debating if should go back to work :-(

[nisa79]

hi all,
need a bit of advice, i am playworker by profession and work for my local council. I absolutely love my job and teh kids that i work with. I have just had first child and i n teh process of looking around for hnurseries and child minders and i am not getting much luck :-(
child care is so expensive, its currently coming around £400 for half days and i only earn almost twice that a month! my working tax credit and child benefit comes to £160 a month
If i go back to work half of my salary will go to a nursery or childminder.
is it even worth going back to work? my husband earns around 20k and i hate to admit but i am actually thinking of staying home and claim benefits!
is their any one here who could help me in what i can claim and how much would it come up to?

[nisa79]

i guess the answer to that is it depends how much i can claim (job seekers alowance etc etc)
thats where i need advice and maybe c a few responses from maybe who has been in my position

[expatinscotland]

You won't be able to claim means-tested Job Seekers Allowance for voluntarily quitting your job and with your husband working and earning what he does. Nor are you eligible for income support. He earns too much for you to get working tax credit as well, but you would be eligible for some child tax credit - although not as much as if you were working and paid for childcare from a registered childminder/nursery, etc.

[Fangache]

Nisa79 - You will get Child Tax Credits as well.

[expatinscotland]

Try entering your husband's income into this website for an idea of how much Child Tax Credit you will qualify for.

Your award is based on your entire income as a couple, so even if you are the CTC claimant, they will base your award on the income he earns as well.

tax credits

[nisa79]

the tax credits website came back with an amount of £534 , is that for one month or the whole year?

thanks expatinscotland

[Fangache]

The whole year apparently. But I have NEVER heard of anyone getting the right figure out of that calculator.

If you don't mind me asking.... what would your joint income be before tax? That way some MN'ers might have to same income as you nad be able to give you an idea of the real amount you would receive.

[expatinscotland]

The figure is on an annual basis.

TBH, on £20K, if you're not using outside childcare, that doesn't sound too far off the mark. See the latest thread about tax credits going - the member's income is around £17000/pa and the award is around £1100/pa w/her as a SAHM.

[Fangache]

Nisa - last year my income was low due to Mat leave. Our joint income for the year worked out at £29k. Our approved childcare was £430 per month. Tax credits paid us £198 per month.

[expatinscotland]

You get more if you use a registered childminder/nursery than if you stay home. Dunno why that is, I think it's to encourage people to go out to work.

Here's the other thread.

tax credits thread

[Fangache]

Expat - thats because its called the Childcare Element of Working Tax Credit. So of course you only get help with childcare costs.... if you have childcare costs!!!

[expatinscotland]

It's sort of sad in a way, though. It'd be nice if SAHPs could get the same and then it would be a choice if they went back to work or not. But then again, it makes sense set up as it is. Nurseries and childminders have costs to cover SAHPs don't.

[Fangache]

Expat - I'm a bit confused. If you are staying at home to look after the children you don't need to pay a qualified Nursery Nurse to watch them..... so WHY would you get help paying for it, it you are not in fact paying for it???

Its not like childcare costs cover their food or milk or nappies.... it is purely the use of the facilities that you pay for. You don't have that cost if you stay at home. >confused<

The whole point of the childcare element of tax credits is to give a rebate on your INCOME tax to help pay for registered childcare costs to allow you to return to work.

[expatinscotland]

Exactly, fangache! That's why I wrote that bit about childminders/nurseries having expenses SAHPs don't.

Nisa is looking at being a SAHM, so her CTC award will be lower than someone who needs to use a minder/nursery.

Working Tax Credit is designed to help low-income wage earners break the poverty line threshhold. Child Tax Credit are to help w/the expense of bringing up a young child.

Please, no need to get affronted.

In an ideal world, going out to work would be a choice and not a necessity for some. But such is life.

[Fangache]

Must have misunderstood your posts.

But I think Nisa is debating whether she can afford to work..... so I'm just showing her that with her income and her DH's income... and childcare costs of £400.... she will probably get half of that back in tax credits! Therefore, it probably is worth while going back to work.

[expatinscotland]

Could indeed be the case.

It would be SO nice if people could get a definitive answer before making a decision, though.

Does ANYONE know if this is possible?

It would really help a lot of folks decide one way or another if it's worth it.

[Fangache]

Oh don't even go there! The system is totally fecked up. We get an award one minute then told to pay it back the next!!!!!

[munz]

nisa - this is the exact thing i'm having riight now - althou i'm working out if it's worth my while - ie/ I don't want to put my child in f/t care as it's £500 p/m and I don't even earn twice htat p/m so i'm looking at part time. in order to make it work thou I have to think about weather it's worht my while iycwim - I have to negotiate with my boss money wise - I'm only looking at 20 hours p/w max - across 4 days - 3 at home and 1 in the office. if he agrees my one day in the office would be the day DH is at home so hopefully no childcare costs. but I don't want to do it if it means we'll be worse off than if we just had benifits iycwim - I know thta sounds bad but i'd rather be at home any dya of the week - hopefully by working from home it will be the solution.

we're not lucky enough to be able to suvive on DH's wage alone, and I would need to earn at least £400 p/m for us to be comfortable still. so really I'm after workign out all the options.

my fear with the tax credits is if we get them then they ask for them back - as we would not be able to repay them at all. so basically if I'm not entitled to much (under £20 p/m) I won't worry about claiming if that makes sence?

[foxinsocks]

nisa, 50% of your salary on childcare is not unusual - I know it may sound and feel a lot but it's certainly (well here in the south east anyway) nothing out of the ordinary.

[munz]

(read that back and it makes me sound bad- nothing against working mums/SAHM's it's just i'd rather be a sahm if we could afford it - but I don't have the choice) so looking for nxt best thing - ie sahwm.

[riab]

I know how you feel! I'm having the same debate myself. I've just found out that if i go bak to work I have to accept a paycut. I won't put my 6 month old in nursery as he is prone to stomach bugs due to a dodgy set of tonsils and nursery won't take him when he is ill or for 48 hrs afterwards which means I would have to constantly take time off.
Plus I had a bad experience with a nursery when he was going 2 afternoons a week so I could finish off my degree.
Its not just the half or more of my salary thing, its the worry of juggling two jobs and not doing well at either. I do love my job but I also want to amke sure I have a happy healthy child who i get to see some of the time!
Both me and dh work long hours including late evenings and away from homes - I'm prepared to give some of that up but then I'd end up doing my job and all the childcare before 8am and after 5pm.
Unfortunatly AML isn't an option in my industry, I'm already on my holiday time to give me an extra 2 weeks and go back when he's 6 months not 5 months old.

The bugger is I don't want to be a SAHM, but i don't want to get burned out and have no money to show for it!

[hoolagirl]

nisa 79, go and see a lone parent advisor at your local jobcentre. They were able to tell me down to the penny exactly how much i would get in tax credits etc before i made a decision to go back to work. Im now back and their figures were correct.