Changes to child benefit -implementation

[Kangarobber]

Could someone please explain to me how the Govt are implementing the removal of child benefit next year from hoseholds where one or more adults earns in the higher tax bracket? Or if the details have not yet been announced, what theoretical scheme they might use for it please?

I claim child benefit and earn less than my personal allowance each year. I also have that home responsibilities thing (can't remember the details). DH earns in the bracket that will be affected. He thinks they will rely on either me stopping claiming it, or I will be able to go on claiming it, but then he will have to declare on his tax return that I claimed it and it will get clawed back at that point.

Is this possible or even a realistic method for implementing this change? If nott, how will they do it?

Thanks EW. So it's not so much the implementation of it, it;s the fact that it's paid to one person on the basis of how much other people earn.

Stealth it is about implementation, though too. At the moment all existing child benefit claimants are individuals. If you want to switch to a joint application process then this means everyone having the benefit stopped and re-applying. If you want to continue with the one person claiming system, then how do you do that whilst getting the info you need to assess their income jointly with someone else?

If it was a change only for new claimants (which wouldn't be fair at all!), then changing over to a new system might be easier. My question is how will this be implemented for existing claimants, especially in the circumstances I described?

Suggest looking at signing the current Gov e-petition 'fairness in Child benefit'
Can google it and sign on-line. If they get 100,000 signatures it has to be debated. It'll end up costing more I expect!

How are women who lose their child benefit going to keep their pension stamp? It is tied to child benefit for non-working mums, so if their husbands earn over £50k or they lose it altogether, how will they get their pension stamp?

Ophelia, I wrote to my MP a few weeks ago asking about the impact on state pensions.

MP's reply:

"I have spoken to the Parlimentary Child Benefit specialist in the House of Commons Library. He has informed me that he does not think that the changes will affect your claim to national insurance credits. However, as he cannot be entirely sure I have written to HMRC asking for a clarification and to George Osbourne, Chancellor of the Exchequer, expressing your concerns."

Kinda sounds like they've not really worked it all out yet

According to this HMRC link there will be an additional tax charge to balance out the child benefit - so you continue to claim but the higher earner has to pay more tax.

It says that to avoid the tax charge you could elect not to receive the child benefit - but you should continue to claim, in order to maintain your NI record. This is at A8 on the HMRC page.

Am surprised neither MP nor Parliamentary specialist could find this link as it was v easy!

Auntiestablishment, thanks for the link.

I do wonder why the Parlimentary Child Benefit specialist didn't know about that though. Given a job title like that, you'd expect him to be a bit more clued up about it!