to be saying gross.