This amusing in the Guardian:
Hundreds of thousands of families losing child benefit payments this year need to "get off their backsides" and fill in extra forms to avoid being fined by the taxman, the head of Her Majesty's Revenue and Customs has said.
Lin Homer, chief executive of HMRC, said more than 200,000 families still needed to register for the self-assessment tax forms as part of the government's plans to take away child benefit for higher earners.
This is, of course, about the withdrawal of child benefit from those who have higher rate tax liabilities.
Now let's just imagine how this is going to go down with the average person caught out.
First there's a bill of quite likely well in excess of £1,000.
Then there's a fine for not registering for a tax return.
And significant penalties for filing it late.
Plus interest on late payment.
It could easily top £2,000 in each case.
In 200,000 potentially Tory voting swing households.
It's a ticking tax timebomb waiting to undermine the Tories.
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“This is, of course, about the withdrawal of child benefit from those who have higher rate tax liabilities”
But do you agree with the policy?….Do you really think the State should be paying people on over £50K per annum to have children?
I believe in universal benefits
They’re efficient
A small change to banding could have saved all this hassle
It will have a massive impact on the next election
Watch the pea carefully. All will come clear around 2015. Cameron gone, Boris in, Scots out, Cameron into Lords and multiple bank “jobs”. Con majority 75-90 seats. Electoral boundaries redrawn. Union cash banned. State pension capped with no increase. Concessionary travel passes at 100% ended, and means tested. All NHS trust hospitals put up for sale. A local housing association around here (not small) has just ended the waiting list by writing letter to those signed-up to them saying “find private accommodation, we’ve none”. I suspect it is not the only one.
I can see no reason to think Tories will win
Why?
Love it! This has made my day, thanks Richard.
Prediction, richard. There’ll be an “amnesty” – or something similar – spirited out of mid air a couple of months before the deadline, probably at the point at which Lin Homer admits to the Treasury that despite HMRC’s best effort many thousands of (actual or potentail Tory voters) people have failed to take action.
The answer is, of course, to include the benefit as income and tax it! Just like the state pension.
Carol, thank you for saying this.
ALL benefits should be taxed.
NO benefits should be means tested,
Means testing is a way of ensuring that poorer people get to keep less of every extra pound they earn than richer people. I can never understand why people don’t see this.
When the child benefit first came in it WAS taxed.It was set against one’s tax allowances,as the State Pension is today.Also it was not payable for the first child, only subsequent children.,which was silly, as it’s when you have the first child that a lot of expenditure is incurred! The way this is being taxed now is one big blunder.
I would suspect that the average tory supporter reads the Daily Mail. Who have been running warnings for well over 6 weeks. As a result most would have dealt with their issues as they have seen fit.
That’s why 200,000 haven’t
And what an odd idea that most Tory voters read the Mail
Well it’s the most popular paper here in Toryland-by-the-Sea.
Just from the readership figures
http://www.mediauk.com/newspapers/13698/the-guardian/readership-figures
http://www.mediauk.com/newspapers/13700/daily-mail/readership-figures
I think you have missed a Trick here RM. There are an awful lot of people in my experience in practice who are or could about to be higher rate tax payers who are not declaring investment income because they are not filing Income Tax Returns.
HMRC systems are becoming better at getting investment information from e.g the banks This capture of additional taxpayers is a move I thought you would have approved of, since (like me) you feel if we raised more taxation you need cut services less.
But I do not approve of the way this benefit is taxed
And if HMRC have data on higher rate taxpayers not making declaration they should use it
I had a feeling the cutting of child benefit would came back to bite them in the ass! Seems I was right! 🙂