Working Tax Credit - Will I be better off working with 2 pre-schoolers at home?

carleetee

Hi everyone,

Sorry for all the blurb(!) but I would really appreciate some advice for my situation.

Currently, I am a stay at home mother with a husband who works full time. We have two kids, a 3 year old and a 1 year old. I left my old job after the maternity leave period following my first child, as they would not let me take up my role on a part-time basis, and I didn't want to work full time.

At present, we receive about £40 per month in child tax credit and we are not eligible for working tax credit (as far as I am aware) as I believe my fireman husband earns too much from his job. It's a standard fireman wage. We put our 3 year old in nursery for one half day per week (costing about £120 a month) and we use childcare vouchers from my husband's employer.

I would like to think about returning to work for say 3 days a week as a) I don't want to be out of work for too long (already 3 years!) and b) I would like to see if I can bring some extra money in as we're struggling on one wage.

I have been told by my mum that she knows someone who has returned to work after maternity for 3 days a week (over 16 hours) and is receiving £400 plus in working tax credits towards childcare costs, even though her husband is on a decent wage as an electrician. I didn't think you could get this much money for childcare as I have always thought it wouldn't be financially viable for me to return to work with 2 pre-school children. Also, if I return to work, my husband was going to look after children for 1 day out of 3 on one of his rota days off.

I was going to contact the Benefits Office to ask them how much tax credit I would receive (hypothetically - as I haven't found a job yet) but I thought I would check with the forum first as I'm always worried I'll talk myself in to less money somehow!

I read somewhere that we wouldn't be able to claim childcare vouchers if we took more tax credits as a result of me working which might make it not worthwhile. It's all so confusing!

Thanks in advance for any help anyone can offer.

zagfles

You can try various scenarios here : https://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx
Childcare vouchers vs tax credits info: http://www.hmrc.gov.uk/calcs/ccin.htm

You might find that you get a lot in tax credit the first year you start work, as £10k of the increased income is disregarded, but then it drops in the second year the increased income is taken into account.

carleetee

Thanks for your reply. I will check out the links you have provided.
Cheers.