Working out the best ratio between hours of work and tax credits?

Gazella77

Hi,

Hope someone knows more, can point me in the right direction or give some advice on it.

I'm still on a maternity leave but will have to go back to work soon. Now my boss expects me to come back full time but:
- I can't imagine it
- it seems to be financially unreasonable
Correct me if I'm wrong but it seems to me that if I go back full time I won't qualify for the working tax credits (as I'd be earning more than 15000 but I know I'd still qualify for some child tax credit) but will not see my daugther much and spend all my money on the mortgage and the childcare (or even my salary may not be enough as my mortgage is £720 a month, raising to £740 next year).

Now how do I work out what would work best for me? what is the most sensible arrangement? Who can help calculating e.g. how much I'd be getting if I decided to go back let's say 16, 20, 25, 30 hrs?

I went to jobcentre plus but they only help people on benefits and I'm not the one. Then I called the tax credits people, gave them my earnings and asked to do the calculaion for 20 and 30 hours, I couldn't understand how they calculate things and am really bad at it anyways. Obviously they can't advise so the lady didn't wan to help me, she only said that working 20 hrs a week I'd be getting £8 working tax credit weekly and working 30 hrs I'd be getting none but the child tax credit stays nearly the same (£134 with 20hrs and £137 with 30 hrs).
So what's the point in working more??? Only the fact that I will get more salary but then I have to pay for more childcare as well.

My question also is: does the child tax credit they've calculated for me includes the 80% they'd be giving for the childcare or does it come on top of the quoted money? Cos I've done a rough calculation of half my salary now (which would be 20 hrs) plus what I'd get from the child tax credit and that would be enough to pay the mortgage and live on a tight but doable budget but if I'd have to spend the child tax credit money also on the child care then it wouldn't be enough) I'm so confused!!!

I tried entitled to website but it gave me some crazy calculations far from the reality (e.g. according to the calculation currently when only on SMP and hence much lower annual income I wouldn't be getting any working tax credit while in fact I am! and the amount of the CTC was also smaller)

Is there any other good site or organisation that can help working it out?

Thanks in advance

Oh and I forgot the calculator asked about savings above £6 000 and I've got my two ISAs from previous year 3000 and this year 3600. Do they count? And how would they affect the credits? Maybe I should chuck them into my mortgage instead????

carlamagee

Gazella77 wrote: »

I'm still on a maternity leave but will have to go back to work soon. Now my boss expects me to come back full time but:
- I can't imagine it
- it seems to be financially unreasonable

So what's the point in working more??? Only the fact that I will get more salary but then I have to pay for more childcare as well.

My question also is: does the child tax credit they've calculated for me includes the 80% they'd be giving for the childcare or does it come on top of the quoted money?

Hi,

I dunno if this will help you out exacty or not, but....
I have just finished my maternity leave and (unwillingly - but needfully) went back to work. which brings me to your first question....

I still cant imagine being back to work (and i am) and it would have been financially stupid of me to go back to my previous managerial role.
I have went back as supervisor, which, yes is a drop down the ladder - but what was required to work only 16hours per week.
(Partly cos of the finacial side, and also cos i simply didnt want to leave my daughter!!)

I worked it out (after many different calls with a lot of different questions to tax credit people and also friends etc) that it was more beneficial for me to go back to work for 16 hours and to recieve child tax credit and working tax credits.
Tax credit ppl told me that the amount you recieve for working under 16 hours is not a lot (probably around the 8pound you were talking about), but if you work between 16 and 20 hours you recieve around about 100 (it is more, but i cannot remember for definite how much i get each week)

I do not use my childcare support - but as far as I am aware, you recieve chilcare grant on top of your tax credits that you will already receive.

So, in short, I work 16hours per week - get an alright wage, recieve working and child tax credit, and family helps out with childcare for me.

I hope ive answered most of your question, and good luck working out what is best for you!!!

Carla.

Gazella77

Carla,

Thanks a lot, you did lift my spirits up.

No, I haven't consider going back for less than 16 hrs but probably my salary working 20 hrs is still less than yours on 16hrs and hence I was quoted £8 sth , a small amount of working tax credit but if I go back for 30 hrs then apparently no working tax credit but a slightly higher CTC so it is practically the same no matter if I work 20 or 30 hrs.

I guess I'll follow your path and will keep calling them and asking about other arrangements, 16 hrs? 22? 25? etc and see what happens.

I have no family here and am a single mum so really need to have some kind of childcare.

But to me if I am going to go back and work 10 hrs more for nearly the same money then it simply makes no sense.
Unless my employer says no to the part time job.

It's a great relief to hear that the child care help costs are on top of it. Even if I go back 20 hrs I'll be able to afford my mortgage and all the bills plus food and childcare, it'll be a very tight budget but manageable.

And still I put the case for the CSA so am hoping I'd get some maintenance finally.

carlamagee

thats no problem....i was in your position and i know exacty how you feel. its awful!!

What type of company do you work for?? There is some new act or something that your boss has to try their best to meet your needs. For example, if you should ask for part-time work or flexibe hours, your employer has a legal duty to seriously consider your request and they must have a good business reason for refusing. (You may be able to rely on sex discrimination law if your request is refused and you do not think your employer has a good business reason for the refusal.)

Its unfortunate that you have no family or friends you could rely on -- it is ony due to them that I can actuly work - although i have to work around them. My sister is at college, so can only mind my daughter on one specific day per week and my mum works til 2, so she can take my daughter from around 3 so that i can work 3-9, and that seems to work wel for me at the minute.

where are you based? you may be able to find a childminder on your local gumtree - could get someone that is cheaper than a creche etc!?
Let me know how things go for you.
All the best, Carla.

Gazella77

Carla,

I work at the university so I know they need to seriously consider my requests. There is another person in our team exactly on the same position in terms of duties, salary etc who came back from her maternity just 2 weeks ago.
As far as I know she works full time but comes really late and leaves early (never really does her 9-5 as she should) and one day she works from home so if I push probably the same rules would apply to me.
But do I really want to push? And what for? I'd be only stressed as obviously when I stay at home with my little angel with horns I can't get much done so it'd feel like cheating.

In order to get financial help with the childcare I need to get a registered childminder and I've got a list from the council so am looking for my best options.

I'll keep you posted.
Thanks a lot and all the best for you

Saver_Raver

Hi

I am in the same position. I am due to go back to work feb / march next year. I have found and booked my local nursery and it is £38 per day.

I am trying to work out what is feesible money wise. I would ideally like to work 3 days a week (24 hours weekly with a 2.5 hour daily commute) but trying to work out what working tax and child tax credits I will get is nightmare. My employer might state I am needed at least 4 days a week for the job I do so I might have to look for something else anyway. In which case how would I be better off....2 or 3 working days per week? It's a nightmare trying to work all this stuff out!!!!

Good luck with approaching your employer.....I am dreading asking mine to adjust my hours.

Gazella77

Saver Raver I am dreading it as well.
Called the salaries today asking them to work out my salary till April and they wouldn't as there is a planned increase in December plus even while on a maternity I still go up on my scale apparently so they don't know how to work it out. So how would I know???

Just REMEMBER only £175 a week will be included in the child tax credit for the childcare so let's say if we need to go back full time then my local nursery's rate is too high - £218 a week currently :-(
Good luck to you too