Help with returning to work after maternity calculations

Carefreebluezola

I'm pregnant and would like to give my work as much notice as possible of my intentions of coming back to work. I know that I can change my mind but my plan is to come back part time on either 3 or 4 days a week and I would like to discuss that with them early on in terms of how my role could be adapted to support this. I enjoy my job and it is close to home (10 mins walk) so I am keen to come back part time.

Can someone help me with what I should be taking into consideration when I am making my calculations on how this would affect my finances? My husband works full time, and as far as I can tell I would obviously need to take childcare costs into account, but am I right in thinking I would be taxed less as a part-time employee and how can I calculate the effect on my salary (and bonus)? I'm guessing that I wouldn't be entitled to any benefits following the new changes although it is hard to find that out as a lot of websites still have the old information up.

Hope someone can help to get me started!

welshmoneylover

Carefreebluezola wrote: »

I'm pregnant and would like to give my work as much notice as possible of my intentions of coming back to work. I know that I can change my mind but my plan is to come back part time on either 3 or 4 days a week and I would like to discuss that with them early on in terms of how my role could be adapted to support this. I enjoy my job and it is close to home (10 mins walk) so I am keen to come back part time.

Can someone help me with what I should be taking into consideration when I am making my calculations on how this would affect my finances? My husband works full time, and as far as I can tell I would obviously need to take childcare costs into account, but am I right in thinking I would be taxed less as a part-time employee and how can I calculate the effect on my salary (and bonus)? I'm guessing that I wouldn't be entitled to any benefits following the new changes although it is hard to find that out as a lot of websites still have the old information up.

Hope someone can help to get me started!

You wont be taxed less on your earnings just because you will be working part time.

zagfles

On the assumption that your salary before the pay cut is less than £42k and after is more than £8k, you're looking at a net pay cut of 69% of whatever your gross pay is cut by (20% tax and 11% NI). From April it'll be 68% as NI is going up. Assuming no pension scheme etc.

For childcare your employer and/or your husband's may have a salary sacrifice scheme where they reduce your pay in return for childcare vouchers - you save tax & NI (and your employer saves NI so most employers like and promote the scheme).

Alternatively you can claim childcare help via tax credits - this is likely to be better if your joint income is lower - HMRC have a calculator:

http://www.hmrc.gov.uk/calcs/ccin.htm

Benefits - you'll get child benefit although if either of you pays higher rate tax this is due to stop in 2013 but you'll get it till then.

You get some tax credits unless your joint income is over £58k (this tax year), or £42k (next tax year)

Various other benefits if your income is low.