Work FT/Work PT/Stay at home claim benefits

sufi2

CONFUSED! I have been on maternity leave for a almost a year and now have to make decision to either go back to work or not. I need genuine advise. My salary is £38k and my husband earns £49k. We have 3 children two in school and a baby. Am I better of:
1. Going back to work full time and pay £160/week childcare. I used the calculator and I will not get any tax credits because of my salary?
2. Go back to work part-time like 2.5 days a week which cuts my salary to £19k then claim working tax credit and child tax credit?
3. Stay at home and look after my children and claim I dont know whatever benefits there could be?

If all of the 3 above are not optimum what other options to I have. I prefer your answers to have calculations in them so I can see the numbers and make sense of them!!

Thank you!

paulineb_2

Working tax credit is assessed on joint income as far as I am aware so I dont think you would get anything on a joint salary of almost £70 000. I could be wrong but you could check online.

You couldnt claim JSA or income support as far as Im aware because again, your husband earns too much. You might be able to sign on and get your NI stamp paid, but youd need also to look to see whether you'd get child benefit if you gave up work, I know its stopped if the family earns over a certain amount, but I dont have kids so I dont know what the figures are.

Youd only be entitled to child tax credits (and I believe those are means tested) and child benefit (same).

Im sure someone who does know better than me what you need to earn to get CTC and Child benefit will be along with better advice, but WTC is definitely means tested and if your husband earns 49k I dont think you would get it, regardless of whether your salary would be halved.

Mikazaru

If you went part time you wouldn't get any working tax credits. If you chose to stay at home the only benefit you would be entitled to is child benefit.
Child benefit is the only thing you'll be entitled to in any of the scenarios.

bloolagoon

Have you considered salary sacrifice vouchers?

sufi2

thank you -i will research salary sacrifice vouchers first time to hear about them

bloolagoon

The sacrifice vouchers would allow you to reduce your taxation level by the vouchers so you gain up to 40% of the vouchers worth, then pay your provider using part vouchers and part cash. You can both claim maximum vouchers if your employers use them.

It also helps to keep your husbands salary under £50,000, as this is the taper for child benefit but the vouchers are removed from gross.

This is the only options you have based on combined salaries and childcare costs you state.

It won't be a lot but every penny helps and personally I would go part time benefit from my personal allowance and enjoy being a mother if you can afford it.

My mortgage company allowed me to use interest only payments when I had childcare, I made this up paying when I could and once children were older.