aibU...probably?

(83 Posts)
IknowImAnArse Fri 07-Feb-14 21:50:11

I am coming to the end of my maternity period with my second baby.

When working, I am a higher rate tax payer in greater london.

I can just about return to work when factoring in childcare costs, so basically I would earn £63 per month - full time. Husbands salary pays bills excluding food..just due to huge mortgage and a couple of hundred quid of existing debts.

It's all very jolly to say ah you are a partnership childcare costs should be split, however the opportunity cost of returning to work makes it pointless.

If I go back to work, I will be paying £22000 taxation for someone else to gain tax credits and
I presume have a greater level of disposable cash than me.

That really is an aside...

My real question is, am I being unreasonably to ask, does anyone else work for nothing (full time) for the future of your career, knowing that if you take 5 years out, your skills are obsolete?

How do you motivate yourself?

How do you not feel a little bit bitter?

Worriedkat Fri 07-Feb-14 23:09:48

Look into a childminder? Got to be cheaper than £2.6k?

What kind of finance wouldn't work part time? Have you requested flexible working, what would your employer say? Agency work?

IknowImAnArse Fri 07-Feb-14 23:12:56

I am sorry for your struggles too foslady...I really don't want to appear flippant, and I appreciate more so now that I should be grateful for my position.

RandomMess Fri 07-Feb-14 23:14:09

Nanny Share or childminder? Yes it is worth it - you have to look at the costs over the rest of your career earning potential not just those few years.

Can your DH reduce his hours at all?

ceeveebee Fri 07-Feb-14 23:15:15

If you earn mid-fifties you should be coming out with £3.2k a month so how do you get to £63 from that?
I was in finance and went back 3 days a week. Have you discussed potential of PT working with your employer?
You'll get early years funding when your oldest turns 3 which can't be that far off?

SeaSickSal Fri 07-Feb-14 23:18:35

Get an accountant. I'm sure they'll be able to work out some ways to claim some of it back, particularly against childcare and travel. Have you looked at childcare vouchers? They give you tax relief on £243 a month.

I don't think your problem is more to do with your pre-existing debt than tax. Can you figure out a way of reducing payments on that? Maybe a lower interest loan? Or could you just pay the minimum until they are old enough for nursery vouchers.

You could look at moving to a cheaper house short term, perhaps renting somewhere cheaper and letting your place.

Have you looked at the option of a childminder instead of nursery? They are a lot cheaper.

itsbetterthanabox Fri 07-Feb-14 23:19:22

I'm a bit confused by this. Would you not go back to a very similar job? So why would that be a negative impact.

Wantsunshine Fri 07-Feb-14 23:23:25

YANBU It is soul destroying when you pay that much tax and pay for everything. The stress of going back and getting nothing for it except the vein hope that it will be good long term. Feel for you.

If you earn in the mid 50s you'll be paying around 16.5k tax. More than a typo to leap from that to 22k

BackforGood Fri 07-Feb-14 23:28:16

I too am a bit confused by your figures. Can't work out how someone on £55,000 ish is left with just £63 a month when only paying for childcare and travel.
However, without knowing exactly how old your older dc is, this paying for FT childcare for two is only going to be a very short term thing, before you can at least take the 15hrs a week off once 3, and then the school hours off once they turn 4 and go into school.
Of course it's worth doing the job for that year or so without seemingly earning anything for yourself, in order to maintain your position for the next 40 years or however long you are likely to be working. The maths is easy. The emotions may be different, but purely on a financial level, it's a no brainer- of course it makes sense to go back.

IknowImAnArse Fri 07-Feb-14 23:28:56

Pension, travel, student loan makes it more £2.6...

If only I could work PT. It is my dream!!!!!

EYFmakes about £120 difference PCM so that will kick in in September.

Wantsunshine Fri 07-Feb-14 23:32:56

Ceeveebee £3.2k take home is more like a £65k salary by the time you have pension and car tax

IknowImAnArse Fri 07-Feb-14 23:36:50

So back for good, is it school hours the September after they turn 4? That will help!

IknowImAnArse Fri 07-Feb-14 23:39:31

£54k
5% pension
£243 childcare vouchers
Net £2.6k inclusive of £243..
Childcare costs £2,5k
Transport £200pcm

Go figure..

PhilomenaCunk Fri 07-Feb-14 23:39:44

My DH theoretically worked for less than nothing but we viewed it as money out of our overall budget. It's worked as he has been promoted twice in two years and increased his salary by about 35 percent. It's really bloody hard but we've got through, just. Eldest has now started school and youngest will get some funding in September. We will be substantially better off in 18 months when she starts school.

There are many people worse off than us but I look back at the sacrifices my parents made for us and although it's tough and stressful, it's not much different and it will eventually get easier.

SaucyJack Fri 07-Feb-14 23:46:17

Can you really not find decent childcare for less than 2.5k a month?

PhilomenaCunk Fri 07-Feb-14 23:50:47

Also, op are you double counting child care costs. Your 243pounds (and presumably your dh's) should be taken off your total child care costs. Also, they are paid out of gross pay, not net pay so should only cost you £180 ish?

BackforGood Fri 07-Feb-14 23:51:43

YEs, in England and Wales children start school in the September after their 4th birthday (slightly different rules apply in Scotland, I'm not sure about NI)

ceeveebee Sat 08-Feb-14 00:00:21

Ok - can see how it gets down to £2.6k with pension and season ticket.

Can easily understand how childcare can be £2.5k a month - round here its £75 per day for nursery per child, marginally less for a childminder. We have a nanny instead which for 2 preschoolers is cheaper (and has lots of other benefits too)

If have any intention of remortgaging in next 5 years (eg fixed rate deal coming to an end) then don't give up work unless your DHs salary can support your huge mortgage on its own. We struggled to remortgage because I had taken a 40% salary cut on going part time - without my salary we would not have been able to remortgage.

MrChow Sat 08-Feb-14 00:02:54

2.6k a month on childcare ������������

MrChow Sat 08-Feb-14 00:03:09

shock

FudgefaceMcZ Sat 08-Feb-14 00:11:19

I don't see how you can feel bitter when you admit you are in part paying off large debts (which poor people on tax credits can't afford to get into in the first place, so don't) and had two children so close together that you get no free nursery hours for either (which again, poor people on tax credits usually space their children sensibly so they can afford childcare).

On £54k you definitely aren't paying £22k tax. More like £15k. After that, you still have a pretty big wage left over, more than enough for your childcare and transport plus £63. http://www.moneysavingexpert.com/tax-calculator/ says £3190 a month, so subtract your £2600 (not even taking nursery vouchers into consideration), and you have £590 a month, since you say your husband covers all other costs. Take off your transport and that's still £390. That's plenty given that you aren't paying any costs other than food, you say yourself. Most people on tax credits have less than £590 to cover all of their bills, and in many cases don't have a rich husband to cover it!

How on earth are you paid so much in what really must be a non-numerate role?

Wantsunshine Sat 08-Feb-14 00:31:28

And people wonder why going on benefits is a bad idea.

Wantsunshine Sat 08-Feb-14 00:34:16

You would have more disposable income as a single parent, housing paid for, no stress working, no communing costs, get to stay at home with your children.

IknowImAnArse Sat 08-Feb-14 00:34:31

Fudge face really?

IknowImAnArse Sat 08-Feb-14 00:41:27

Ok..so I suppose I should have made my original post different. It's all a bit new his mumsnet thing.

I should have had one post along the lines of : anyone work full time for very little net pay, how does it feel, how do you cope, how do you feel enthusiastic working a 70 hour week for buttons. Have your overall prospects been better do you think than if you had returned to work pT and had time with your children given that the financial side.

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