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Link tax codes for couples -- epetition

86 replies

theblancos · 20/09/2014 07:49

I hope you would like to sign this epetition to the goverment. epetitions.direct.gov.uk/petitions/63221

Couples who co-habit are assessed as a couple where benefits are concerned but are treated as an individual with regards to income tax. This is unfair and penalises those who make the efforts and sacrifices to stay together as a family.

Many couples who only have one partner working for whatever reason are financially penalised by the refusal of benefits due to the level of income from one person even though other families are still able to receive benefits when their joint income far exceeds that of the lone worker.

The individual tax allowance allocated to stay at home, unemployed or low earning partners is not used as they do not have sufficient income to put against it.

This petition is to ask that Married and Civil Parnership Couples should be entitled to claim any unused tax allowance from one partner to the other. This would create a fairer system of taxation that recognises the bond within a family in the same manner that the benefit system already uses.

OP posts:
DaisyFlowerChain · 20/09/2014 09:39

I have a bond with my family without the need to hand over my tax allowance to another. The whole point of a tax allowance is to let a person earn so much tax free before deductions set in. If you don't earn, you don't use your allowance but that's a personal choice.

Benefits are completely separate and are based on household income taking into account many factors. We can hardly afford the benefit system we have now without giving more away.

theblancos · 20/09/2014 09:56

Benefits are not separate and are not based on household income as 2 people earning 40k (80k in total) can get benefits, whilst 1 person earning 55k and another 10k are penalised by being together and get no child benefit.

The main earner will be also be penalised to try to provide more income to their family as he will be taxed 40%.

I understand that there are people who want to maintain their affairs separate, but that should be an optional choice.

This way of taxation and benefits is completely unfair.

OP posts:
meditrina · 20/09/2014 09:59

I'm old enough to remember the feminist campaign to have everyone taxed as an individual. I won't be signing.

OneStepCloserToTheEdge · 20/09/2014 10:02

It may be better to use "They will be taxed 40%", for example, rather than he. Rather sexist otherwise. I even the most in my family.

theblancos · 20/09/2014 10:08

This is an example of taxation in Spain as family unit www.kpmg.com/global/en/issuesandinsights/articlespublications/taxation-international-executives/spain/pages/default.aspx

And France (see income tax)
en.wikipedia.org/wiki/Taxation_in_France

And Germany
en.wikipedia.org/wiki/Taxation_in_Germany

could go on...

OP posts:
CalamitouslyWrong · 20/09/2014 10:08

I would imagine this plan could be really awful for women. Suddenly the calculation about whether they can go back to work (and gain some financial independence) would become a question of 'costing' their partners a lot if money as they'd only go back to their own personal allowance. Not all families pool their incomes.

theblancos · 20/09/2014 10:15

Correction, thanks for pointed this out. "The main earner will be also be penalised to try to provide more income to their family and the family as whole will be taxed 40%."

I am not against separate taxation, but if wanted taxation as a unit which is completely different. This is what happens in other countries and it is a fair option.

OP posts:
theblancos · 20/09/2014 10:24

@CalamitouslyWrong That should not be a problem, how can that be?

A family earns 80K, 40 + 40 and then one person has to stop working for a year then the tax allowance for 40k will be for 2 people, so the family will benefit during this hard period.

You can do the maths for other options, but the family income will not be affected if anybody goes back to work, at the contrary improved.

And I have said this should an option as per other countries.

OP posts:
CalamitouslyWrong · 20/09/2014 10:30

You're not thinking like a financially abusive twunt, OP.

meditrina · 20/09/2014 10:32

Transferring unused personal allowance is not the same as linking tax codes.

The former could be quite a good thing, but could be done by nomination, not by the removal of financial independence on marriage.

Eminybob · 20/09/2014 10:34

Shouldn't this apply to cohabiting couples as well, not just married and civil partnerships?

Kimaroo · 20/09/2014 10:41

Absolutely meditrina. You retain full control of your personal allowance and nominate where it should be allocated on a yearly basis. I think it should also apply to anyone living in a family unit, especially older children studying and earning under 10k. As parents, any little crumbs would help us support them!

CalamitouslyWrong · 20/09/2014 10:42

I'm not sure we want a situation where men can feel their entitled to their wife or partner's personal allowance.

VelvetEmbers · 20/09/2014 10:45

We have independent taxation in this country. YABVU.

theblancos · 20/09/2014 10:50

@CalamitouslyWrong Yes we might not know about this, but why penalised the rest of us due to others twunts. Work should be done

@meditrina Probably you are correct and we picked the wrong cause to support. But follows a general principle, which I assume it will be easier to implement by linking tax codes.

@Eminybob Yes of course.

PS: We have not started this petition, but found it addresses our issues. If you believe that agree with the general principle then you can support it. If you find holes in it we can discuss another petition, we are in a democracy :)

OP posts:
theblancos · 20/09/2014 10:55

Kimaroo has a good point on implementation, hopefully this addresses the concerns of CalamitouslyWrong.

OP posts:
WidowWadman · 20/09/2014 10:55

That would be a terrible backwards step.

mymummademelistentoshitmusic · 20/09/2014 10:59

Bollocks. It doesn't penalise anybody. They are in the same tax position as anybody else. This is one of the most ridiculous op's I've seen in a long time.

WidowWadman · 20/09/2014 11:00

I wouldn't quote Germany as a positive example BTW, as the situation leads to women stuck in low paying jobs (400€ jobs) because "it's not worth it" to aim for anything better.

soapboxqueen · 20/09/2014 11:11

Sorry but I entirely agree with the op. Either we are all seen as individuals or we are treated as partners where applicable.

Taxation is not based on household income. A family where both partners work earn more than us but pay less tax. How is that right?

As a sahm mum i earn nothing but I'm not entitled to child benefit because of what my husband earns.

Either we are a partnership and I can transfer any remaining tax allowance or I am single in which case I should be allowed to claim child benefit.

theblancos · 20/09/2014 11:26

@WidowWadman, @mymummademelistentoshitmusic So you consider fair were a family earns 80k a year can get child benefit, whilst a family earning 65k cannot?

If this was implemented my partner could also return to work full time as we will be able to afford the extra childcare, now we don't have that option. So this does not encourage low paid jobs to maintain the benefits, the contrary.

Nevertheless this should be optional like in other countries.

OP posts:
mymummademelistentoshitmusic · 20/09/2014 11:34

Child benefit is a totally different matter to taxation.
They are different matters.
You are not penalised by having separate tax codes.

soapboxqueen · 20/09/2014 11:57

But you are penalised for how much another individual earns.

I don't understand why they didn't add child benefit to the tax credit system which would have made the whole thing fairer.

theblancos · 20/09/2014 12:05

@mymummademelistentoshitmusic in other countries are also linked to taxation, it seems here the only problem is the extra work for DWP.

OP posts:
Chunderella · 20/09/2014 12:27

This reply has been deleted

Message withdrawn at poster's request.