Child benefit to be scrapped for higher taxpayers.

[Uncle Leo]

With two kids it is a lot cheaper to fill a paddling pool with cat litter than to buy nappies.

Noted. Just told Auntie Leo, but she didn't seem so keen. She's moaning about all sorts of things at the moment though so I'm not taking her seriously.

 

[EastStandBlue]

So the type of people who would ever consider taking on a job to help support the family are more likely to benefit from the on job training this route could provide, so is it such a bad thing?

It is when, courtesy of Labour's push towards higher level education, there are next to no positions available in the types of apprenticeships that 16-18 year olds would benefit from. Unfortunately, the days of leaving school at 16 and having a wealth of options are over...

 

[Hotman]

Unfortunately (and I do mean unfortunately, as my Mrs is in this position!) this isn't the case. Dividends are also taxed. Although the tax is lower than pay, your company will also have to pay corporation tax on top (with no tax free allowance), which as sole shareholder, you end up paying. So in fact I believe that you are marginally worse off doing it this way, although I think there's very little in it. The only advantage of doing this is that when you wind the company up, the money you receive (if there's cash at the bank or other assets) is a capital gain, so the first £9K odd is tax free.

Not quite... although there is a 10% tax on dividends for basic rate you don't actually pay this as the payment made is only 90% of the gross dividend... see http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_4016453 for a more complete summary. At higher rate there is a "top up" tax of 25% / 35% to bring the divi into line with your higher rate.

Strictly speaking you will still be a HRT

However, you do save significant NI by being paid as dividends

 

[Tangled up in Blue]

Or possibly German. :unsure:

He's Greek.His wife has German ancestory.

 

[Tangled up in Blue]

Means testing is wrong.(Mainly because so many people who are actually entitled to benefits don't actually claim them).The Tories are doing something that they gave a pre-election pledge they woudn't and which wasn't in thier manifesto.Hence Cameron's apology in your morning paper.
Why didn't the Tories start this round of cuts by targetting Bankers and their bonuses rather than picking a relatively easy target like families?

 

[The Flying Scotsman]

The problem with that is that means testing generally is an arse as all the form filling costs a huge amount in admin. So, the solution is to let HMRC do it all for you. Simples! Whereas, if it was as you suggest, then that huge advantage is binned. That's why it's simply down to higher rate tax payers ('HRT').

But they already do this for child tax credits so why not merge the two benefits.

I understand that cuts have to be made and losing the child benefit is a bit of an arse but one i'm prepared to accept. However if you're going to cut it, at least do it fairly.

Tories = Anti-family

 

[londonblue]

Means testing is wrong.(Mainly because so many people who are actually entitled to benefits don't actually claim them).The Tories are doing something that they gave a pre-election pledge they woudn't and which wasn't in thier manifesto.Hence Cameron's apology in your morning paper.
Why didn't the Tories start this round of cuts by targetting Bankers and their bonuses rather than picking a relatively easy target like families?

Which I took with a huge cellar of salt. He knew he was going to do this (hence him saying that he should have told us before the election) but also knew this would lose him votes, so he chose to keep quiet. Talk about underhand. The guy is a slime of the highest order.

Let's add to that his other amazing lie. Before the election he said there were no plans to raise VAT, and within weeks (days?) that is exactly what was announced in the emergency budget. You simply can't believe a word this guy says.

 

[Tangled up in Blue]

It is when, courtesy of Labour's push towards higher level education, there are next to no positions available in the types of apprenticeships that 16-18 year olds would benefit from. Unfortunately, the days of leaving school at 16 and having a wealth of options are over...

As it happens, I was on teaching practice down in Kent in the mid-70's when ROSLA(Raising of the School Leaving Age to 16)came in.Most of the 16 year olds that I was teaching were looking for fairly menial jobs even then.
In fact, the only case I know of someone who left school at 16 and really made it, was a mate of mine who's recently retired after spending 40 years at Lloyd's in the city.But then Daddy(a retired Naval Officer) pulled a few strings to get him on a bench as a Junior in the first place.To his credit the guy proved his ability and staying power on the job.

 

[Lord Football]

Some interesting points.

1. the amount of uncollected tax due to evasion, avoidance, write offs and off shoring is a staggering £123bn.
2. tax credits are means tested
3. an overhaul of the taxation system is required, but HMRC are facing 25% - 40% cuts when the CSR is announced, so there will be no one to do it

IF HMRC were properly resourced to allow them to collect what is due, then £123bn clears the deficit and no one needs to go without the services, pensions and benefits they currently get. Its not rocket science.

 

[Napster]

Some interesting points.

1. the amount of uncollected tax due to evasion, avoidance, write offs and off shoring is a staggering £123bn.

13 years Labour had to sort it out. Shameful.

 

[Yorkshire Blue]

Some interesting points.

1. the amount of uncollected tax due to evasion, avoidance, write offs and off shoring is a staggering £123bn.
2. tax credits are means tested
3. an overhaul of the taxation system is required, but HMRC are facing 25% - 40% cuts when the CSR is announced, so there will be no one to do it

IF HMRC were properly resourced to allow them to collect what is due, then £123bn clears the deficit and no one needs to go without the services, pensions and benefits they currently get. Its not rocket science.

Tax avoided isn't collectable, so you couldn't collect the full £123bn anyway. You'd also have to deduct however much is due but never going to be paid because the business is failing and is going down the pan.

 

[DTS]

I am a bit torn on this one. One on hand as a Dad of two its a blow but not massive - I do feel that myself and my wife had paid more than enough into the system to expect a little back in return. Whilst CB is not a lot its a nice little top up.

On the flip side I can see that when everyone is in the **** we all have to take a bit of a hit and therefore I can live with it.

I would however like to have seen things such as various unemployments benefits, overseas aid, funding for public sector workers go first. No issues with any OAP benefits as such - most have paid in all there lives and therefore they deserve bus pass etc IMHO.

I would also like to see increased taxs for anyone that voted abour this time round. 13 years of mismanagement and overspending, a benefits state etc and still people vote for them......

 

[Rusty Shackleford]

Socialists are always quick to blame the rich (see Lord Football's point about tax evasion) but who do they think is financing all of their lavish entitlement schemes? We need people to make money (and be motivated to make money) or the whole system collapses. Our economy can't be sustained by having the government guaranteeing everyone an income whether it be in some non-job or through collecting benefits. As far as child benefit is concerned, it's one of the few benefits that I favour, but I would only pay it to non-Muslim families whose progeny is born within wedlock. We need to incentivise behaviours that will reverse the ticking demographic time bomb that will turn the continent of Europe into an extension of the Caliphate within the next half century.

 

[Mad Cyril]

I would however like to have seen things such as various unemployments benefits, overseas aid, funding for public sector workers go first. No issues with any OAP benefits as such - most have paid in all there lives and therefore they deserve bus pass etc IMHO.

I think OAPs benefits should be means tested. They don't all live in one bedroom flats in front of a 1 bar electric fire wondering how they are going to make that harvest festival hamper from the local primary school last until pension day.

 

[EastStandBlue]

I think OAPs benefits should be means tested. They don't all live in one bedroom flats in front of a 1 bar electric fire wondering how they are going to make that harvest festival hamper from the local primary school last until pension day.

There was a case publicised earlier this week of a retired actor who continually donates his utility assistance fund to charity because he feels he doesn't need it. His pension is enough to easily cover himself and, despite numerous requests for them to cancel his benefit and reallocate them to someone more deserving, they've refused.

However, I can also understand the flipside of the argument, the cost of means testing each and every OAP on these shores would be sizeable.

 

[Mad Cyril]

There was a case publicised earlier this week of a retired actor who continually donates his utility assistance fund to charity because he feels he doesn't need it. His pension is enough to easily cover himself and, despite numerous requests for them to cancel his benefit and reallocate them to someone more deserving, they've refused.

However, I can also understand the flipside of the argument, the cost of means testing each and every OAP on these shores would be sizeable.

It's simple - you employ snatch squads to apprehend any pensioner seen walking out of Waitrose or booking a Saga cruise.

 

[DTS]

I think OAPs benefits should be means tested. They don't all live in one bedroom flats in front of a 1 bar electric fire wondering how they are going to make that harvest festival hamper from the local primary school last until pension day.

I agree but I still personally feel if they have paid into the system for 40 years plus or raised kids that have in theory helped the economy then they can have a free ride on a scabby old bus as far as I am concerned.

 

[Berrichonne shrimper]

I think OAPs benefits should be means tested. They don't all live in one bedroom flats in front of a 1 bar electric fire wondering how they are going to make that harvest festival hamper from the local primary school last until pension day.

Harsh but very fair,i have a 65 yr old down the road from me here in centre france with over 500 grand in the bank getting the winter fuel payment,not right or fair.

 

[Napster]

Harsh but very fair,i have a 65 yr old down the road from me here in centre france with over 500 grand in the bank getting the winter fuel payment,not right or fair.

whats his address?

 

[McNasty]

Harsh but very fair,i have a 65 yr old down the road from me here in centre france with over 500 grand in the bank getting the winter fuel payment,not right or fair.

whats his address?

R Martin,
Posh Gaffe
Top of the Hill
Benfleet.

best of luck trying to get money out of him -- better people have tried and failed. (Allegedly)