[planemad]

Hi All

Do we have any tax guru's on the forum.
I have a query in respect of paying back some child benefit as I have gone over the earning threshold.

Thanks

[DickieGibbo]

Originally Posted by planemad

Hi All

Do we have any tax guru's on the forum.
I have a query in respect of paying back some child benefit as I have gone over the earning threshold.

Thanks

This tax is an absolute pain. Encourages both parents to work who have young children.

So If one person earns £50k you pay back tax on a percentage scale. Earn over £60k and you don't get any child benefit! Whereas two people working earning £49k each doesn't pay the tax.

Dickie

[robwils]

Originally Posted by planemad

Hi All

Do we have any tax guru's on the forum.
I have a query in respect of paying back some child benefit as I have gone over the earning threshold.

Thanks

If you submit your tax form on line at year end then it will calculate how much for you, you can then pay by card.
Or phone them up, they are open Saturdays too, found them really helpful with the same issue.

As above its a sliding scale, so at 55K would have to pay 1/2 of it back, 60K, all of it.

[JustChris]

I thought it was £55k but yes it's bonkers.

2x£54k total income £108k receive full child benefit
1x£55k total income receive no child benefit


Whattttttttt!!

[Mattyk]

Originally Posted by Chris The Manx

I thought it was £55k but yes it's bonkers.

2x£54k total income £108k receive full child benefit
1x£55k total income receive no child benefit


Whattttttttt!!

I thought it was a sliding scale and that as you earned over a limit it reduced?

Reality is this should be tested against combined incomes after tax and limited to say an income of < 50k after tax combined for one child only.

[Mrklaw]

Originally Posted by Mattyk

I thought it was a sliding scale and that as you earned over a limit it reduced?

Reality is this should be tested against combined incomes after tax and limited to say an income of < 50k after tax combined for one child only.

Yep - and the means to test household combined incomes exists as they use it for working tax credits. I got hit by this even though my wife doesn't work and stays home to look after the kids, and even though our household income would be less than many dual income houses.

[isleaiw]

Originally Posted by Mrklaw

Yep - and the means to test household combined incomes exists as they use it for working tax credits. I got hit by this even though my wife doesn't work and stays home to look after the kids, and even though our household income would be less than many dual income houses.

But then its all a farce - if you work but your wife is unemployed she doesnt qualify for benefits because of your earnings - but you cant have her tax free pay or banding before higher rate tax as she is an independent person....

The tax on incomes needs a complete shake up both in terms of fairness for couples where one doesnt work and also in terms of bands - why only two or three bands when you could have 20 as its all worked out by computers and be much more progressive...

Plus the stupid idea that if you earn over 100k they take your tax free pay off you at the rate of £1 for every £2 extra you earn - which means in addition to 40% tax you already pay you are paying another 40% on 50% - a total tax take of 60% on that slice!!!

Ian

[gembrain]

You could use the HMRC calculator at https://www.gov.uk/child-benefit-tax-calculator

For £25 a year it's worth getting taxcalc individual at www.taxcalc.com. Dead easy to use and even if you don't actually need to submit a return you can check that HMRC got it right. Not that they ever make a mistake of course

[simon the pieman]

Originally Posted by planemad

Hi All

Do we have any tax guru's on the forum.
I have a query in respect of paying back some child benefit as I have gone over the earning threshold.

Thanks

I had to do this a year ago. I had to do tax self assessment form online and they calculated how much I'd need to pay back. Up to £3k can be taken out of your wages in the following years tax code ie earn less before tax. It's bollocks really because if myself on my wife earned £49k each a year we'd be ok. She earns about £12k work at a school and I just crept over £50k and get the pleasure of being arse f@&ked for it. No sense.