Child Benefit cap right or wrong?

[Beebo]

Our child benefit payments are paid direct to my wife, who has a taxable income of £0 pa.

How will the government know what her partner, i.e. me, earns. I dont think they will be able to cross check this type of information very easily.

 

[User482]

User482, what would you consider a fair tax scheme? or does that deserve another listing.

I think that's a separate discussion, but at the very least, I would expect to see that total tax is progressive - i.e. percentage paid increases with income. At the moment it's regressive - a point many people miss because they only think about income tax.

 

[oldfatfool]

This thread is about fairness. If it's not worth worrying about, why are you contributing to it?

This thread is about child benefit, (which is what I originally commented on), your the one that is rabbiting on about taxes in general being unfair.

 

[screenman]

Would that encourage self improvement though?

 

[summerdays]

Our child benefit payments are paid direct to my wife, who has a taxable income of £0 pa.

How will the government know what her partner, i.e. me, earns. I dont think they will be able to cross check this type of information very easily.

Hmm you have me stumped as I imagine our CB is paid to me.

 

[oldfatfool]

I think that's a separate discussion, but at the very least, I would expect to see that total tax is progressive - i.e. percentage paid increases with income. At the moment it's regressive - a point many people miss because they only think about income tax.

So basically regardless of what you earn, you would like everyone to end up with the same amount of £.S.d. in their pocket at the start of the month.

 

[ushills]

I think that's a separate discussion, but at the very least, I would expect to see that total tax is progressive - i.e. percentage paid increases with income. At the moment it's regressive - a point many people miss because they only think about income tax.

If you ask me tax should be a fixed sum that everyone has to pay, why should I, who paid to go to University and paid a landlord to accomodate me and did without an income for the four years pay more tax than someone who didn't. We both cost the government the same to support (me perhaps less) and I do not make greater demands on the state yet I'm subsidising those who either weren't as clever or couldn't be arsed to advance their personal circumstances.

When I look at the amount of tax I pay each month I find it staggering to see what I get in return and now I'm been asked to forego CB as well. When will it stop when, when my income has been shared around equally?

 

[Beebo]

If you ask me tax should be a fixed sum that everyone has to pay,

They tried that with the poll tax, it didnt work very well did it.

 

[ushills]

They tried that with the poll tax, it didn't work very well did it.

That's true, probably more to do with the educated classes being more likely to moan over a dinner table about tax than go out and cause a ruckus in the streets.

 

[MontyVeda]

They tried that with the poll tax, it didnt work very well did it.

Poll tax was hardly a replacement for income tax though was it?

 

[Beebo]

Poll tax was hardly a replacement for income tax though was it?

it was a fixed tax that everyone had to pay, no matter how much they earned so it fits perfectly with the quoted example.

 

[MontyVeda]

However the fact it was so unpopular was because it was a huge additional tax on top of what we already pay, not an alternative way of paying tax our tax.

 

[Flying Dodo]

Personally, I don't have a problem with the child benefit being restricted to those below a certain salary. These sorts of benefits should be there to help those less well off.

However, from a technical point of view, it is a complete load of bollox that the Government are making out that there are problems dealing with how to get around the issue of 1 partner on £45,000 not getting child benefit, yet a couple on on £40,000 each would still get it.

It can very simply be dealt with, as they already have the mechanism in place and it's very odd they're making out there's this cliff edge.

For the purposes of the completely different Child Tax credit, HMRC write out each year and ask for confirmation of the household income from both partners. In the current tax year if the combined income exceeds £40,000, then there's nothing paid. If it's below £40,000 then there's £545 plus amounts if an approved child carer is used, whilst if the combined income is below £20,000, then they get higher amounts, plus further payments for extra children.

So they could use exactly the same data to restrict the payment of Child Benefit.

Bearing in mind HMRC also have PAYE and Self Assessment income details for everyone working, and for those registered, they know who's not working, so they've got the information readily available in 2 different systems already.

A cynic might say they've announced it to try and make out they're doing something, but then they can say sorry, we'd like to stop it for the well off, but it's not possible. Crap.

 

[marinyork]

For the purposes of the completely different Child Tax credit, HMRC write out each year and ask for confirmation of the household income from both partners. In the current tax year if the combined income exceeds £40,000, then there's nothing paid. If it's below £40,000 then there's £545 plus amounts if an approved child carer is used, whilst if the combined income is below £20,000, then they get higher amounts, plus further payments for extra children.

So they could use exactly the same data to restrict the payment of Child Benefit.

I would be extremely concerned about (some of) those that do not claim tax credits. I've encountered some fairly horrific cases of people not claiming it. Things are a bit better these days, but I still see it as a problem.

 

[Flying Dodo]

I would be extremely concerned about (some of) those that do not claim tax credits. I've encountered some fairly horrific cases of people not claiming it. Things are a bit better these days, but I still see it as a problem.

Yes, you're right - there's around 1/3 of pensioners who don't claim what they're entitled to. However, that's why I mentioned the PAYE/Self assessment system, as they know from that, who's earning what.