Financially better off working or not?

Harrys_Mummy

Hi All,

I'm new to the whole forum thing so apologise if I am breaking any cardinal rules but I was hoping there may be someone a lot more knowledgable than me that could share some wisdom.

I had my first baby, a beautiful baby boy, on May 10th 2011. I had only been with my current employer since the end of September so have been claiming the Maternity Allowance in place of SMP. This is due to stop at the beginning of January and basically I am trying to weigh up my options as to whether to return to work or not. I have been in continual full time employment since leaving school at 18 and have never claimed anything from the government before and I'm finding it very confusing. I have tried using the benefits calculator on this site as well as on HMRC website and from what I can see regardless of whether I work or not I can only claim £10.43 per week child tax credit and my child benefit. I can't afford to not go back to work if this is the case however after looking at the price of nursery I'll be paying more each day in child care than I earn. More to the point I don't particularly want to put my baby into full time nursery at six months as I will literally see him for half an hour each day before he goes to bed

I live with my husband who also works full time and we pay a mortgage on our home. I'm no sure what other info might be relevant but I was hoping somebody out there might have been in the same situation and figured out the best course of action or someone might have a better grasp of the benefits system. Any help or information anyone could give me would be really greatly appreciated as I'm getting quite upset as looks like full time nursery is the only option

Thank you for reading my rambling pleading post lol
Katie x

HappyMJ

You and your husband may be able to get childcare vouchers if you are not able to claim the childcare element of child tax credits. Then the child care will be paid for using your before tax salary and you will save at least 32% on the cost of your childcare by not paying tax and national insurance on the value of the voucher.

[Deleted User]

Well basically as a couple it depends on your Husbands income. You should get Child Benefit and Child Tax Credit. Working Tax Credit is only paid if your combined income is less than 18000. You won't get housing benefit as you have a mortgage and I doubt you will get Council Tax benefit (Only saying that cause I don't get it and I work part time). You might get help with your childcare costs up to 80%. You need to post yours and your Husbands Salary to get more precise answers. Do you have any Family that can help with Childcare? Could you consider another job working evenings or weekends?

When I was with my ex he worked Tues-Sat in a Computer store and I worked 4.30pm - 8.30pm in a bank call centre. It was hard but it meant we only needed a child minder 1 hour 4 days a week.

Harrys_Mummy

WOW! You guys are quick lol.

My current gross income is £14,000pa and hubby's is £25,000pa. I have no family that can help as they all work the same hours as us which is most inconsiderate of them lol. Think you might be right Joanne might be worth trying to find a new job with less/different hours so me and hubby can tag team as it were just going to be a bit of a pain in the current job market as not a lot around where we are (same as everywhere I'm sure). I'll look into those childcare vouchers as well HappyMJ as hadn't looked into those thanks. And if all else fails I;ll keep my fingers crossed for my fairy godmother miraculously appearing lol.

Thanks again guys you've made this whole forum thing completely painless x

[Deleted User]

Martin did a useful guide here http://www.moneysavingexpert.com/family/childcare-costs

If you decide to reduce your hours/salary you may be better off on childcare tax credits rather then vouchers.
Also look for ways to reduce your outgoings, My son is now almost 12 and in Senior School so I have just stopped using childcare.... What a relief! x