Considering amicable separation - tax credits really that much??

[loveverona]

My DH and I are considering a separation. We are very lucky that it is all going to be amicable so we have been able to talk things through and will be doing it all very gradually. We have three DCs (3, 6 and 9) and I am self-employed. I will be eligible for Child Tax Credit, but the hmrc calculators are coming up with £8500 per year! This seems a very large amount. Am I to think this is correct? I've checked a couple of calculators and they've both come up with the same figure, but we're very surprised it's this much (not complaining you understand!).

£163 a week? Yeah it could be right. I have a friend with three kids, her ex works f/t, she worked p/t (though I'm 90% sure she wasn't declaring it) and I think she gets about £160 a week tc.

Thanks ck. I thought it would be about half that. Anyone else out there with knowledge/experience of this?

bump

You need to be working a minimum number of hours to qualify and will I believe be assumed to be working for at least minimum wage if self employed. The whole system is changing with phase in fromnext year so don't plan your seperation finances on 2012 figures. From next year the new benefit is not payable if you have assets, other than a primary residence, savings over I think £16k, the payment will also be calculated on a very different way but few figures are available yet.

Does that include the contribution to childcare?

I would be very wary of assuming you will be better off on tax credits as a single parent. The whole system is changing and single parents, along with lots of others, will lose out.

Good luck with the separation. We managed to keep things reasonably amicable but that doesn't solve my childcare headaches at 7am when the CM rings to say she is ill and there is no one else to take DD and I am expected to be at work within an hour............ I pay a lot in unsociable hours fees (before 8 and after 5).

Of course, if your X is willing to live close by and could do school runs that would be good. A friend has this situation and it works well. Again, be cautious, people change their minds, meet new partners. Not being a doom merchant just that you should be careful.

What are your earnings for 2011/12? I earned about £8,500 in 2010/11 and got about £160 a week in CTC and WTC (and not including any childcare tax credits). Earned more last year so not getting so much this year.

My XH and I are also generally amicable which has definitely helped the DC who are 8 and 6. Hope your separation goes OK.