Tax & The Family

Making the Tax System Fairer for Families

[Tax & The Family @TaxAndTheFamily]

Read our recent report to find out more about international comparisons⤵️

https://t.co/mSmvkkAxve

[Tax & The Family @TaxAndTheFamily]

🗣️Why can’t we give families the option of being taxed on a household basis for all income tax purposes?

This is what happens in Germany and the US. It would bring income tax liabilities closer into line with living standards. It would make the tax system fairer.🙏

[Tax & The Family @TaxAndTheFamily]

The best news from the Budget is that the HICBC is to be assessed on household basis by 2026...

See below from the Budget⤵️

[Tax & The Family @TaxAndTheFamily]

Because HMRC does not have income on a household basis, this is a challenging target date but if it does happen this will make the charge fairer. There will be losers as well as winners, as we will discuss.

[Tax & The Family @TaxAndTheFamily]

The best news from the Budget is that the HICBC is to be assessed on household basis by 2026...

See below from the Budget⤵️

[Tax & The Family @TaxAndTheFamily]

Despite cutting taxes, marginal tax rates remain up to 70% high for families‼️

A one-earner family earning £60,000 can be taxed 40% income tax, 2% NIC, 9% student debt repayment, 18.1% child benefit withdrawal payments for up to four children & 55% for loss...📈

[Tax & The Family @TaxAndTheFamily]

🗣️A family with 4 children has a marginal rate of 19.8%, three times that of a family with one child at 6.6%

This is still unfair

We spoke more about marginal tax rates here⤵️

https://t.co/Wrsj2LJeYr

[Tax & The Family @TaxAndTheFamily]

Despite cutting taxes, marginal tax rates remain up to 70% high for families‼️

A one-earner family earning £60,000 can be taxed 40% income tax, 2% NIC, 9% student debt repayment, 18.1% child benefit withdrawal payments for up to four children & 55% for loss...📈

[Tax & The Family @TaxAndTheFamily]

...to £20,000 (from £50,000 - £60,000 to from £60,000 - £80,000)

This has halved the marginal tax rate😄

However, the changes still pay no account for how many children a family has 🙁

[Tax & The Family @TaxAndTheFamily]

🗣️The Chancellor recognised that High Income Child Benefit Charge (HICBC) is unfair because it is charged on an individual basis

The Treasury points out that a dual-income family with £98,000 may not be liable to the HICBC whereas a single parent on £50,000 is.🛑

[Tax & The Family @TaxAndTheFamily]

...if it has increased fully in line with inflation, it should have gone up to £67,000.🙁

Read more about the issues with HICBC here⤵️

https://t.co/2yfOtOigAb

[Tax & The Family @TaxAndTheFamily]

🗣️The Chancellor recognised that High Income Child Benefit Charge (HICBC) is unfair because it is charged on an individual basis

The Treasury points out that a dual-income family with £98,000 may not be liable to the HICBC whereas a single parent on £50,000 is.🛑

[Tax & The Family @TaxAndTheFamily]

Tax & the Family have been saying this for over 10 years and are pleased the Chancellor has finally listened…😄

Further good news is that the income threshold is being raised to £60,000.

Although this is an improvement...👀

https://t.co/PP9M3U0d3E

[Tax & The Family @TaxAndTheFamily]

A family consisting of 2 adults and 2 children with a median income are being taxed as if they are one of the wealthiest households ‼️

Hidden away in Budget Day releases was a Table showing the median...👀

[Tax & The Family @TaxAndTheFamily]

...so many families say they are struggling.

If we want fairer taxation a way has to be found for taking account of income as a whole. Other country's tax systems do⤵️

https://t.co/mSmvkkAxve

[Tax & The Family @TaxAndTheFamily]

A family consisting of 2 adults and 2 children with a median income are being taxed as if they are one of the wealthiest households ‼️

Hidden away in Budget Day releases was a Table showing the median...👀

[Tax & The Family @TaxAndTheFamily]

A single adult with a gross income of £64,700 would be in the ninth decile. A family on £64,700 could be paying the same income tax as a single person in the ninth decile 🤯

The median income family is being taxed as if it is in the top 20%. It is not surprising that...

[Tax & The Family @TaxAndTheFamily]

The Chancellor is cutting the main rate of employee National Insurance (NIC) from 10% to 8% from 6th April✂️

But what will this actually mean for working families❓

Conveniently forgetting the freeze on income tax thresholds, HM Treasury says that the 2% cut announced... (1/4)