Re: Family Tax Credit


Fred wrote:
"Miss L. Toe" <missltoemissltoe@xxxxxxxxxxx> wrote in message
news:44f4d74c$0$97230$892e7fe2@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Taxable child benefit.

How can taxing a benefit replace tax credits ? Are you saying as a tax
allowance - in which case it will not work.


I'm saying that you give a benefit and then you tax it.
So to a non or low rate tax payer it ends up being worth more than to a
high
rate tax payer.


Isn't that called Child Tax Credit. The chancellor gives in one hand and
takes in the other.

The simplest system would be to give everyone a wodge of money, ie the basic
Tax Credit amounts and for the employer to collect the "tax" in PAYE. The
only problem is that people might notice that the effective tax rate will be
70% for low to middle income earners. (Made up of 37% claw back of Tax
Credits, 22% income tax and 11% NI)

No - never involve employers and tax credits. They should stay
separate.

.

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