Advice as partner is being made redundant and we've high childcare costs

lfcjim

My partner has just been told she will not be kept on with her new Employer at the end of a probationary period due to being off ill and not meeting sales targets. This will happen by the end of the month.

Our dilemna is that currently I earn sufficient to just about cover the household bills (mortgage, utilities, kitchen finance, phone etc etc) - roughly £23,500 for 09/10 and will be roughly £30,000 for 10/11.

Her income had paid for childcare for our 21 month old daughter £38.50 x 4 days each week, aswell as our petrol expenses £300, food £200 and things such as birthdays/christmas.

We now need to decide what the best way forward will be - she wants to work but any 'new' job would have to pay relatively decent to cover our costs. So any ideas about her working 16 hours a week to become entitled to Working Tax Credits, and sending our daughter to Nursery only 2 days a week instead?

We just don't know what to do for the best as HMRC cannot advise the best scenario for us, only tell us what we are entitled to 'after' the event - by which stage it could hurt us financially.

I've tried the www . direct . gov website's tax credits calculator and also the HMRC one but they give vastly different estimates.

Could anybody give any advice or suggestions please?

nannytone_2

if youre earning 30k and she wants a 'well paid' 16 hours.....
I doubt very much if you'd be entitled to any help with childcare, possibly not even ctc when the new limit kicks in.

lfcjim

I'm not so worried about her getting a 'well paid' job for 16 hours. I guess what I want is some guidance on whether we would likely be entitled to Working Tax Credits and/or Child Tax Credits if she took a minimum 16 hours per week at say £6 per hour with reduced childcare costs to 2 days a week instead.
As I think the chances of landing a 'well paid' full-time job in this current climate with limited work experience is going to be very difficult I think.

thorsoak

If your wife isn't successful in getting another job immediately, why will you need to pay excessive child-care costs? Until she is working again, would it be so disastrous to take your daughter away from nursery/childminder?

merlin68

You won't get working tax credit on your income.

Indie_Kid

thorsoak wrote: »

If your wife isn't successful in getting another job immediately, why will you need to pay excessive child-care costs? Until she is working again, would it be so disastrous to take your daughter away from nursery/childminder?

If one of a couple (there are exceptions to this) then you're not entitled to child care help via WTC.

From HMRC:

Generally you and your partner must both work 16 hours or more a week to claim help. Only one of you has to work 16 hours or more if one of you is:
ill or disabled and claiming disability benefits
in hospital
in prison - serving a custodial sentence or remanded in custody awaiting trial or sentence

themull1

If you do an SOA we can see if you can cut back on any of the bills.