Want to plan a baby but completely bamboozled by entitlements - please help!!

[Kirsty79]

Hi (sorry if this is posted in the wrong place but I thought this would be most appropriate)

Can anyone help me please? Please note before you read I am NOT looking to scrounge I just want to know what I am entitled to

My partner and I want to plan a baby but can't made head nor tail of what we'd be entitled to in financial support!! I've tried using the calculators on HRMC etc but they all ask for the baby's date of birth and as yet it doesn't exist!

I'm 30, OH is 28 and we both work full-time, my income is £18k and OH is £13k (before tax).

I would like to take as much Maternity leave as possible, but my company only pays out statutory pay so it looks like I would have to return to work pretty much straightaway as I don't think Tax Credits go up, or do they?? I've worked out that Childcare costs would be approximately £125 per week.

What I (think) I've worked out is that in total we'd be entitled to receive the following

£20pw - Child Benefit
£40pw (approx) - Child Tax Credit
£28pw (approx) - Childcare allowance

Can anyone confirm if this is right or wrong? If it is right I really don't think we can afford to have a baby

The only other option would be if one of us were to reduce our working hours, would this entitle us to more? As I stated I don't want to "scrounge" off any system but my old biological clock is ticking away, and we prepared to change our working hours/lifestyles/lives to suit!!

Any help or advice would be appreciated.... I'm desperate to start a family.

Thanks
Kirsty xxx

[HappyMummyOfOne]

Using the salaries above, the entitlement is wrong. From memory, if you earn over £25,000 you are only entitled to basic tax credits of approx £40 a month and no help with childcare (unless you have multiple children where you may qualiy for assistance with chidlcare).

Child benefit is correct at £20 a week as its standard for everybody.

[theyoungvisiter]

you could put in a fake DOB and see what comes out - make sure it is a recent one though because you get more for a baby under 1.

Think happymummy is correct about the sums after you return to work - but of course if you are off on mat leave then you would be entitled to more tax credits as SMP does not count as income for tax credit purposes, so your net income would be much lower for as long as you were on mat leave.

Don't forget you may be able to salary sacrifice for childcare vouchers, thus saving tax and NI on the money you pay out on childcare.

[Kizzipoppet]

Hi

Yes, you would get current rate of £20 per week from the baby's birth. SMP is first 6 weeks at 90% of your salary then up to the end of 9 months at current rate of £125 per week. I have been told it might be going up next year to 12 months.

You also get a government grant of £190 which you can apply for when you are 25 weeks pregnant. It is a one off payment to all mums to be.

Regarding the cost of having children, to help keep costs down, scoot around for 2nd had stuff, you will save an absolute fortune! (local paper ads, ebay, NCT sales, car boots etc etc).

You will also be entitled to help with childcare costs - I think tax free for your salaries, ie about 20%. Regarding tax credits, I think you can do an online quote to see what you are entitled to potentially. But, yes, it will be not that great but it all adds up!

Good luck with your family planning, they are expensive but soooo worth it!