Benefits for working parents?

MrsE_2

I had a look at that Entitled to for my pregnant daughter.

I pretended the baby was born already & it said she would get £21.00 child tax credits per week & nothing else.

Her & her partner work & have a mortgage. Neither are on high incomes (about 20k her & 14k + some commission him).

I though she might get childcare costs help or vouchers? As she will be using a nursery when she returns to work, but it didn't mention that at all?

Is that it?

zagfles

MrsE wrote: »

I had a look at that Entitled to for my pregnant daughter.

I pretended the baby was born already & it said she would get £21.00 child tax credits per week & nothing else.

Her & her partner work & have a mortgage. Neither are on high incomes (about 20k her & 14k + some commission him).

I though she might get childcare costs help or vouchers? As she will be using a nursery when she returns to work, but it didn't mention that at all?

Is that it?

Child benefit as well (£20.30 a week). CTC will be less from April as the baby element is going so it'll be £10 a week.

There are 2 ways to get childcare help, tax credits and vouchers. Vouchers are done via the employers and they'll be advertised at work if the employer does them, employers like them because it saves them NI. Basically you get vouchers by sacrificing equivalent salary - so you save tax & NI.

Tax credits childcare help is better for those on lower incomes.

HMRC have a guide & calculator: http://www.hmrc.gov.uk/calcs/ccin.htm

Gandalfthegrey

She'll also get Child Benefit dont forget.
Once the baby starts nursery the amount in tax credits will go up to help pay towards childcare costs.

I take it she will be going on statutory maternity leave? if so, her income will only be £124pw - Stat Mat Pay taking her earnings down considerably. Also for tax credits purposes they disregard the first £100 pw she receives SMP so technically she will only be earning £24 per week for 39 weeks, therefore her earnings will be significantly lower than £20k so they would probably receive a lot more.

MrsE_2

Gandalfthegrey wrote: »

She'll also get Child Benefit dont forget.
Once the baby starts nursery the amount in tax credits will go up to help pay towards childcare costs.

I take it she will be going on statutory maternity leave? if so, her income will only be £124pw - Stat Mat Pay taking her earnings down considerably. Also for tax credits purposes they disregard the first £100 pw she receives SMP so technically she will only be earning £24 per week for 39 weeks, therefore her earnings will be significantly lower than £20k so they would probably receive a lot more.

She works for the NHS so will get ok maternity pay, she won't be able to take extended maternity leave (when your money goes right down) as they have a mortgage to pay.

Gandalfthegrey

but what I mean is, when her pay goes right down, the tax credits will increase, so she may possibly be able to take full leave and pay her mortgage.
For example my partner earns about £12k (min wage) and I (when working) earnt £6800. We received £147 per week in tax credits and £20.30 child benefit.
I dont think once she returns to work they will receive much in benefits. Housing benefit is only awarded if you rent. So 'entitled to' is probably about right.

shellsuit

MrsE wrote: »

I had a look at that Entitled to for my pregnant daughter.

I pretended the baby was born already & it said she would get £21.00 child tax credits per week & nothing else.

Her & her partner work & have a mortgage. Neither are on high incomes (about 20k her & 14k + some commission him).

I though she might get childcare costs help or vouchers? As she will be using a nursery when she returns to work, but it didn't mention that at all?

Is that it?

Did you enter any childcare info on that site? Like how many children need childcare/how much is the childcare etc?

karenx

On 34k a year they are unlikely to get much help with childcare costs via tax credits. They will be better of getting the vouchers

MrsE_2

shellsuit wrote: »

Did you enter any childcare info on that site? Like how many children need childcare/how much is the childcare etc?

It didn't ask

MrsE_2

karenx wrote: »

On 34k a year they are unlikely to get much help with childcare costs via tax credits. They will be better of getting the vouchers

34k is not much with a mortgage in Surrey;)

shellsuit

MrsE wrote: »

It didn't ask

It should have? That's odd!

Try the HMRC calculator then instead : http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

MrsE_2

shellsuit wrote: »

It should have? That's odd!

Try the HMRC calculator then instead : http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

Thanks I will point her to that.

Working for the NHS she would be able to get the childcare vouchers, but she expects to be made redundent & her next employer might not do them.