Stay at home Mum help?

merlin68

We need to know the exact salary in order to work out any calculation.

zagfles

Pension contributions are fully deductible for tax credits. If it's paid through the employer then it is nearly always already deducted from taxable income (ie what's declared on the P60), so you just declare the P60 income to tax credits.

Is the £1800 per month figure gross or net? If it's gross then taking off the £300 pension you should get about £3000 a year in tax credits. You probably won't get council tax benefit.

Check the turn2us calculator https://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx

themull1

Could you do childminding maybe? something where you work from home.

SuziQ

I used a childminder to go back to work with all my 3 children. Although it reduces your income from the job, you will still be better off than not working at all. Childminders are generally cheaper than nurseries, are much more flexible ( mine would still have them with coughs colds etc, mine also helped with the transition into school and did after school and school holiday care)and in my experience they provide very loving homely care, without the constant change of staff I have observed in a lot of nurseries ( which I visit due to my job.)

Anubis_2

SuziQ wrote: »

I used a childminder to go back to work with all my 3 children. Although it reduces your income from the job, you will still be better off than not working at all. Childminders are generally cheaper than nurseries, are much more flexible ( mine would still have them with coughs colds etc, mine also helped with the transition into school and did after school and school holiday care)and in my experience they provide very loving homely care, without the constant change of staff I have observed in a lot of nurseries ( which I visit due to my job.)

We chose childminders too - much more personal service. Luckily one of my friends was a registered childminder, but unfortunately we had to find another after a while as the distance from her house to work was becoming an issue (we had no car so had to walk very early morning.)

The new childminder though was still great and it was much easier. The *only* disadvantage is if the childminder isn't well enough one day. However most of them have a contingency plan - they may have to have one nowadays, I'm going back a few years.

BaconandEggs

Do calculations for tax credits take into account student loan payments as well as pension contributions? What about other deductions taken before tax like parking?

KittyCat1

We were the same as you.Hubbie earns 26k per year and because of the extra 1k we've lost our tax credits due to the change in threshold from 50k to 25k.His employer pays into his pension as does he.

My question is this - As tax credits dont take into account pension,just what it says on your p60 at the end of the year,if he upped his pension contributions making his final yearly salary become below the 25k,would we then become eligable to claim tax credits again??

zagfles

Pension contributions are definitely deductible for tax credits. Tax credits mostly use the same rules as income tax, ie if you're taxed on it it counts for tax credits, otherwise it doesn't. There are a few exceptions like £100pw of maternity pay is deductible for tax credits but not tax, and strike pay counts for tax credits but isn't taxed.

themull1

themull1 wrote: »

Could you do childminding maybe? something where you work from home.

I meant become a childminder, not use a childminder!

BaconandEggs

zagfles wrote: »

Pension contributions are definitely deductible for tax credits. Tax credits mostly use the same rules as income tax, ie if you're taxed on it it counts for tax credits, otherwise it doesn't. There are a few exceptions like £100pw of maternity pay is deductible for tax credits but not tax, and strike pay counts for tax credits but isn't taxed.

Are there any tax credit calculators that take net pay? The hmrc one takes gross pay.