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?

Adjusted net income seems to mean income minus pension contributions and gift aid......could be wrong....

i had a mare enough with the tax credits system with dh's money as some is salary and some is dividends and "other incomes" so i still don't know where i stand? is there a helpline etc??

Joannaheather, isn't it household income? If you and your partner have an income of £72k - then, no you won't qualify for child benefit. If you split up from your partner and your household income drops down to £12k, then obviously you would qualify. If your DCs are resident with their father, then he should already be receiving their child benefit - not you. The benefit is for the household that the children live in.

No it's not household income - that's why people are cross. It's based on the income of one member of the household. I think your husband could claim Joanna as he has parental right. If you claim then it will be based on your partners income. Unfair ? Yes.

Oh, I thought it had to be where the children were resident. My DCs live with me & I don't believe that their father can claim for them, because they don't live with him - but I could be wrong.

I'm not an expert and you might be right about residency. Def worth a look though (must say on their website somewhere). Think you are in a very unfair position otherwise.

Are there really that many women out there who have no idea how much their husband/partner earns?

joannaheather technically yes, you can. But bear in mind that the parent who claims to CB is the parent who CSA will give payment too so depending on how good your realtionship is with your ex this could leasd to all kinds of issues.

Also, they sometimes look at CB when decideing on catchment area for schools so again, maybe not wise.

dueling i think most people, myself included, are being a bit facitious and just making the point htat we are independant people who do not rely on our men to support us. I know exactly what my DH earns (60k last year annoyingly ) but we choose not to share finances and he in no way shape or form supports my dd so I object to losing my CB for her when I earn a fairly low salary yet friends of ours who earn 100k between them (and have children together so share the burden) will still get it.

We choose not to discuss finances much, i don't want to be in a position where I'm having to ask him exactly how much payrise, bonus etc he has earned, it's not how our relationship works.

breadandbutter... might it be net!!?? [clutches at straws] If so, I wonder if that takes in to account CSA money paid? Double pisser that DH's ex get CSA and CB while I lose my CB.

[bitter] [should count blessings]

just called the help line and they don't know either ggggrrrr.

But BOM if he pays into a pension you might still get something... or if he makes donations to charity.

Looks like will be standard for anyone over 50k to complete a tax return. Suspect this ties in with their tax avoidance stance.

Here is a link to the HMRC blurb on this:www.hmrc.gov.uk/budget2012/cb-income-tax.htm
Looks like gross income.
There are some Q&As.

So DH will have to fill in a tax return now?? Surely this means A LOT extra work and money for them? Plus an enormous amount of hassle for DH who has never had to do one til now :(

Not net income as we would understand it I don't think - go on the HMRC website and search "adjusted net income" and it shows some examples (for different reasons but assume the phrase means the same), they talk about annual salary less pension contributions and plus benefits in kind. Nothing to do with tax coming off.

If you're under 50k - no need to do tax return

If you know you won't qualify - can just tell HMRC you don't want to claim it (I guess)

If you're earning over 50k but think you still qualify (in full, or in part, i.e. down to pension conts, charity donations) - then will need to do tax return (I'm guessing these people will claim child benefit in full, and then repay excess)

Now it's all online and as it's self assessment, not massively complicated for HMRC. Also not that bad to complete (and tbh, for someone like my DH, will be ultimately a good thing as he'll finally reclaim the tax back on charity donations - up till now he hasn't bothered as it wasn't worth the hassle).

traceyinrosso that's the whole problem you should never base the amount of children you can have on what hand outs you can get from the goverment

That is the disgusting attatuide that labour encouraged and god willing on the torys will get rid of the only earnings you should base wether or not to have a child is what you actually earn after tax

Sorry but. You should not be like oh the giveoment will give me this much I have there for I can have 15 kids If I based how. Many kids I could have based on what handouts I could get lady I would have 5 children

But we based how many children on oh wage and that number Is one child then after that child off I went for a implant we can't afford any more

VivaLeBeaver the people who need egging is labour the ones who encouraged this who entitlement culture in the first place

Ando those who are on 60k and above and are claming they and their children will starve if they don't get their £17 a week have a you can feed the starving family with it

And yes, think house mum is right - is the hmrc website being cryptic.

As I understand it they will pay me (non worker) the CB then claim it back through DH's tax code?? So does that mean that it will always be claimed back a year later than payment? Must make sure i don't spend it!

If DH earning over £60k (hypothetical qu) then by saying I don't want to claim CB will he not have to do a tax return? Also would this mean I lose my NI contributions as not getting CB (and thus affect by future pension)?

Child Benefit has been around since shortly after WW2 (although it used to be called family allowance and was not paid for the first child, but all subsequent children). It was not a handout from the recent labour govt.

Therefore I think families were not unreasonable in expecting it to continue and planning accordingly.

PostBellumBugsy - on that link it says

Legislation will be introduced in Finance Bill 2012 that imposes a new charge on a taxpayer who has adjusted net income over £50,000 in a tax year

so not gross

Mrbojangles1 No one on over 60k has said their kids will starve.

Mrsbaffled: this Govt has constantly failed to address the NI element of CB.

I think you will need to continue to claim CB in order to continue to receive it - and it is far too important to relinquish.

The new system is going to be expensive to run - even more so given today's fiddling around at the edges of a crap plan. I wish we could have sight of the expected savings v ever increasing costs running this (over-complicated) new system. I bet the expected savings are vanishing before the Chancellor's eyes and I hop he is rueing the day he was persuaded to announce such tripe.

Just found this

"Adjusted net income (section 58 ITA 2007) is the measure of an individual?s income that is used in calculating the existing income-related reductions to personal allowances for those aged 65 and over.

Adjusted net income is calculated in a series of steps. The starting point is net income, which is the individual?s total income (section 23 ITA 2007) subject to income tax less specified deductions, the most impor-tant of which are trading losses and payments made gross to pension schemes (section 24 ITA 2007).

This net income is then reduced by the grossed-up amount of the individual?s Gift Aid contributions and the grossed-up amount of the individual?s pension contributions which have received tax relief at source.

The final step is to add back any relief for payments to trade unions or police organisations deducted in arriving at the individual?s net income.
The result is the individual?s adjusted net income. "

So pension contributions and gift aid seem to be removed first - so if you pay a few thousand on that, then that will allow you to keep CB if between 50-60K.

mrbojangles1 - you need to express your simplistic thoughts a little clearer, by perhaps using some punctuation! Families living in the South are not rich in the 50-60k bracket if they have rent or a mortgage to pay. I did not base my decision to have 4 children on what the government would pay out. Child benefit was universal and given to mothers to ensure they had their own income. I stayed at home to look after my children in their early years as the price of child care is so steep. Child benefit meant a lot to me for my financal independence from my husband and a recognition for the hard work of bringing up a family. I object to the unfairness of these new child benefit proposals. Two income families can earn £99,999 and receive full payment but a single earning household will lose their child benefit if they hit 60k. As fot the administration of it all..... The tax credits are crazy already. My husband was lucky enough to get a pay rise last year and even though I informed the tax credit office immediatly I ended up having to pay money back as the system is based on last years earnings. Crazy. Child benefit is the only benefit our family receives larger families are not all spongers.