Thoughts on my budget please

[rudehealth]

Recent divorce to high earning ex (£150k plus £65k bonus).

I won’t bore with detail re reached agreement ie I got the house (lots of equity) but don’t touch his pension etc)

My question is - what do you think of this..

Income £28,200 maintenance from my ex
Child benefit £1668
Child tax credit £5748
Total income £35,616
Monthly £2968

Mortgage £802 per month
Gas and electricity £80
Groceries £30 (not a typo. Aunt pays)
Holidays £5000 annual so £416 a month
Petrol £80
Insurances £220 (car home life health)
Council tax £18 (subsidised)

I can’t put a figure for clothing because it varies. One month nothing, the next £400 (winter coats and boots for example). Over the year I estimate £3500

Miscellaneous?? Stuff for house (off bit furniture / twice yearly carpet clean etc. Really no idea - £2000??

Entertainment: £1000??

After school activities (£1250)

Anything else?

2 children (5 and 8) plus one adult

No problem, I find it handy for not forgetting things like yearly bills like Car MOTs and Christmas and birthdays and random stuff like haircuts or getting the chimney swept!

No I don’t think I’ll lose all tax credits on £27k either, especially as lone parent with two children

Sorry I see you had listed childcare - TC goes up to £45.36 a week, so assume £200 a month.

I think you will lose all your tax credits because you starting work again will be a change of circumstsnces that will move you onto universal credit.

Do you have any savings at all?

You get £28200 a year in maintenance plus over £5000 in tax credits and your Aunt is paying for most of your food? Given that I earn less than you receive in maintenance and I get about a tenth of what you get in tax credits and I have no one handing me money for food shopping and the rest of it, I think it’s a bit of a joke if I’m honest!

Aunt paying for food- I'm intrigued?

Wealthy spinster aunt, lovely and v generous. Wanting to off load money before inheritance tax!
Credit card just for groceries up to £300 a month. I pay about £30 on top.

If I start work before November then I will stick with the old system on their transition period.
Then when I move to UC (when there is a change in my work situation), my tax credits will fall significantly but advisor said that I would still be entitled to some as a lone parent on £27k income (payments from ex discounted).

Thanks for heads up re all the bits i had missed
Job for tonight is to list it all against income and see where I’m at.

I'm confused you will have the child maintenance and a salary of £27k when you go back to work? Surely that means your mean your income is more then and tax credits would stop on a taxable income?

You get double from your ex than I get working full time... you'll be fine - entertainment, extra unaccounted for clothing, holidays are not essential. Keep an eye every month and make sure everything is paid for before you think about buying luxuries. You'll be fine

Why is your CT subsidised???

To be honest this is a bit of a piss take thread. I appreciate everything is relative but it's quite distasteful to people who genuinely struggle.

It's stealth boasty OP!!!

Because my maintenance from my ex is regarded as 0 in the benefit system.

Stealthy boast?? Good grief.
My ex is on £150k plus huge bonus.
The consensus amongst friends and family is that I’ve come off very much the worst party! my ex has the children two nights a month and I have no family practical network in the area (parents deceased)

Well you don't sound too hard up to me???

Seriously.... It's instances like this I think the benefits system should be reviewed. You get in maintenance what is an average salary in a lot of the country. Yet if you work you get fuck all help.

Once again the wealthy are favoured.

Never said I was hard up

You asked what we think of your budget and I think it’s a joke that you’re getting all that maintenance plus money from a relative. I think you probably won’t be entitled to all those tax credits if you are getting money from your aunt every month. It’s a joke because some of us work full time and can’t claim the amount of tax credits you do, therefore it isn’t fair. Most people on tax credits won’t be having life insurance and thousands to spend on holidays and clothes and entertainment.

It pisses me off that other income streams are not always looked at for tax credit purposes.

You won't lose any tax credits if you start work and earn 27k a year. Maintenance payments are not included in a benefit calculation.

However, even though you're entitled to help, you won't need it on your wages plus the maintenance payments so I wouldn't worry about your finances.

What I will say though is it is very hard to living a life with a high income to then living a life on a lower income. You will need to go on cheaper holidays buy cheaper clothes etc to live within your means

It pisses me off that other income streams are not always looked at for tax credit purposes.

As far as I know it’s only child maintenance that is excluded.

I don’t make the rules.

@hmmwhatatodo

I certainly declared that I was receiving that money from my aunt on a monthly basis. Didn’t affect my tax credits in the slightest. Works out to be £3600, well under the threshold of £5k

I don't blame OP for accepting any benefits or help she is entitled to! I'm sure we'd all be grateful for an elderly aunt paying for grocery shopping each month!

Will he honour that amount of maintenance long term? It would need to be set in stone or he could just stop paying? I'm not sure what CMS minimum would be on his salary (unless that's it??)

When you go back to work, will you be employing a cleaner?

Is this child maintenance or child snd spousal maintenance? How long does it last for?

Leafy - most definitely
I’ve lined one up already as so they’re busy around here. Once a week for three hours. £11 an hour. Thanks not considered