Household Income and Childcare.

skegyuk

Hi,

I am 26 and my partner is 27, she is currently thinking about going back to work after to having our first child (2.5YRS).

I have done the HMRC calculator online and it states we are only entitled to 81 a month child benefit. I was wondering if there was any other types of benefits that might not have been included on that calculator that would help us with the eye watering childcare bill of around £1200 a month.

My partner is currently out of work but is looking for a job around the £25k mark and I currently earn £52k

Thanks,
Danny

Indie_Kid

Someone on £52k with one child is only entitled to child benefit.

dippy3103

Does your employer offer childcare vouchers? That's about all I can think of

skegyuk

Indie_Kid wrote: »

Someone on £52k with one child is only entitled to child benefit.

I was always under the impression everyone was entitled?

http://prntscr.com/4lbwbu

I do get childcare vouchers from work so that will help, a friend of mine was talking about 15 hours a week free childcare so was hoping someone on here may know what that scheme is.

Danny

Indie_Kid

The 15 hours free is for 3 and 4 year olds.

Spidernick

If your taxable income is £52K then 20% of the child benefit would be clawed back (as you lose 1% for every £100 over £50K). However, if you have a pension taking your taxable P60 amount down below £50K then there would be no claw back (assuming you had no other income).

You are earning about double the average salary, so there is no way you are going to qualify for anything else at this stage. Unfortunately childcare is stupidly expensive these days.

skegyuk

Hi Spidernick,

Thanks, I was not aware of that extra tax!
http://prntscr.com/4lbznl

Looks like I need to register for self assessment as well.

Yes childcare is a joke! Although I did some research and interestingly I dont think they make massive margins:

National Daycare Standards set down the minimum levels of space and staffing required per child
Profit margins are tight and staffing costs high

Thanks for your help.

Danny

xylophone

http://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

Mrs_Soup

You can both claim childcare vouchers if your employers have a scheme and the 15 hours childcare kicks in at the beginning of the term after the child's 3rd birthday - its for only 38 weeks a year though but it does take a bit off the bill. The combination of both of those should help a bit. Its actually worse when the child goes to school as you then need to find childcare before and after school. Could your partner look into part time work as that can work well for some families?

specialboy

On £77k between you I'm sure you will manage.

Indie_Kid

Can't you find cheaper child care / a child minder?