Workers with children who earn just under £50,000, the threshold at which the benefit starts being taken away, would be better off turning down extra work because much of it would simply be clawed back by the Government.
This means that overtime would be a “waste of time”, according to Steve Wade, a director in the tax and pensions division of accountants KPMG.
From January, any household where one person earns more than £60,000 will lose its entitlement to full child benefit. Households where one person earns between £50,000 and £60,000 will lose some of the benefit, depending on how much they earn.
While what he says is true I’m not all that sure how important it is.
How many people on c. £50k a year get paid hourly and thus qualify for possible overtime payments?
I’d have thought that pretty much everyone at that level was on a salary and thus not really affected.
Anyone know the numbers?