Super Tax @ 69%

[Magrew]

I haven't seen this reported in this form anywhere but consider this.

If you are an earner making £49,995 you are on your standard 40% tax for the upper end of your earnings.

Now if you got a pay rise of £500 then the next year you will loose 40% of that to income tax (ie £200), ok fair enough that is how life is I suppose.

But now you will also loose 1/12 of your child benefit allowance, If you have two children that works out at £143 pounds in the year so you will therefore receive £157 of the £500 pay rise that you were awarded.

That is the equivalent of being taxed at 69% (to round it up).

That is absolutely astounding!!!!!!!!!!!

[leclerc]

Re: Super Tax @ 69%

You mean you are better off by £157 than you were before in total. Is the glass half full or half empty?

[Sapphire]

Re: Super Tax @ 69%

I must admit that is astounding and a damn rip off, however (sorry if this upsets people) but if you're earning that amount of money then you shouldn't get child benefit, I still like the old addage, 'if you can't feed them, don't breed them'. In fact I'd go as far to say that child benefit should be scrapped apart from cases of real hardship.

[Magrew]

Re: Super Tax @ 69%

What if you are the single earner in a household with three disabled members and two trying to better themselves through study at Uni. That is an awful stretch to a modest income for a whole family.

Your £50k does not make you feel at all well-off in those circumstances.

The family next door could be earning £98k and still receive child benefit if it has two earners just below the £50k threshold.

[Magrew]

Re: Super Tax @ 69%

You mean you are better off by £157 than you were before in total. Is the glass half full or half empty?

If you were an earner making £150k and you got a £500 pay rise you would take home £275 of it. The glass is most certainly half-full when compared against other scenarios.

[leclerc]

Re: Super Tax @ 69%

Disability Living Allowance(would come on top) with regards to disabilities, furthermore, Carer's Allowance(for the carer of them). I would add adult disability Team or child disability team as useful contacts.

There are benefits which can be claimed which are more and DLA is certainly that.

[Ruby]

Re: Super Tax @ 69%

This situation is a complete shambles! David Cameron has shot himself in both feet. It is OUTRAGEOUS that a couple earning 49K each ie total household income of 98K per year will not be affected however a household that have just one person bringing home just over £50K ie. total household income of 50K will be affected with the child tax credit.

Anyone thinking back to the situation with poll tax and what happened next?

[TUTTSI]

Re: Super Tax @ 69%

Tax regarding child benefit kicks in at £50,100 - so your calculations may be wrong....

[Sapphire]

Re: Super Tax @ 69%

[QUOTE=Magrew;307637]What if you are the single earner in a household with three disabled members and two trying to better themselves through study at Uni. That is an awful stretch to a modest income for a whole family.

Your £50k does not make you feel at all well-off in those circumstances.

As I said above it should be scrapped except for in cases of real hardship, I'm sure the above household would and should qualify.

The family next door could be earning £98k and still receive child benefit if it has two earners just below the £50k threshold.[/QUOTE

That will happen whatever rules there are, there will always be exceptions and arguments for and against, it might not be fair but there has to be a line drawn in the sand.

Child benefit was started to help subsidise the mothers losing a wage and to keep the children in food/clothing and so on, nowadays its seen as a right and majority spend it on wine, cigarettes and holidays, that's a sad fact of life and why it should be stopped.

[Magrew]

Re: Super Tax @ 69%

Tax regarding child benefit kicks in at £50,100 - so your calculations may be wrong....

No I think you will find them correct, you loose the full value at £60k and it is split proportionally in the range from £50k to £60k the first increment coming in at £50,100. Therefore at £50,500 you loose 1/12 of the full benefit.

[Ruby]

Re: Super Tax @ 69%

Sapphire, kids cost a fortune to raise and the child benefit barely scratches the surface. However as the saying goes - any little bit helps.

[Sapphire]

Re: Super Tax @ 69%

Sapphire, kids cost a fortune to raise and the child benefit barely scratches the surface. However as the saying goes - any little bit helps.

I totally agree with you, I am a step mother, grandmother and greatgrandmother and know full well how much they cost, but people should think before having children and the cost implications. I'd love a Ferrari but whilst saving up I realised that I had to settle for a new Ford Focus.

[Magrew]

Re: Super Tax @ 69%

[QUOTE=Sapphire;307646]

What if you are the single earner in a household with three disabled members and two trying to better themselves through study at Uni. That is an awful stretch to a modest income for a whole family.

Your £50k does not make you feel at all well-off in those circumstances.

As I said above it should be scrapped except for in cases of real hardship, I'm sure the above household would and should qualify.

That is the household I am in, we don't qualify, I have taken advice on it today. Because we had to forego one individual who was on carers allowance to take up study, we are currently having to seriously consider downgrading to a smaller house if we can get this one sold for a cheaper mortgage hopefully.

I cannot afford any social life (other than LB's), I don't smoke and I had two opportunities last year for a drink, Christmas and my Dad's funeral. I was better off when I was a student 25 years ago.

Indeed all the changes that have been introduced over the past 4 years has reduced the income into our house by almost £400/month through changes to tax credits, changes in thresholds etc. That is before this new burden.

[MissFM]

Re: Super Tax @ 69%

Well guys - I bet I'm not the only one who would welcome the opportunity to "try" to get by on 50K with or without child benefit - come on ...:der:

[Magrew]

Re: Super Tax @ 69%

'if you can't feed them, don't breed them'.

I didn't breed them, I am a step dad. Their own dad f'd off to Thailand so that he did not have to pay any maintenance for them. haven't seen a penny in maintance from him in all the time I have known the kids.

If it was a business decision I would walk away but that is not how I roll.