WIBU for dh to take a big pay cut and for us to claim more tax credits?

[balenciaga]

I was going to nc for this as I think I'm gona be told we are being v v U. But fuck it am on my phone and can't nc on it and CBA to put laptop on to do it

Anyway. Dh has a new job. It's 32k, on that, we get 48 a week tcs with 3 dc (believe it or not that's ok money where we are)

However dh hates his new job, it's stupidly long hours and very stressful with no sign of letting up. I know it sounds pathetic but he has been in tears over it. we have a new (ish) born baby as well and he's never bloody here. And when he is, he is a tired mess and no good to any of us. He has a contact that has offered him a job working for him but it's only 20k

However it's a huge drop. And we initially thought he can't possibly take it as we would be skint. But then we did a calculation on hmrc site and worked out that if he took the new job we could claim higher tcs which would take us up to around a similar income, a bit less but not much

New job dh could do with his eyes closed and it's much less hours and easier work. So he will have a better work life balance and not be making himself Poorly with stress

But the idea of claiming more tcs doesn't sit right with me, and I also worry that soon they'll be put a stop to anyway

So I'm putting this to the mn jury...ps: fwiw I will be going back to work in a few months so we would not claim them long term

[JohnCusacksWife]

Personally I wouldn't want to be reliant on the state unless I had absolutely no other option. What if they change the rules or lower the thresholds for assistance etc?

What's stopping your husband looking for another, hopefully less stressful, job that pays more than 20k. Also it's early days in the new job - things may settle down and become less stressful once he knows the ropes a bit more.

[minipie]

Until the last line of your OP I would have said YABU (or rather YWBU).

However given the last line, YANBU/YWNBU.

If you're going back to work soon, then you're going to get extra income at that point, and you're also going to need DH to pull more weight in terms of childcare etc.

[HouseofEliot]

It will be based on your income last year as someone else said. You won't benefit until next year.

[manicinsomniac]

Won't a 20K be very boring though? The removal of the stress would be a huge relief initially but, if he isn't fulfilled in work, he won't stay happy for long.

I think a system that allows you to decide to cut your hours (I know this isn't your situation but it was someone else's) and still get paid the same money needs changing. But, if people can get away with it, I wouldn't blame them in the slightest for taking advantage of it. But the government are stupid to allow it.

I really didn't know it worked like that. Maybe I've misunderstood but could I, theoretically if my employer agreed (which they wouldn't) say, 'I don't want too work full time I want a 3.5 day week and then I'll just replace the salary I'm losing with tax credits'? I have a feeling there's a misunderstanding somewhere.

[shirkingviolent]

OP I understand the intention may be for you to go back to work in a few months - are you on maternity leave? Do you have a job to go back to? If not, this may not be as short term as you think.

If you have something definite to go to in a few months, will the DH job offer be open then? If so, I would ask him to stay in his miserable job for a few months more then make the leap.

As other posters have said, do not rely on tax credits - they will be reduced and reduced. It may also affect the amount of credit available to you as some providers will use salary rather than income to make a judgement. Also, check what the levels are for a 1yr old as baies under 1 get a higher payment.

My DS2 is 6. When he was born I was amazed to discover I could go p/t & claim TCs and only be 100p/m worse off than working full time (bearing in mind reduced childcare payments too) so I did that. However I was one of the first hit when the present govt reduced the income bands.

I always dreaded renewals too - was terrified I'd done something wrong and would get into trouble. The best day of my life was when I got a promotion last year and could phone the tax credit people and say "take me off the system". It feels good to have no reliance on the state (except CB of course).

What I'm trying to say is if there is truly no other option, then YANBU. However, it would truly be my absolute last resort as you will basically be at the mercy of whatever govt policy comes into place next, and unless you guarantee it would be short term it is actually pretty risky.

[TinklyLittleLaugh]

I have a teacher friend who cut his hours and ended up with virtually the same money on tax credits. Similarly my sister refuses to up her hours because the system means she will not be any better off. Yes the system does not really give you an incentive to work.

On the other hand, long ago in the mists of time, when there were no tax credits, my DH packed in a high salary high pressure job for the sake of our work life balance. He chose to go self employed and we resigned ourselves to being poor but happy. Amazingly his business has flourished and makes massively more than he would have ever earned as a salary.

[niceguy2]

But then if the government are stupid enough to create rules like this, then I can understand why you'd want to take advantage.

[Retropear]

Out of interest what tax credits do you get on £32 k.Had no idea somebody on that much even got tax credits.

[skyeskyeskye]

WTC will reassess it if this years income has dropped and you WILL benefit from the tax credit increase this year. This has happened to both myself and to others that I know. Initally you always claim on last year and then it is always based on the previous year, but if your circumstances change dramatically then they will change the current year. All you have to do is ring the WTC helpline and they will give you actual advice on that.

I think if it is only a short term thing and it will make everybody happier then it makes sense to do it. Please don't see it as a long term thing as Universal Credit is coming into place in the next couple of years and they are going to make it much harder for everybody to claim.

[Retropear]

What salary do TC stop at?

[MmeMorrible]

How old is DH? Does he have a long career ahead of him until retirement? If so, you need to consider the long term view - if he leaves the 32k job for a lower job with less responsibility that won't look great on his CV and May affect his chances if getting a job at that level or above in future.

I'd want to explore with him what it is that is causing the stress, is it his colleagues, the culture in the company he is working in or does he personally not like taking responsibility? Find out what's causing the problem and look at ways if working on it.

I really wouldn't rely on the tax credits scheme remaining as it currently is post the next general election.

[MargotLovedTom]

All these people who are confidently proclaiming that tax credits won't last - what do you think will replace them?

If tax credits are phased out without a corresponding rise in wages then there will be a lot of families out there who will be fucked, to put it bluntly.

[Annietheacrobat]

Retro pear I've just calculated what I would be entitled to if I was a lone parent . Based on a part time salary of £37000 with 2 preschoolers in childcare - it would be £7500.

I had always assumed that the threshold for government support would be lower than this.

[shirkingviolent]

Margot

What will they be replaced with? Poverty of course! A good old race to the bottom.

[Annietheacrobat]

BTW I'm by no means saying that I'd rather be a lone parent with 2 preschoolers.

[gatofeliz]

According the guidelines on the link below you wouldnt be able to claim Annie if you had an income of 37,000

2 children cut off is 32,000 a year

The amount you get is based on your income. As a rough guide, you may
get an award of Child Tax Credit if you have:
• 1 child and a household income of up to about £26,000
• 2 children and a household income of up to about £32,600

Heres the link

www.hmrc.gov.uk/leaflets/wtc2.pdf

[manicinsomniac]

^^
I can't claim as a single parent of 3 on £39000 (at least I don't think I can. I've always just assumed I earn too much so never looked (DD3 is only 2 months old so I guess my entitlement might have changes since having her). I don't need to anyway so it doesn't really matter either way.)

Thanks for explaining Chunderella I can see how it must trap as many people as it gives a sneaky helping hand to.

[sezamcgregor]

Jeeez Annie part-time salary of £37,000? Fucking hell

[TreadSoftlyOnMyDreams]

He's in a NEW job. They are all stressful until you get the hang of them. Give it a year then see.
Stupidly long hours needs to be addressed though. Define stupid? My brother thinks that SIL's 8.30-6.30 day is very long. Personally I think that while it's outside of her contracted hours (+2) that if she wants to climb the greasy pole, she'll have to suck it up.

Re the other job, I'd personally never take such a large paycut which would leave me at the mercy of the state with a general election coming up. You won't know which way is up and when the newborn is 1 yr old, with any luck you will both look back on this year as an unpleasant one but that's it.

If he really can't continue on, then where's the career progression with the 20k job? Is there any ability to earn more? He'll be around even less if he is forced to take a second job.

[HerRoyalNotness]

People should be trying to get off topups from the govt, not going on them for no good reason.

You DH has a job that supports his family. We all at some point have have stress in our jobs. I wish I could give up mine tomorrow, unfortunately we have bills to pay and would get zero assistance. Imagine if we all decided to take a lower paying job and relied on the govt to help us out.

If he wants the 20k/yr job, take it and live on that money.

[restandpeace]

Only thing id be worried sbout is tcs stopping