Benefits help

caz2703

I'm extremely confused which isn't difficult these days.

Long story short, I am now a lone parent with 2 pre-school children. I have been employed continuously for quite a few years but have been on maternity most of the last 2.5 years. I've been playing about on entitledto.com and I'm speechless. I've been trying to work ahead and see what I may get next year of I were to:

• stay in work full-time thus paying out childcare
• reduce my hours in my current job
• take a minimum wage part-time job
• go straight onto income support

The reason I need to work out so many options is the fact that my employer may or may not allow me to reduce my hours and given my sole parent status, I may not be able to fulfill my contractural obligations (business travel and on-call) so could find myself unemployed. I am currently entitled to CTC and I shall be back on WTC in a few weeks as I've just finished OML and I'm now on AML until Xmas.

Now for the reason I'm so confused. I've amended my 'earnings' for this tax year to show what I'd be earning next year and also taking into account childcare. Without getting too detailed, I currently earn £37K and entitledto is suggesting that I'd be entitled to another £20K in benefits (child benefit, a small HB, WTC and CTC). Surely to god that has to be wrong? I know the benefits are changing next year but I thought I'd get an idea of my options. If entitledto is correct then I'd be earning £2K net per month and childcare (£1350/month) would be totally covered by all the benefits. That would mean after rent and bills I'd have £1000 to live on :eek:

Tell me I've done something wrong as that doesn't seem right.

jojo_2012_2

entitled to will be calculating your tax credits entitlement based on last years earnings, which is around £100/week less because you were on maternity leave. You need to tell them what you expect to earn for the year ahead or will end up overpaid.

I highly doubt you're entitled to WTC earning 37k a year.

For example I earn 25k gross, single parent to 1, childcare fees £120/week, rent £179/week. I am entitled to £60/week CTC, £60 a week HB. You'll be entitled to more for the extra kiddy, but less because of your extra earnings.

CTC only ever cover a maximum of 70% of childcare fees and theres no way you'll be entitled to 70% based on your income.

caz2703

jojo_2012 wrote: »

entitled to will be calculating your tax credits entitlement based on last years earnings, which is around £100/week less because you were on maternity leave. You need to tell them what you expect to earn for the year ahead or will end up overpaid.

I highly doubt you're entitled to WTC earning 37k a year.

For example I earn 25k gross, single parent to 1, childcare fees £120/week, rent £179/week. I am entitled to £60/week CTC, £60 a week HB. You'll be entitled to more for the extra kiddy, but less because of your extra earnings.

CTC only ever cover a maximum of 70% of childcare fees and theres no way you'll be entitled to 70% based on your income.

You see, that's exactly what I thought! My salary next year is about £10K different to what it will be this year which is approx £10K different to what it was last year if that makes sense?

2010 P60 - £25K
2011 P60 - £16K approx
2012 P60 - £37K approx

My head is totally messed up now as I was led to believe that with what I earnt, after I paid childcare and rent I would be left with a big fat zero from my salary. My only other income would be child benefit of £130/month plus whatever my ex decides my sons are worth (that sounds in poor taste but we literally broke up because he kept overpaying his first ex for their child to almost double CSA recommended rates yet she was living the high life and we were skint). I've already been told by stbx that he can't afford to pay me the kind of money he'd been paying (and still is afaik) his ex so I can only assume I'll get £350/month which is CSA guidelines.

So that's £500 to pay bills, buy food & clothes and pay for a car to get me to and from work. I did some rough figures a few weeks ago and I'd have more disposable income if I worked 20 hours a week on minimum wage and assumed the cast majority of childcare would be paid for plus HB, WTC and CTC.

My head is pickled. Is there a better way to try and work out what my options are as it seems entitledto isn't up to it?

kingfisherblue

You won't get any WTC as you earn above the cut off point (about £17-18K).

I think there is a calculator on the HMRC website, whcih should be more accurate. Otherwise, the Job Centre might be able to do the calculation for you.

paddedjohn

jojo_2012 wrote: »

entitled to will be calculating your tax credits entitlement based on last years earnings, which is around £100/week less because you were on maternity leave. You need to tell them what you expect to earn for the year ahead or will end up overpaid.

I highly doubt you're entitled to WTC earning 37k a year.

For example I earn 25k gross, single parent to 1, childcare fees £120/week, rent £179/week. I am entitled to £60/week CTC, £60 a week HB. You'll be entitled to more for the extra kiddy, but less because of your extra earnings.

CTC only ever cover a maximum of 70% of childcare fees and theres no way you'll be entitled to 70% based on your income.

WOW, no wonder the country is skint if you can earn £25k and still get part of your rent paid and be paid extra for having a kid.
Not having a go at you just amazed that the system is so generous.

LondonDiva

Are you including child maintainance in your income?

jojo_2012_2

paddedjohn wrote: »

WOW, no wonder the country is skint if you can earn £25k and still get part of your rent paid and be paid extra for having a kid.
Not having a go at you just amazed that the system is so generous.

25k gross. As you can see that money goes to a childminder not to me. It's nice to see the system being "so generous" to hard working people for once.

caz2703

LondonDiva wrote: »

Are you including child maintainance in your income?

Not sure if you're asking me but I'll answer anyway. At present I don't get any maintenance from the ex but it's a long story as he's paying the mortgage while I pay all the bills & provide for the kids all on CTC & CB.

I know it must get some peoples backs up regarding what the PWC earns and what benefits they get. All I can say is that in my circumstances, my salary would only pay for childcare and rent. I'm not looking at the Rolls Royce of nurseries nor am I renting a palatial home, we're talking normal run of the mill options for both. To find that I'd be going out to work literally to pay for childminding and to keep a roof over my head is sickening.

Here's my 2nd choice option: go on IS until I can find a part-time minimum wage job. Work 5 mornings a week (20 hours), get a fair whack of childcare paid for, claim CTC & WTC & HB as well as the normal child benefit then whatever my ex deems appropriate for his kids (min £350/month). On that salary I wouldn't be taxed and I would have more money at the end of the month as opposed to having a career when there'd be more month at the end of the money.

The big problem for working mums is childcare. I'd happily go back and earn the good money I was on but when 2/3 of my money would be going straight to a nursery, can you see how it doesn't seem worth it? I'm not having a go at anyone either, just pointing out how a single working mum can end up so badly off.

chickpea

It might seem to stretch on like an eternity, but the pre-school years do fly by.

Then what? Would you sooner be:

Stuck in a minimum wage job for the rest of your life or;

In a good job on £37k+ with prospects for the future?

You might be 'worse off' until school, but with (at least) £350 CSA, £125 CB and whatever else, I'd say stick with what you've got.

You get 15 hours funding for 3yrs+ children anyway, so at most you have what? 1-2 yrs of full-time nursery care to pay for 2? It looks like you can afford it, you're lucky, so do it.

caz2703

chickpea wrote: »

It might seem to stretch on like an eternity, but the pre-school years do fly by.

Then what? Would you sooner be:

Stuck in a minimum wage job for the rest of your life or;

In a good job on £37k+ with prospects for the future?

You might be 'worse off' until school, but with (at least) £350 CSA, £125 CB and whatever else, I'd say stick with what you've got.

You get 15 hours funding for 3yrs+ children anyway, so at most you have what? 1-2 yrs of full-time nursery care to pay for 2? It looks like you can afford it, you're lucky, so do it.

Slight problem - the 15 hours isn't available in Northern Ireland that I can find as it has been mentioned and dismissed by others before. As for full time nursery, I'd be looking at 3.5 years for my youngest and 2.5 years for my eldest which is quite a bit. The pre-schools I have first hand knowledge of don't operate on a full day basis so you get morning/afternoon 2 or 3 times a week so not a substantial saving against full time childcare.

The other problem is I could find myself being made redundant as I can no longer fulfill my contractural obligations (business travel & on-call). There's no guarantee my employer will be flexible with this but unfortunately I have to make decisions on accomodation etc before I know for sure what I'm entitled to and if I will keep my job and if the ex will pay up each month.

The CB and CSA (or private) maintenance payments are the only monies I'd be getting to pay bills etc. £500/month to pay for car (essential), food, utilities doesn't go that far especially when the nursery fees could go up at any point, the ex could lose his job or go self-employed and on top of that there are the legal fees I'm being strangled by to fight the ex for contact.

If I only had one child to pay childcare for it would be doable on my salary but with 2 children and an ex who is unlikely to help out, I'm stuck as to what to do for the best. I think I'll have to sit down and work out my finances down to last penny as see what I can do.

paddedjohn

jojo_2012 wrote: »

25k gross. As you can see that money goes to a childminder not to me. It's nice to see the system being "so generous" to hard working people for once.

If you add it all up inc your child benefits and maintanence you are probably earning more than a childless couple earn when both are working full time. And to add to this people on tax credits are getting more back than they are paying in.
Again its not the claiments fault its the system which needs changing.