HMRC - Child tax benefit charge

Rueben Agboula said:
As an aside it’s an absolutely ridiculous tax. A couple could earn 60k and not be entitled to any child benefit if only one of them earns the 60k but on the other hand a couple could earn, say 90k, each of them 45k each, and be entitled to the full child benefit
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Agree with this. Probably the most arbitrary tax around.
 


Rueben Agboula said:
As an aside it’s an absolutely ridiculous tax. A couple could earn 60k and not be entitled to any child benefit if only one of them earns the 60k but on the other hand a couple could earn, say 90k, each of them 45k each, and be entitled to the full child benefit
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Never understood that rule either. It should be based on household income not personal income.
 
AndrewP said:
That's true. That's also true for the wealthy 40 percenters though.
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Exactly

I wouldn’t say that being a 40 preventer makes you wealthy like.

Ginger John said:
Never understood that rule either. It should be based on household income not personal income.
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I think the tories deserved some credit from the left on that rule. I think it will benefit working families with relatively regular incomes (say 30-40k each) but penalises high single income families (director 6 fig types with stay at home partner). The latter are more likely to vote for them.
 
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AndrewP said:
Wealthy enough but to waste tax payer funded benefits on imo.
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You aren’t far into the 40% band before they start taking it off you though. I don’t know why they can’t similarly stop things like winter fuel and tv licences for pensioners on high incomes, they pay tax just like we do so Hmrc know the score. Likewise people in good jobs receiving motability. Benefits should be for people who really need the money. Spend what’s saved on the nhs, schools, roads etc
 
Stupid tax - should be on household income - and can be easily manipulated by those with own companies or self employed.

Same with tax credits easy to manipulate.

Should stop both of these benefits use the money saved to reduce the rate of income tax. Simplify the system.
 
HANDSOME_DAN said:
You aren’t far into the 40% band before they start taking it off you though. I don’t know why they can’t similarly stop things like winter fuel and tv licences for pensioners on high incomes, they pay tax just like we do so Hmrc know the score. Likewise people in good jobs receiving motability. Benefits should be for people who really need the money. Spend what’s saved on the nhs, schools, roads etc
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I agree that benefits should only exist for those in need.
 
dalsafc said:
Stupid tax - should be on household income - and can be easily manipulated by those with own companies or self employed.

Same with tax credits easy to manipulate.

Should stop both of these benefits use the money saved to reduce the rate of income tax. Simplify the system.
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I understood it would be very expensive to properly means test it. In fairness to very low income people, they hardly pay any tax anyway so they may not feel the benefit of a tax cut but would feel the sting of a benefit being stopped.
 

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