Working part time and tax credits

WATTY1978

Hi

I'm wondering how to work out tax credits, in particular i want to be able to figure out what kind of part time hours will work our best for my family.

I am currently on maternity but plan to go back part time and use chld care. I haven't decided whether this will be 2 days, 3 days or 4 days but would like to do as little as possible while my son is still young but still work a bit to keep my job open (and my hand in) but while still maintaining our current lifestyle as much as possible.

I realy dont understand the tax credit system. Can anyone help explain what help i might be entitled to.

Heres a rough break down:
OH earns around £22k
I earn around £27k

If i work 2,3 or 4 days i will have to pay childcare for those days so i need to take this into account at around £40 per day

Any advice welcomed, someone said to me the less days i work the better off i may be, because i will be entited to more help, its all so confusing but its only to get us by until he starts school then i plan to go back full time if poss.

Plans_all_plans

I believe you have to work at least 16 hours a week in order to be eligible for the child care element of tax credit. In terms of child tax credit, you will get the basic amount on those salaries. You won't get working tax credit.

Someone will correct me if I'm wrong though, in the meantime, check on here http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCreditsandChildBenefit/TaxCredits/index.htm