Graz

I was wondering if anyone on SNet in the same situation has had the letter from HMRC explaining child benefit?

We are currently receiving child benefit for our little boy but under the proposed changes commencing the 7th January 2013 we should probably be expecting to get either a reduced amount or none dependent on earnings. The wife's income is below the £50k threshold, but I'll be over despite salary sacrifice arrangements for pension, childcare vouchers etc.

I think the idea is that if you carry on claiming child benefit then they'll claw it back from you through taxation. However it was my understanding that HMRC were supposed to be sending out a letter to everyone who may be effected. I've yet to receive one.

I'm thinking that as of the 7th I'll transfer the child benefit into a savings account and not touch it. That way if they ever try to get it back we have the money but if not then well who's to say really

Whole thing is a massive **** up on the government's part really

Ant

If you're earning over £50k and claiming for one child , surely you don't need it?

Jamz3k

Kinda thought the same, especially since he's able to stuff it into a savings account.

Terminator X

iTrader: (7)

You'll get little sympathy on here if you're earning £50k+ ... imho though every parent should get child benefit regardless for "doing their bit" to support the old farts of the future. Those bitchin about it should remember that if people suddenly stopped having children the human race would disappear within 100 years.

TX.

SJ_Skyline

It helps pay for the wife's Gin

^Qwerty^

I've had a letter asking me to go online and fill something out. But the wife won't tell me what she earns, nor if she's in receipt of child benefit, so I don't know what to do?

Tidgy

sorry but sympathy level is zero, i'd love to earn 50k plus, let alone more with the other half earning.

Miniman

iTrader: (2)

Yes I've got one. I believe all high income tax payers should get the letter.

If you decide to keep it you need to register for Self Assessment by 6th Oct 2013. If you decide to stop it there is a website you can go to. So you kinda need to decide by 7th Jan what you want to do (though you have a further delay until 6th Oct if you are going down the self assessment route).

Camsedin

claiming child benefits when your on 50k+ plus and your wife's pulling in a wage..
crazy lol

Ant

All good and well but it's there for people that need it not sure his wage £50k and his wife's and a 535d m sport "really need" it

Graz

You're right I don't need it, but up until the 7th Jan I, or at least I should say my wife who coincidently earns much less than £50k, are entitled to claim it.

I've been paying my tax and NI for the last twenty odd years, no harm in getting a little back. Not like I'm claiming the dole now is it

Anyway if they can't coordinate themselves to send me a letter don't see why I should do anything about it. They can do the chasing

jonc

No one is asking for sympathy.

stevebt

iTrader: (8)

I got a letter ages ago saying if you made over 26k a year your be efits would be stopped. The missus is a little pissed off as she used that money for treats on my daughter.

Graz

Think you are mixing up tax credits with child benefit. Up until the start of next year everyone regardless of earnings has been entitled to child benefit, something like £20/week for the first child and £13/week for second/third/etc.

If either you or your wife earn over £50k then you won't get all of that, earn over £60k and it drops to nothing. Ridiculous though it seems if both you and the wife earn £49,999 a year (i.e. combined income ~£100k) then you can claim the full amount

David Lock

I knew I shouldn't have taken that bloody pay rise

dl

classic Subaru Si

zip106

Wife got her letter a couple of weeks back and has filled out the online form to tell them to shove the benefit back to some pauper that really needs it.

We only used it to put towards the running of the Porsche.
I'm now going to have to do a few more cash in hand jobs to run the bloody thing now!

The Government really don't think these things through, do they?
I mean, another year or so of benefit and I'd almost have enough for a new car.

Ant

alphaj12

Brilliant

J4CKO

iTrader: (1)

We got the letter, I can see why but it still rankles that people with two 50k salaries, using two tax allowances can keep every penny.

My basic is just below the threshold but car allowance, call out, bonus etc push me nearer to 60k, we can do without it but I will have to find £188.40 a month, nobody will starve but it is just another kick in the bollocks for working hard, doing exams and taking risks, now, for every penny between 50 and 60k I will effectively, compared to before be taxed at 73p in the pound.

We have three kids and life is expensive, we would be loaded if we didnt have kids, we had kids and assumed that this benefit, actually a tax break when you are in work was a given but it has been clawed back, it means I cancel my direct debit to the Red Cross and spend less.

We are lucky, though we have lived hand to mouth in the past, we dont have a mortgage, the minute we start making some headway and have some spare cash at the end of the month the devil pisses in my kettle once again, I know there are a lot much worse off so I cant get to aggreived about losing it but want to see saving made elsewhere, big companies not paying tax, foreign aid, immigation and the fact this has been done badly because it is too hard to collect household income, they seem to manage for the tax credits ?

David Lock

I am sure the Red Cross will understand......

dl

J4CKO

iTrader: (1)

Will have to make up the shortfall if I start going overdrawn,, £188 doesnt sound like a big hole but after bills of a grand, Shopping, perhaps £600, clothing, fuel and other car expenses, house repairs, school stuff etc etc it is a big chunk of what would normally be left, the oven conked out the other week so that was £400, then Christmas presents etc so running on empty now, and that is with an extra £188 this month.

AndyBaker

Not saying its right, not saying its wrong but I work as an IFA and there are ways round it.

RobsyUK

iTrader: (2)

Why should someone on more then 50k not get the same benefits as someone on a lot less. Besides they pay ALOT more in?

pimmo2000

iTrader: (6)

Well, yeah it is like claiming the dole ..

As for chasing, I failed that test and ended up with a very heavy bill ..

I'm struggling to live month the month with the cost of child care and I get **** all now .. 50k seems a lot per person, our limit was much lower.

J4CKO

iTrader: (1)

Do tell !

I am going to take a weeks holiday additional so 30 days instead of 20 so will lose a whole weeks worth of wages, but I wont have to pay tax at 40 percent, I wont lose the CB on it, I wont have to pay NI or pension on it either but it wont be like losing 1 52 nd of my salary as it makes no difference to car allowance, bonus, call out or anything else we get, so, the theory is I get a weeks holiday and it costs me about £200.

I do the cycle to work scheme, that is a grand spread over 18 months so thinkign that will reduce my salary as it comes off before tax.

I pay five percent into the pension scheme at work, I can pay seven but my understanding only salary sacrifice schemes work for that.

Other than that, suck it up and get on with it.

andy97

iTrader: (1)

We have cancelled our CB. Checked the account which it has been paying into since having children, well its more than enough to buy our eldest a new car for their 17th.

Graz

No it's not, up until the recent changes child benefit was for all regardless of whether you're earning nothing or millions a year. It's been an Act of Parliament since 1945. The dole (job seekers or whatever) is a means tested benefit, you can't claim it just because you don't work, you have to prove you have no means to support yourself i.e. savings etc. Child benefit is not and never has been until now means tested.

I'm not saying what the Government are doing is necessarily wrong, the country is broke thanks to the last lot of jokers that were in power, so we need to claw the money back somehow. It's the way it's being managed that's a joke. The should just scrap child benefit altogether and roll it into the tax credits thing which is means tested so the poor get the most money for their childcare and the rich get less or none.

I can manage without it, it was a nice little extra thing to have, help soften the blow of £6k+ a year we pay in childcare so the wife can work, but never mind.

I won't end up with a heavy bill as if I continue to get child benefit it will be stashed away until they do chase me for it.

Unfortunately I've also done as much as I can in terms of reducing my declared income to HMRC, I do salary sacrifice for my pension (11%), share scheme (2%), and child care vouchers (£124/mnth) but by the time my car allowance and bonus (hopefully) are added I'd still be over. I don't want to put any more into pensions so if there is any other way I'd be interested in hearing it

Dingdongler

There should be NO child benefit for anybody on any income, period.

J4CKO

iTrader: (1)

Why not ?

Do you say that from the position of being under PAYE and earning less than 30k ?