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  • FIRST POST
    • Mohammedahmed
    • By Mohammedahmed 20th Mar 17, 3:30 PM
    • 7Posts
    • 0Thanks
    Mohammedahmed
    Child tax credits/isa and adults too
    • #1
    • 20th Mar 17, 3:30 PM
    Child tax credits/isa and adults too 20th Mar 17 at 3:30 PM
    Hi all I'm new to this so I apologise if I get it wrong.

    My wife and I are married and about to have two babies (April). I work full time and earn about £45k gross. My wife worked partime doing 24hrs a week on a full time salary of £45k both of us work in the public sector and have pensions through work. What we would like some help on is ...

    Child care vouchers - should we get tax credits or vouchers through work? For when my wife goes back may 18 to work what are we entitled to and benefit us
    Should we be opening a lifetime isa or savings account which would be best

    And for ourselves - we have our own isa accounts should we be looking at getting either a new one or change ( I have less than 1k my wife has about 12k) and need access. We own our own home and looking to maybe buy a second a few years down the line.

    I know so many questions help on this topic is appreciated
Page 1
    • Darksparkle
    • By Darksparkle 20th Mar 17, 4:00 PM
    • 4,256 Posts
    • 2,704 Thanks
    Darksparkle
    • #2
    • 20th Mar 17, 4:00 PM
    • #2
    • 20th Mar 17, 4:00 PM
    There is a calculator on the gov site that will tell you whether tax credits or vouchers is the best option or whether vouchers or tax free childcare is the best option.

    More info is needed than what you have provided so I couldn't answer that. However based on the info you have provided isn't unlikely you'll be entitled to tax credits due to the household income.

    Interest from ISAs aren't taxable so not included as income for tax credits.

    Interest from regular savings account as taxable and need to be declared as other income if the other income exceeds £300 per annum.
    • Mohammedahmed
    • By Mohammedahmed 21st Mar 17, 9:44 AM
    • 7 Posts
    • 0 Thanks
    Mohammedahmed
    • #3
    • 21st Mar 17, 9:44 AM
    • #3
    • 21st Mar 17, 9:44 AM
    Many thanks for the quick reply

    What other details do you need?

    Just to clarify can I open isa in the babies names or leave it as a savings account???
    • Darksparkle
    • By Darksparkle 21st Mar 17, 10:05 AM
    • 4,256 Posts
    • 2,704 Thanks
    Darksparkle
    • #4
    • 21st Mar 17, 10:05 AM
    • #4
    • 21st Mar 17, 10:05 AM
    Will your wife return to work on 24hrs?

    What is the the total household income? You've only told us what her full time salary would be, not what the part time equivalent is. As we don't know what your employer considers full time I can't calculate it myself.

    What will your childcare costs be.

    Your children can have junior isas. You'll need to really looking into savings yourself as it really depends on how much you want to save, if you want to access the savings, best interests rates etc. It's not really anything to do with benefits other than if you receive any taxable interest.
    • Mohammedahmed
    • By Mohammedahmed 21st Mar 17, 10:22 AM
    • 7 Posts
    • 0 Thanks
    Mohammedahmed
    • #5
    • 21st Mar 17, 10:22 AM
    • #5
    • 21st Mar 17, 10:22 AM
    Right

    My wife will be back to 24hrs she is on maternity pay of 13300
    Total household income will be up to 03/2018 is 66k
    Childcare from returning to work will be about 400 a month but not looked into belief they will be with a childcare professional for 24hrs
    Savings for kids probably £1000 a year for both
    • Darksparkle
    • By Darksparkle 21st Mar 17, 10:24 AM
    • 4,256 Posts
    • 2,704 Thanks
    Darksparkle
    • #6
    • 21st Mar 17, 10:24 AM
    • #6
    • 21st Mar 17, 10:24 AM
    You wouldn't be entitled to tax credits as the household income is too high.

    You'll be entitled to child benefit.

    Use the calculator on the gov site to decide if vouchers or tax free childcare is your best option.

    Looking online at junior isas/savings accounts.
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