Tax Credits

Mistermeaner

Agreed but the system makes an allowance for it? The tables had 2 columns, 1 based on 150quid a week childcare 1 on 300quid a week child care.

Seems crazy, even the lower figure.

Does anything stop people registering themselves as child carers and 'looking after' each other's kids at excessive rates?

zagfles

michaels wrote: »

I need to look into this. One problem seems to be that if you qualify for wtc then you don't get free school meals, it is an either or - unless perhaps you can get another 'gateway' benefit - does council tax benefit count? WE would obviously need to make sure we had no savings but these can be parked into the pension and of course non-taxed income (say rent a room, solar PV FIT) etc does not count for benefits calculation purposes.

Definitely needs some serious thought, use savings to pay off mortgage/put into pension - work 3 days a week, 24 hours, salary sacrifice/avc to pension to look after income - 12k tax credits, 2.4k (3 kids) CB, 1.8k Council Tax Benefit and if we could get it 1.2k free school meals. Plus hopefully another few hundred of free school music lessons, free school trips etc. What's not to like?

Council tax won't count, other than CTC you need to be on an income related bottom end benefit (JSA/ESA/IS), see http://www.entitledto.co.uk/help/free-school-meals

I think eligibility to all those stops if you work 16+ hours. In any case you won't find it anywhere near as easy to artifically generate an entitlement to means tested benefits as tax credits. Tax credits are easy, means tested benefits have all sorts of rules such as deprivation of capital, counting loans as income etc.

zagfles

Mistermeaner wrote: »

Agreed but the system makes an allowance for it? The tables had 2 columns, 1 based on 150quid a week childcare 1 on 300quid a week child care.

Seems crazy, even the lower figure.

Does anything stop people registering themselves as child carers and 'looking after' each other's kids at excessive rates?

They'd need to get the necessary qualifications, and there are rules about close relatives and I'm sure there'd be rules about artificial arrangements etc.

But yes the theoretical fact that two SAHP's could register as childminders and swap children, and both be better off financially, shows the system to be a farce.

catwoman73

They'd need to get the necessary qualifications, and there are rules about close relatives and I'm sure there'd be rules about artificial arrangements etc.

You can claim childcare tax credits and use them to pay a relative for childcare as long as that relative is a registered childminder and the care takes place in the childminder's property not the child's. I know someone who does this to care for her own grandchildren.

In Wales and Northern Ireland, the CM must care for at least one non-relative child as well.

michaels

zagfles wrote: »

Council tax won't count, other than CTC you need to be on an income related bottom end benefit (JSA/ESA/IS), see http://www.entitledto.co.uk/help/free-school-meals

I think eligibility to all those stops if you work 16+ hours. In any case you won't find it anywhere near as easy to artifically generate an entitlement to means tested benefits as tax credits. Tax credits are easy, means tested benefits have all sorts of rules such as deprivation of capital, counting loans as income etc.

Shame, but I think you are right, it is either working tax credits or free school meals

CLAPTON

zagfles wrote: »

They'd need to get the necessary qualifications, and there are rules about close relatives and I'm sure there'd be rules about artificial arrangements etc.

But yes the theoretical fact that two SAHP's could register as childminders and swap children, and both be better off financially, shows the system to be a farce.

surely not a farce
after all they are increasing the country's GDP

undetterred

michaels wrote: »

I need to look into this. One problem seems to be that if you qualify for wtc then you don't get free school meals, it is an either or - unless perhaps you can get another 'gateway' benefit - does council tax benefit count? WE would obviously need to make sure we had no savings but these can be parked into the pension and of course non-taxed income (say rent a room, solar PV FIT) etc does not count for benefits calculation purposes.

Definitely needs some serious thought, use savings to pay off mortgage/put into pension - work 3 days a week, 24 hours, salary sacrifice/avc to pension to look after income - 12k tax credits, 2.4k (3 kids) CB, 1.8k Council Tax Benefit and if we could get it 1.2k free school meals. Plus hopefully another few hundred of free school music lessons, free school trips etc. What's not to like?

You epitomize everything that's corrupt with the system.

michaels

undetterred wrote: »

You epitomize everything that's corrupt with the system.

So my thinking about doing it is corrupt, the millions already doing it who are now going to lose some of 'their' money are victims?

chewmylegoff

Mistermeaner wrote: »

Also why on earth w would someone working 16hrs a week need 300quid a WEEK of child care?

Cos it can cost that much.

With 8 month old twins we have been quoted £3,000 a month full time by the only nursery that we can reasonably use and still get to work on time. That works out as £275 a week for 2 days of care. There is no discount for multiple children so if we had 3 children in the same nursery it would be £415 for 2 days a week which is what you would need to cover 16 hours a week.

As it is we will get no CTC, but can buy £140 a month of childcare vouchers which avoids tax of £60 a month. Even factoring that in, if OH goes back to work full time at the end of her maternity leave I calculated it would cost us about £700 a month net after childcare and travel to send her to work! We will probably have to do this to stop her from becoming obsolete and unemployable in her profession.

A nanny is cheaper on the face of it but then you have to pay employers NI, pension contributions etc, and give them 4 weeks' paid holiday a year so you have to use up all your holiday to cover that (and then hope they don't ever get ill as if they do you can't go to work).

Graham_Devon

michaels wrote: »

So my thinking about doing it is corrupt, the millions already doing it who are now going to lose some of 'their' money are victims?

Most who face losing money cannot simply say "oh well, I'll fall back on my 60k+ income then".

Most don't have anywhere else to turn as they are using the system as intended.