12-12-2015, 03:45 AM | #1 |
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Tax Advice
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 |
12-12-2015, 04:42 AM | #2 | |
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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 |
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12-12-2015, 06:49 AM | #3 | |
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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.
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12-12-2015, 06:59 AM | #4 |
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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!!
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12-12-2015, 07:03 AM | #5 | |
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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.
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12-12-2015, 12:35 PM | #6 |
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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.
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12-14-2015, 12:57 PM | #7 | |
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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 |
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12-15-2015, 05:00 AM | #8 |
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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
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12-15-2015, 05:39 AM | #9 | |
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