Kids going back into childcare - do these figures seem right to you?

AimeesMum_2

I am returning to work in several weeks as my maternity pay is about to stop.

I have checked the turn 2 us and the tax credits calculator and it states that on a taxable income of £23,000 that we will recieve over £270 per week tax credits - this seems massively high. Can anyone confirm this is pretty much correct or have I made a mistake somewhere?

karenx

It depends on how much your child care costs are?

AimeesMum_2

£230 per week. I didn't add in my partners IB but after recalculation it still comes out at £243 per week.

karenx

I take it your partner doesnt work? You wont be entitled to any childcare costs then as both parents need to be working at least 16 hours per week to qualify

AimeesMum_2

He is on long term incapacity benefit therefore we do qualify for childcare as he is too unwell to look after the kids.

zagfles

How many kids? How many in childcare? It sounds the right sort of amount, but it'll be less from April as the % childcare costs is being reduced from 80% to 70%.

AimeesMum_2

It's for two kids. It's just an estimation taking into account that my daughter gets 15 hours free a week now but just wanted to know how feasible it was. Zagfles...is there anywhere that shows the changes that are taking place in April or a calculator that takes the changes into effect?

lauzellen

Based on that income that sounds right to me... don't forget it will be 10/11 income used from april. I don't know of a calculator that takes the changes from april into account as of yet. http://www.direct.gov.uk/en/Nl1/Newsroom/Budget/Budget2010/DG_188501 gives details of the changes

zagfles

AimeesMum wrote: »

It's for two kids. It's just an estimation taking into account that my daughter gets 15 hours free a week now but just wanted to know how feasible it was. Zagfles...is there anywhere that shows the changes that are taking place in April or a calculator that takes the changes into effect?

Don't know about a calculator but the rates are here:

http://www.hmrc.gov.uk/rates/taxcredits.htm

Add the elements you're entitled to (inc 70% of childcare) and then take off income reduction (41% of income over 6420).

So as an example, assuming you get the 30h element and your childcare is 230 every week, and income 23,000:

1920+1950+790+230*52*0.7+2555*2+545 = 18687

Reduced by (23000-6420)*0.41 = 6798

Makes 11889, £228.63pw

AimeesMum_2

Wow thanks for the help. I'm amazed by how knowledgeable some people are on this website.

I tried to press the thanks button to you both but it says I don't have that privelige :S

lauzellen

I've used those rates just to calculate how much I would get from April - certainly helps with the budgeting to know what sort of figure to expect!