The row over Child Benefits seems to go on and on.
the new governent had to make savings and they confirmed earlier this year that child benefit would be removed for high earners
Legislation will be introduced to restrict child benefit for people earning over 42000 The Treasury said that non-disclosure would be breaking the law and result in "penalties".
There are concerns that the proposed system will be difficult to administer.
Labour are claiming that the change hits middle income families unfairly and that the scheme will be unenforceable. Labour go on about the issue and the unfairness, but they got us into this mess to start with.
Claimant will need to advise the inland revenue if there partners are higher rate taxpayers People can get confused about tax and some will unintentionally not advise HMRC..Greater rate tax payers could consider tax planning to reduce the loss of child benefit.
A Treasury spokesman confirmed the change would be introduced in 2013 without any problems.
HMRC have confirmed penalties will be used if people do not disclose relevant tax information.
However its not only labour that have expressed concern.. Ian Liddell-Grainger, chairman of the all-party parliamentary group on taxation, said the move will be practically unenforceable. "One in the large difficulties the us government offers is the program they've just isn't a real-time system and so this will probably be virtually unenforceable," he told BBC Radio 4's Today programme. He is worried about the ability the of revenue and its systems.
The Government beleives the system will work and they do not forsee problems
In reality the UK needs to reduce the amount it owes. Tightening the "purse strings" needs to be done . Yes families will be worse off, myself included but it is necessary.
Everyone understands the process will be painfull but necessary.We now have to bite the bullets and accept it. Low growth,limited pay increases, tax rises and budget cuts are inevitable..Make the most of the tax planning breaks available.
