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?

soverylucky - that wasn't aimed at you!

Phew

I dont understand why he cut the upper rate tax rate from 50% to 45% but at least he raised the personal tax allowance to £9205.

is the £50k combined or single salary anyone?

The CB is going to be removed gradually when one person in the household earns more than £50k per annum.

If it is going to affect as few families as he says then surely it is not that much of an expensive measure.
Why do it at all, then? Especially given the increased admin costs. Is it just moving a universal benefit to a means tested one for the principle of the thing?

x-post

The salary threshold at which child benefit stops being paid will be set at £50,000 - rather than about £42,000. The withdrawal will be gradual - 1% of benefit for every £100 earned.

Shit. Oh well.

Frankly this Budget was utterly useless. He could have dramatically simplified taxes and benefits but actually just made it even more complex. Massive missed opportunity.

I am also dubious how the Mansion tax is going to be implemented because frankly I dont see how an overseas domiciled firm that owns a house in the UK can be made to pay UK tax.

So this still means that 2 people earning up to £50,099 each who have a child together will still get Child benefit?

If you earn £50,100 you will lose 1% of your CB.

Doesn't solve the whole two-people-earning-£49k-keep-it-while-one-earning-£55k-lose-it unfairness though does it?

How does cutting CB sit alongside giving a tax break to the video gaming industry and cutting tax on the highest paid people by 5%?

Politically stupid and economically nonsense too.

I understand that pension contributions for mothers are made through child benefit payments. Is this right - does anyone know and if so, how will withdrawal of CB affect that?

Yes, that is exactly what it means and why it is so unfair! I don't in principle object to it being means tested but it should be family income.
Any mention (v sorry if it has been done, I have only skimmed the thread) on what happens if you are "using" child benefit to protect your NI contributions? Once I don't get CB any more, do I also lose my pension?

Oh, cross post :)

So - this CB thing - how are they going to enforce it again? Is it down ro people filling in forms or can they link my a husban's wage to a wife's wage on some super computer system they keep in No. 10?

Dueling yes

So is it still the case that two people each earning 45k so combined 90k will still get it? I am so so angry about this, it is just unfair. And I know lots of people who will be in this situation ie bigger household income + child benefit vs us with lower household income and reduced CB. It's just not right. But then that seems to be the new government motto - it's not right or fair, but we're going to do it anyway. I'm so pissed off.

Hmmm, the CB changes are slightly fairer as in there's now a small taper.

But that's based on the fact that originally the changes were utterly utterly unfair and now it's probably more utterly very unfair.