would i get help with childcare costs?(8 Posts)
My baby has not been born yet. It is due next month. I know I will struggle on maternity pay but i am more concerned about when i go back to work. You see, the way i see it, i will then have the same approximate income as being on maternity pay (partner full pay and me on half pay as i intend to do 18 hours a week rather than full time) but in the mix I will then have to pay for child care. I have tried going on the various calculators but find it very confusing as they are always talking about the previous tax year and obviously that will have been different.
Basically, my partner will be earning approx £16,000 a year and I will be earning £8,500. If we were not in debt, we could probably do it but the fact that as well as a mortgage we also pay about £300 a month out in debts means i will be £100 in the red every month. Does it sound like I would be entitled to child tax credit if i use a registered childminder? We do not have any other income. I will be going back to work in August 2012. I know that there have been changes to tax credits and i thought perhaps i will only get them if i work over 25 hours. By the way can anyone tell me what DS and DH stand for? I know what they must mean from reading posts on here but am just curious!
for the calculator use your estimated income - its up to an indivudaul childminder if they will take payment by tax credits -need to ask them - I thought the hours limit was 16 hours but you will need to check - this is a good link and a good site ingeneral about money saving
this will tell you want DS and DH mean and many more...
My tax credits go into my bank account and then I pay the nursery - they have no need to know anything about whether I claim tax credits for childcare, you just need their Ofsted (?) registration number to fill in the forms. I thought it was 16 hours too, but not reclaimed yet with DD1 (darling daughter number 1!) so not caught up with any changes! Except that all help has been reduced from 80% to 70% leading to me quitting work for a while, but that's another story. Gotta go now, but sounds like you would get full help to me.
For the first year your earnings will be very low as they don't count the first £100 a week of your maternity pay.
So if you're on mat leave for 39 weeks you take away the first £3900 from your earnings for tax credits purposes
Also, you take off what you pay into your pension (same for your dh)
You will get help.
Also, even though it is confusing, if you work and jointly earn under £30,000 it's definitely worth applying. Also, I think the hours you have to work are 30 split between you and your DP (darling partner) with one of you working at least 16. Would have to check this. Get the tax office to send you the leaflets. The ins and outs are mind-numbing but you don't have to understand it, they do, you just need a rough idea of whether you fall into the criteria. I would say you do and their info will help with this. Just to clarify, my DS1 (take a guess!) went through nursery with 80% paid for and our earnings varied but were roughly similar to yours. Don't be put off by the complexity of tax credits, they work it out for you, just put in the facts and figures.
Isn't it all changing next April though? Once again, all the calculator tools are based on NOW and I need to know how the land will lie next year. I have looked on the main tax website and when it mentions the changes, although it doesnt say specifically my situation, i get the impression from their examples that it will not be the same next year.
Phone them. And if you don't get someone helpful, phone again and get someone else.
Don't forget child benefit will be worth nearly £20+ a week as well
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