implications of hubby earning £45k, it it worth me going back to work?

hcb42

threshold for 40% is the £42K figure....so hubby is only paying 40% on the small amount of earnings above that figure - as per post 2 - roughly speaking £500ish a year more than the 20% bracket, for earnings of £2600ish more a year for the 20% threshold...if that makes sense....still a net gain.

i wouldn't fear the 40% bracket in my career - I would celebrate it! especially inLondon as it's practically needed for living costs.

assuming your salary is more than covering your commuting costs, net childcare costs and giving you something in the bank for your efforts (which will get easier over time), then it is worth it if you want to keep doing it...and if you don't - your lifestyle choice and career choice ultimately, but not a tax decision..if you get a job nearer home, the childcare costs will not necessarily change, but the take home pay might - but that's a lifestyle decision.

Cirias

If I were you I'd quit work and look after my two children at home. The childcare costs are ridiculous (as my wife and I found out) and it's essentially the same with you not working, except you get to spend time with your kids and not put them in a nursery.

Darksparkle

eamon wrote: »

Post 2 figures are not correct these are current numbers

Income Tax rates

Tax rate Taxable income above your Personal Allowance Basic rate 20% £0 to £31,785
People with the standard Personal Allowance start paying this rate on income over £10,600
Higher rate 40% £31,786 to £150,000
People with the standard Personal Allowance start paying this rate on income over £42,385
Additional rate 45% Over £150,000
as per this example

Example You have £35,000 of taxable income and you get the standard Personal Allowance of £10,600. You pay basic rate tax at 20% on £24,400 (£35,000 minus £10,600).

To the OP you need to do careful sums in order to uncover your breakeven point. I'm sure there is a tax calculator in this site somewhere and don't forget to factor in your NI contributions.

They are correct, however they take into account the personal allowance. Your figures are after the personal allowance so essential say they exact same thing.

As your own post says, people with the standard Personal Allowance start paying this rate on income over £42,385.

I have shows that from £42,386 to £45,000 (which is his salary) he'd pay 40%

mojoflo02

Just remember that childcare costs won't be forever. We took a financial hit to allow me to continue to work on a P/T basis. Although I missed the children I knew that their nursery was giving them opportunities that I could never have given them myself and they absolutely thrived at nursery. I enjoyed being a 'worker' for a few days a week and it allowed me to enjoy my time with the children even more when I was with them.

It sounds like you're earning a good wage for your hours and it sounds like you'd not get a better employer for what you've said.

If I were you I'd keep the job knowing that your child is learning things that you could never teach them at home, and enjoy your freedom at work for a bit. Once the childcare is paid for as the children get older I think you'll be pleased with your decision.

Kayalana99

Honestly I don't see the point in working for nothing, I appreciate you were worried to post as people tend to jump on this subject but this isn't you quitting your job to live on benefits this is you having a husband who can support you whilst raising the children. You can always go back to work in a few years when the kids are older.

I had mine close together and I am now running two businesses around them from home - I'm really not cut out for staying at home with the children I'll even admit that (hence why I keep busy!) but why work for no reason whatsoever then to "give your brain a work out" you go to work to get paid. If you are not seeing a financial benefit then why would you go to work? It's madness - unless your career break would be the end of your career of course which it won't be it's retail - and anyone would understand a mother taking a few years off whilst the children were young when you start applying for jobs again.

Enjoy them while you can they grow up to quick - and if your work savvy I'm sure you can find a way to keep yourself occupied at home like I have done.

MoneyMission2015

Savvy_Sue wrote: »

I have never really understood this way of looking at things, ie that childcare costs are compared to the lower earner's salary / the part-timer's salary, rather than looked as an expense of BOTH earners.

!

You're right, it is an expense for both parents, but in the OP's case the net effect on the household income if she were to return to work and pay for childcare is basically zero because childcare costs are the same as her salary. So financially there doesn't seem to be any difference either way. If the OP chooses to stay at home, the household will be in more or less the same financial position as if they went to work and paid for nursery.

However, as pointed out it is a short term issue, because once full time school starts childcare fees reduce while salary remains the same or increases.

Of course as you said, it isn't just about money but the OP's question was a financial one.