Tax Credits = benefit-dependent society?

[Chil1234]

Seems that the scariest thing facing many people on these boards about getting rid of the Labour government would be the prospect of a drop in tax credits and other benefits.

Being cynical, I'm now wondering if Labour didn't deliberately engineer the way tax credits work not solely to help those in genuine need but also so that the maximum number of people receive a portion of their income from the state. If it wasn't in part to create a culture of dependency and entitlement why else set the ceiling for receipt up as high as £50k?

Well you learn something every day.

I am surprised.

A lot more work for the accountants I guess.

you just shunt it over to your SAHwife and use their tax allowance IME.

Mumblechum - that can't be quite right - the tax free allowance is only about £6500 so even if you paid tax an 50% on it that's only £3250. There must be other changes too.

I dunno the details, I only know he mentioned it a few weeks ago that we're down by £7.5k per annum.

(when I was moaning that I wanted the heating on)

No imnottelling - we are not allowed to do that - they stopped you doing it ages ago.

no look is coming in this year

I know people who do it.

You stick them on the books as some kind of admin.

Pay them their tax allowance.

Job done.

expat/FioFio - money you give to the state = tax, money the state gives you = benefits. Tax credits are benefits.

Aw dear not enough cash to put the heating on.

Really?

How do you think people with family incomes of less than £150K or whatever it is earn. Do you really expect people to feel sorry for you?

'money the state gives you = benefits'

So state pension is a benefit, then.

It's a language thing.

Yes state pension is a benefit.

But not in the sense of "I'm on benefits" IYSWIM.

mumblechum if you're DH won't put the heating on, I would suggest it is because he is tightfisted, not because if you put the heating on you will have to go without your supper.

Yes a state pension is benefits. Roads, street lighting, healthcare and policing are also benefits. Pretending that tax credits AREN'T benefits just helps create an unnecessarily complicated system. Benefits are not a bad thing.

ISNT.

Now, SOME people may say that, I couldn't possibly comment....

I am a lone parent and have been for 2.5 years. I work 27 hours a week currently and tax credits incl the cc element make up roughly the same as my wages. DS's nursery however accounts for half of the TC's I get.

I am v v annoyed that posters think that I should HAVE to work FT - pe splitting with XH the plan was for me to stop at home until he was in school - and we'd have been able to do it (just) however we split needs must and all so I CHOSE to work PT.

XH is forces - he was away more times than home and at the time it was right for me to have 1 year on full benefits then back to working PT when able (ie him being 2.5) it was for 16 hours a week - and for this I make no apology, it had been discussed at lenght with family members- and it was/is in the best interests of MY son that this was the case - I also didn't want to have an 'institutionalised' child who was in day care all the time - MY CHOICE is to have my child and raise him myself. my boss asked me to wokr more hours it was considered and I agreed - this is good as it means I now have school hours fully 9-2.30 i'm happy as is he, this will prob be re worked when DS starts school so I do 9.30-3.00 so i'm there for pick up/drop off.

Do I think i'm automatically entitled to the credits cos i'm a lone parent - no, BUT they go a bloody long way into ensuring that I can get back to work & pay my way. the year on full benefits was so demoralising, I was relieved to be able to get to work and know i'd have ds looked after my bills all paid and a bit extra.

I never looked at a full time job because as I say - I choose to care for my child when he's not in school (as will be in sept) just as it is others choices to work FT and use childcare/nannys.

FioFio - Tax relief is reducing the amount of tax people pay - like the tories silly married couple allowance. Tax credits are extra money paid into your account.

"Yes a state pension is benefits. Roads, street lighting, healthcare and policing are also benefits. Pretending that tax credits AREN'T benefits just helps create an unnecessarily complicated system. Benefits are not a bad thing"

I agree, so many people hate the term 'benefits' because of all the benefit scrounger bashing. If you look at literature by the government they use the term benefit for TCs. I know because I have looked it up to defend myself on another thread.

I was acussed of calling anyone on less than 58k (and therefore claiming TCs) a benefit scrounger... because i said that TCs were benefits

FioFio - re:Road Tax - the idea that a particular tax should pay for a particular thing is another silly idea that we need to get rid of. Tax is (should be) tax is tax is tax.

What is freaking me out about a conservative govt is not benefits - it's services. I have a feeling that they will slice into them with gusto. The national debt being the perfect excuse to do as they naturally incline with impunity.

Mumblechum, sorry but someone has got confused in your house. Everyone under 65 gets a £6475 tax-free allowance. Then £6375-37400 gets taxed at 20% (so your DH pays £6185 in tax), and the next £112600 up to £150000 takes a 40% tax rate (so £45040 in tax, taking the total up to £51125) After that, it is 50%.

If your DH earned £150000, he would still have £92,000 after tax & NI.

Unless he is self-employed?

Actually it makes no difference.