Partner giving up work

jimbobjoylove

Hi all.

My partner is giving up work for at least a year, and will resign from her employment - our childcare costs outweighed her take home pay, and we've decided it's a good time for her to spend more time with the children etc, and have a break from the stress of her job too.

As I'll be the sole earner, and she won't be seeking a job for at least a year or so, are there are benefits tax-wise that either I or her should seek other than child benefit?

This probably comes across as penny-chasing in difficult times, it really isn't, just want to be sure we're predicting our finances correctly and getting everything in order ahead of her no longer working.

Thanks in advance

Darksparkle

Can you give us details of your circumstances?

Your hours? Income? Number of children?

clairec79

You may want to look into tax credits - however as they take into account annual income you may not be entitled to it at least until April

jimbobjoylove

Darksparkle wrote: »

Can you give us details of your circumstances?

Your hours? Income? Number of children?

I work fulltime 40+ hours, £40k, 2 children (aged two and four). I've spoken to a mortgage advisor about locking us into a longer fixed term with our current lender. We're in the midst of repaying a chunk of debt as a monthly outgoing.

Certainly I don't think I'll qualify for tax credits, but mainly wondered if my wife would qualify for anything. Unlikely, but just doing due diligence.

Darksparkle

No you wouldn’t be entitled to any benefits except child benefit. The cut off for tax credits with 2 children is approx £32,000.

There are no benefits specifically for those who choose to be SAHPs.

Is it your partner or your wife? You’ve mentioned both? If married then there’s marriage allowance but might not apply until April depending on income to date.

https://www.gov.uk/marriage-allowance

Ames

jimbobjoylove wrote: »

I work fulltime 40+ hours, £40k, 2 children (aged two and four). I've spoken to a mortgage advisor about locking us into a longer fixed term with our current lender. We're in the midst of repaying a chunk of debt as a monthly outgoing.

Certainly I don't think I'll qualify for tax credits, but mainly wondered if my wife would qualify for anything. Unlikely, but just doing due diligence.

Benefits would be based on household income, your wife wouldn't be assessed seperately.

clairec79

You won't qualify for tax credits on £40,000 with two children (I currently get a small amount with 4 but when that drops down to 3 that will stop)

If your wife isn't looking for work (which it sounds like she isn't) then she's not entitled to JSA etc

bexy_v

Im in similar situation money wise, our Childcare costs are a lot and my salary doesn't really cover them but we need my income as well to support the house etc
My husband earns less than you and I can tell you now wont be entitled to anything as you earn too much and your classed and assessed as a household. Ive requested term time change to my contract at work to try and help with that but it also means a drop in income.


might be worth looking at the other boards for ideas on cutting back and readjusting money that way. Childcare is so pricey. As shes given up work and not intending to work you have to factor in the tax year but you earn too much for tax credits...I think the only thing you can claim is the child benefit but to be correct put your joint income through the checkers on here x