Tax Credits Help Please

Pedent

I'm more sympathetic to the idea that working evenings isn't consistent with your parenting responsibilities than other people who've responded have been. However, because you're hoping to have another child soon, I think you'd be crazy to give up your job now.

If you keep your job and become pregnant, then you'll be entitled to 39 weeks' maternity leave on 90% of your current pay, worth a total of £4387. While you're on paid maternity leave, you'll be able to deduct £100/week from your declared income for tax credits purposes, which could be worth another £1599 in tax credits (probably spread over 2-3 years). If you gave up your job, then you wouldn't get that, making it much more difficult to manage with a small child. You get the right to maternity pay from being in work for a particular period while pregnant, so if you decided not to go back to work after your maternity leave, then you'd still be entitled to your maternity pay.

MHartley

tashjam wrote: »

... I understand what you say fbaby about it being taxpayers money but in effect would I not just be getting back what ive paid into it for the last 17 yrs ive been working and the 19 yrs my husband has worked and still does work 39 hrs a wk plus overtime. ...

It's not a savings account you've been paying into.

Stroller133

FBaby wrote: »

You're getting all confused. Your initial post was asking whether you could get more tax credits (which ARE benefits) if you quit your job, not asking about advice about increasing your chances to get a job during day times.

There is nothing wrong with wanting to spend more time with your son butit isn't right to expect tax payers to support you because you are chosing to give up a job because you suddenly want to spend more time with your son. I too want to spend more time with my children, but I accept that it's either that, or having to do with a lot less money, not having both my cake and eat it, so I make the best of the time we do have together and the money I get to make that time fun.

Are tax credits actually defined as benefits - why are they administered by HMRC then, do they usually administer benefits. I thought tax credits were tax credits! Under the current system there is nothing wrong with giving up the job and claiming more CTC as this is what the system allows. As far as I am aware making yourself worse off is not taken into account for tax credits - the award is made solely on your taxable earnings, number of children and childcare costs.

princessdon

Under UC you both need to work full time for tax credits

princessdon

Stroller133 wrote: »

Are tax credits actually defined as benefits - why are they administered by HMRC then, do they usually administer benefits. I thought tax credits were tax credits! Under the current system there is nothing wrong with giving up the job and claiming more CTC as this is what the system allows. As far as I am aware making yourself worse off is not taken into account for tax credits - the award is made solely on your taxable earnings, number of children and childcare costs.

Uc is addressing this. If they are not benefits why can't I and others claim, same as child benefit is now a benefit.

zagfles

dundeediva wrote: »

If your income for 13-14 will be 6.5k lower, ctc will base payments on income 4k lower (they disregard the first 2.5k drop in income). So if your oh stays in his current job at the same rate your ctc will be based on income of about 15.5k so you won't see a massive difference to your payments.

Yes, about £30pw more tax credits.

zagfles

Stroller133 wrote: »

Are tax credits actually defined as benefits - why are they administered by HMRC then, do they usually administer benefits. I thought tax credits were tax credits! Under the current system there is nothing wrong with giving up the job and claiming more CTC as this is what the system allows. As far as I am aware making yourself worse off is not taken into account for tax credits - the award is made solely on your taxable earnings, number of children and childcare costs.

Quite right. Tax credits act like benefits in many ways, but aren't benefits. The name of this board gives a clue

zagfles

princessdon wrote: »

Uc is addressing this. If they are not benefits why can't I and others claim, same as child benefit is now a benefit.

People on high incomes don't get the personal tax allowance, does that mean the personal allowance is now a "benefit"?

zagfles

princessdon wrote: »

Under UC you both need to work full time for tax credits

Not this again. Couples don't both need to work full time for UC, we've discussed this so many times here, I CBA explaining again. OP - see the archives, do a search for "UC conditionality" (just search this board otherwise you'll get the DT drivel).

tashjam

Pedent wrote: »

I'm more sympathetic to the idea that working evenings isn't consistent with your parenting responsibilities than other people who've responded have been. However, because you're hoping to have another child soon, I think you'd be crazy to give up your job now.

If you keep your job and become pregnant, then you'll be entitled to 39 weeks' maternity leave on 90% of your current pay, worth a total of £4387. While you're on paid maternity leave, you'll be able to deduct £100/week from your declared income for tax credits purposes, which could be worth another £1599 in tax credits (probably spread over 2-3 years). If you gave up your job, then you wouldn't get that, making it much more difficult to manage with a small child. You get the right to maternity pay from being in work for a particular period while pregnant, so if you decided not to go back to work after your maternity leave, then you'd still be entitled to your maternity pay.

Thank you, I never really looked at it from that point of view which does sound the better option if I was to give up work and thank you for being one of the ones that understands I want to see more of my family and not just half an hour a night.