Nursery Fees

Riversong

Because of overpayments tax credits are dropping our payments to £500pm. I make a little over 1k a month hubby brings in less, and nursery fees are 1500 per month. It wont be worthwhile me working.

Do tax credits etc really drive people out of employment this way or can we come to an agreement with them?

pmlindyloo

Riversong wrote: »

Because of overpayments tax credits are dropping our payments to £500pm. I make a little over 1k a month hubby brings in less, and nursery fees are 1500 per month. It wont be worthwhile me working.

Do tax credits etc really drive people out of employment this way or can we come to an agreement with them?

I know you are angry but you have been overpaid tax credits. Have you checked that they are right about the overpayment?
Therefore if they are correct and you have had the money then they have the right to take it back.

An overpayment is usually taken back through continuing tax credits. Have you checked that they have taken back the correct amount each month?

I will try and find a link for you to check.

You might be allowed a repayment plan if you are really struggling but if it is a large amount then it will take a long time to repay it.

You must have 2 little ones in nursery and I admire you for working under these circumstances.

You could check your entitlements if you gave up work by using the benefit calculator on www.turn2us.org.uk

pmlindyloo

Here you are:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/Ifthingsgowrong/Overpayments/DG_073813

dundeediva

As per above poster why were you overpaid? Have you asked?That's a HUGE drop in payments!

Riversong

Thank you all. Im now in full time employment with two babies under 4. Im killing myself at work to scrape a living, i dont want to quit. Nursery is good for their development and i dont want to be a housewife.

I would go part time but my boss wont allow it.

princessdon

It's a personal choice I'm afraid Re working and paying fees.

We never got any CTC at all - and I worked for just over £1 ph for a while.

But once they got older - less nursery fees it got easier and we saw more money.

You can work out payments with them - but it's going to leave you short for a while and only you can decide if working is now "worth it" - I have a feeling it isn't financially - but "worth it" has so many other factors than money - each one individual.

bossymoo

Hi
Do your employers do the voucher/salary sacrifice scheme? If they both do, you can save a fair bit on nursery fees, think the tax and NI equivalent on £55 per week of gross earnings, each.
Might be worth looking into. Of course, this effectively reduces your childcare cost, so your award would be recalculated.
Tax credits is so complicated.

Riversong

I think worth it to me is keeping the boys in nursery to get a good start. not money.

bossymoo

Yes, I have 2 under 4 and it is very expensive, but then they are precious, you can't do childcare on the cheap x

Hope you can work something out. Maybe ask if they can split the overpayment through two years? Or just suck it until the end of the tax year, and have a frugal, tighten the belt, year?

Wait till they're teenagers! (ive been warned!)

SkyeKnight

Riversong wrote: »

Because of overpayments tax credits are dropping our payments to £500pm. I make a little over 1k a month hubby brings in less, and nursery fees are 1500 per month. It wont be worthwhile me working.

It doesn't make sense financially to stop working since you are repaying an overpayment and you will still have to do that even if you are not working. Surely you will have even less money longterm if you don't work since it will take longer to pay back what you owe. You need to work out if you are making a profit when you are getting the correct amount of Tax Credits.