MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Plenty of discussion on here about the new rules. However I did not realise until hearing the news today that you need to opt out of CHB if you earn over 60k.
If you don't opt out, you will still receive it, but be taxed an equivalent amount. Fair enough, except that it won't be done through PAYE - you will have to go on self assessment which is a right PITA.
The deadline to opt out? TONIGHT!
Thanks HMRC for notifying me of this - not.
All the info you need plus stop form [url= http://www.hmrc.gov.uk/childbenefitcharge/stopchbpayments.htm ]HERE[/url]
I got a letter about it months ago? Or rather my wife did, as she is the one who actually gets the benefit.
Self-assessment is pretty easy if you use the HMRC website. And if you donate any money at all to charity then you have to do this anyway if you're a higher rate taxpayer and want to claim back the tax.
So perhaps only really a problem for lazy stingy people?
Do you get child benefit if you earn over £60k? Not saying you shouldn't, just amazed they don't means test it out for an income well below 60k.
Do you get child benefit if you earn over £60k?
Sliding scale of 1% per £100 over £50k. You can receive benefit if you earn over £50k depending on how much you put into your pension.
FWIW, not all letters have been sent/received.
We've certainly no had ours.
Bit of a rush to complete the form when it hit the news this week, too.
Worst [b]'I earn over £60k a year'[/b] thread ever
inflation, eh? 🙄
Hasn't this been in the news for months?
The loss of benefit has been well publicised but I've not heard anything about the implications of opting out or not opting out. HMRC have sent us zero information.
But I'm confused...
"[i]If you opt out now and need the money later ... proving your right to a pension may be tricky[/i]"
WTF? There's no explanation in the article as to why opting out might risk loss of state pension.
And this is exactly why it should be retained as a universal benefit. Why have all teh aggro of Self Assessments and collecting issues when it was so simple before?
Sorting out the mess they have made of this will cost more than keeping the system the same until next April would have
Whole thing is a joke
More confused,
http://www.mumsnet.com/jobs/child-benefit-changes
"[i]the £50,000 and £60,000 thresholds relate to your 'adjusted net income', rather than gross salary[/i]" - news to me.
That makes sense. If you are doing a self-assessment it will include ALL income (interest, investments etc)?
Why opt out just do self assessment online.
Stupid bloody system will cost more than just leaving as was
Not received our letter either but I can't understand why anyone is taken by surprise, there's been plenty of media coverage
Do you get child benefit if you earn over £60k? Not saying you shouldn't, just amazed they don't means test it out for an income well below 60k.
Have you been locked in a cellar for the last few years? 😆
Hmmm, on a semi-related note, what is this about needing to do a self assessment if you give to charity and you're a higher rate tax payer?
I tick the gift aid box on the forms, is this the same thing? Or am I missing a trick?
You may earn £60k now, but how do you know you'll definately earn £60k in the 2013/14 tax year - 'cos if you don't there'll be no way of getting it back.
I might be thick, but exactly how do you fill in the form on line?
I go to the link, then which following link do I need?!
Legoman we hadnt missed the change but nearly missed the deadline (thanks OP). I dont watch the regular news much and cherry pick the international, business and politics that's interesting or relevant. Given all the moaning that has gone with the news on this issue I have ignored it in the press in the expectation we would get a letter with some useful info (as some people seem to have had).
B r can opt back in in the future. At least thats my reading of it.
Ewan - charity gets basic rate tax back. You can claim the balance of the 40% from HMRC. You may not need to do a return some offices will or did accept a letter or phone call for this and minor stuff like bank interest adjustments. I am no expert but that was my last telcon with hmrc and no doubt someone will iron out the technical inaccuracies in my response.
I'm not sure about this self assessment thing, I was told after doing my last one that I don't have to do them any more so I reckon I just have to send taxman a letter with any adjustments I need to make such as mileage, don't see why CB can't be done the same way. Not that I minded doing self assessment online - managed to offset an earlier tax loss against a capital gain one year.
Ewan - charity gets basic rate tax back. You can claim the balance of the 40% from HMRC. You may not need to do a return some offices will or did accept a letter or phone call for this and minor stuff like bank interest adjustments. I am no expert but that was my last telcon with hmrc and no doubt someone will iron out the technical inaccuracies in my response.
Thanks! - now that is interesting! Presumably you can back date this to previous years as well.
Out of interest, do you know why this exists? Is it not just giving money back to higher rate tax payers, which is something I have not yet experienced! It would make more sense to give the full 40% to the charity I'd have thought.
rob2 - MemberI might be thick, but exactly how do you fill in the form on line?
I go to the link, then which following link do I need?!
Well done for having the ability to earn £60k whilst avoiding the internet/real world for a couple of years, just what business are you in, banking?
It would make more sense to give the full 40% to the charity I'd have thought.
Well the higher rate tax payer could just donate more knowing they can claim it back - gotta be done this way really.
[i]B r can opt back in in the future. At least thats my reading of it. [/i]
Ok, but I somehow can't imagine they'll backdate you the monies lost...
It would make more sense to give the full 40% to the charity I'd have thought.
Wouldn't that make life insanely complicated for charities? They'd have to find out your final tax rate from your tax form somehow in order to calculate the amount of relief they'd get.
Well the higher rate tax payer could just donate more knowing they can claim it back - gotta be done this way really.
Not sure I follow - Lets say I give a 1000 to charity, which as gift aid is only basic tax back on it, the charity gets 1250. It would seem I can now claim back the 20% of the gross amount the charity gets : 1250*.2 = 250 quid. So now i've donated a grand but it's only really cost me £750?
Wouldn't that make life insanely complicated for charities? They'd have to find out your final tax rate from your tax form somehow in order to calculate the amount of relief they'd get.
In an ideal world I'd assume the charity would submit a list of donors to HMRC, they'd have a nice relational database to work out who is owed what....
However having worked with government computer systems....
you will have to go on self assessment which is a right PITA.
It's really not you know. If all you have is PAYE income and some savings then it takes about 20-30 mins to complete if you do it online. As well as the charities thing there are many other tax reliefs that can be claimed (depending on circumstances) if you are a higher rate tax payer.
Not sure I follow - Lets say I give a 1000 to charity, which as gift aid is only basic tax back on it, the charity gets 1250. It would seem I can now claim back the 20% of the gross amount the charity gets : 1250*.2 = 250 quid. So now i've donated a grand but it's only really cost me £750?
How about if you choose to donate £1200 instead?
Or even 1250.... but then the whole thing starts again as the 250 would be a separate payment that I could claim tax relief on when I donate it again.... that would then give me 62.50 back, which again I could claim tax relief if I donate it... then 15.62.... etc etc!
Would have been so much easier, fairer and cheaper to cease paying it and increase benefits accordingly. Simples.
Would have been so much easier, fairer and cheaper to cease paying it and increase benefits accordingly. Simples.
And then the coalition would find themselves getting howls of anguish from everyone currently not on benefits and earning less than £50k, rather than just those earning more than £50k (modulo dual-income craziness).
Whatever they do is going to be wrong. That's the price you pay for letting the banks mess up the economy.
oldmpastit - true but whilst I can see the voter motive behind a half way house solution but I'd respect a Govt more if it did what needed doing and was up front about it rather than wasting time/money on a part solution in the hope we don't notice!
it's all completely arse about tit if you ask me.
we're going to give you benefits, but you have to prove to us that you don't deserve them via a tax form and then we'll make you pay them back.
you want more tax off me? come and get it sunshine.