Wife wants to change her hours, how can I work out how much better/worse off??

Gillsfan

Ok, so my current situation is that ive got 3 children, paying approx £150 per week in child care. We earn £31376 per year and receive about £480 every four weeks now theyve finalised my 2005/6 award. Both working 37.5hrs per week.

The missus wants to cut down to 21hrs per week, changing the childcare cost average to about £100 per week. Potentially more depending on the shift system she would get. Our collective salary would reduce to £26076 PA.

Any ideas on how I can calculate if its worth her doing it? Ive tried https://www.entitledto, but im not sure if its calculation our change of circumstances correctly.

Can one of you kind folk point me in the right direction?

CIS

With reagrds to any tax credits you get then the tax credits , it will increase as 37% of any income you drop by.

I work out that you currently get £6240 p.a, as this is more than teh minimum payable amount of £547.50, then for every pound less in income that your wife gets the award should increase by 37p.

With dropping the childcarec costs, then the tax credits payable should drop by ~£2100, but increase by ~£1900 through the income drop, so effectively the amount of tax credits will decrease by £200

Gillsfan

Thanks CIS. very appreciated.