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Original poster

OMG just worked out i`d be better off not working !

24 replies

fakeblondie · 02/12/2010 12:52

Ive just had my 4th baby and always worked and alweays will-just played around with tax credits calculator and even tho im in a professional job by the time i take away childcare and diesel i`m basically returning to work for nothing !
If i stay off they wou;d pay me almost 600 per month PLUS 4 x child benefit . My wage is my own so i can do coffee on that ! No wonder people dont want to work fgs i cant believe that.
I will go back so i dont have to start at the bottom again in 5 years otherwise i am now officially working for naff all !
Tempting tho ....

OP posts:
LadyLapsang · 02/12/2010 14:18

You're not working for nothing, you're working to maintain your career and support your family yourself. Anyway, when calculating costs associated with work I hope you are only factoring in half as surely your DP / DH needs childcare to work too.

Original poster
fakeblondie · 02/12/2010 17:47

What i meant was i went thro the whole thing with me earning zilch ( instead of what i really earn, just out of curiosity ), -based on my dh salary , and having 4 children my tax credits would be enough to live very comfortably on as i only work 2 days a week - and my after childcare i end up with not much more-that would be easily recuparated being at home and having time to budget better-at the mo i trolley dash ! Prob waste 100 per week on crap cos i`m always in a rush-actually treble that !

OP posts:
booyhohoho · 05/12/2010 18:10

when you are working you are also building your pension, tax and NI contributions.

pleasechange · 06/12/2010 08:40

If you don't mind me asking, what is your DH earning to get you £600 pm of tax credits (just curious)

Bonsoir · 06/12/2010 08:44

"when you are working you are also building your pension, tax and NI contributions."

I'm not sure I understand what you mean by "building tax contributions". Tax just goes into the coffers of the exchequer.

NPV of pension contributions is pretty hard to work out, IMO!

PinkElephantsOnParade · 06/12/2010 11:17

SAHMs get home responsibility NI contributions while they are at home looking after DCs under 16.

Tax doesn't buy you anything personally.

The point re keeping your career going is valid, it depends on what field you are in.

Though quality of life should be a factor.

If you enjoy your job, great, may be worth keeping going through the lean early years.

If you don't and are only doing it for the money I would jack it in TBH. Not worth the stress.

Appletrees · 06/12/2010 11:21

You aren't the only one.

scaryteacher · 06/12/2010 12:19

'SAHMs get home responsibility NI contributions while they are at home looking after DCs under 16.' No they do not - the rules changed in April this year, so HRP only payable until child is 12.

PinkElephantsOnParade · 06/12/2010 12:39

scary - I didn't know that, thanks for filling me in.

In that case, a rethink may be in order when DCs get to 12.

Not in my case, though.

Financial imperatives mean I have worked continuously barring 5 mths out on mat leave for each DC.

If it did not stack up financially I would not work.

darleneconnor · 06/12/2010 15:25

NI contributions you make while working give you more benefits than HRP. eg ESA/Bereavement payments/JSA.

Also HRP only applies to full tax years soo if you have lots of stops and starts (as you might with 4 DCs) you may not build up your full entitlement.

Have you claimed tax rebates for the years where you were on mat leave? You may be due a 4 figure sum.

Also remember that tax credits are usually based on previous years earnings not current so take this into account when making long-term better off calculations.

StrikeUpTheBand · 08/12/2010 10:46

"Have you claimed tax rebates for the years where you were on mat leave? You may be due a 4 figure sum."

Sorry to hijack a little, but honestly? Is there any way I could check this?

violethill · 08/12/2010 20:21

What Ladylapsang says

darleneconnor · 08/12/2010 20:23

Well PAYE takes tax off you every month on the assumption that you will earn that same monthly amount all year. So if you go on mat leave your annual earnings will likely be less than 12x your monthly earnings before you left. This can also work for the tax year you return in and if you switch between part time and full time work.

You can try to calculate it yourself by checking your tax year earnings, deducting the tax allowance that year and seeing if the income tax looks like more than a 1/5 of the remainder.

Or just get your P60s and send them to HMRC for a reassessment.

I got £900!

CarGirl · 08/12/2010 20:23

Also CTC and CB will be cut next year......

DilysPrice · 08/12/2010 20:33

What Darlene said. Unless you take your mat leave April to April there's a very good chance you're due a PAYE rebate, potentially significant.

StrikeUpTheBand · 09/12/2010 16:45

Thanks - will check this out

peppapighastakenovermylife · 09/12/2010 16:47

I realised a few months ago that if I had given up work when DS was born we would have been thousands of pounds better off by now!

Just didn't occur to me to check as working pays doesn't it Hmm

Eddas · 10/12/2010 22:11

darleneconnor, that's not right, about the PAYE, unless your PAYE code is a week 1/month 1 code, tax is cumulative on a 'normal' PAYE code. Infact what I have found when people go on ML is that they receive a little tax refund each month in their pay. I know i did.

darleneconnor · 11/12/2010 00:39

Well I didn't and I got a £900 refund. A lot of employers maybe aren't as organised as yours.

Eddas · 11/12/2010 08:08

Fair enough, but It's not about being organised, it's about operating the PAYE code given by HMRC. If HMRC give the correct PAYE code you should not need a tax refund, it should all be worked out via the payroll scheme operated by your employer.

But HMRC are notorious for NOT giving the right codes, I should know as I check quite a few in my job and a fair few aren't correct and I have to ring HMRC and query them and often this results in an amended code being sent out.

spidookly · 11/12/2010 08:17

Eddas - how can I tell if I am getting a little tax refund each month?

Tax is one of those things that makes my brain refuse to pay attention.

Eddas · 11/12/2010 08:20

on your payslip it will have a negative figure for tax rather than a positive and it may well have an 'R' next to it indicating a refund.

foxinsocks · 11/12/2010 08:29

what happens is that your PAYE is worked out based on a prediction of your annual salary from your monthly earnings. Theoretically, when you switch to SMP that should readjust your monthly earnings so they re-predict your annual income and base it on that.

Where people often gain hugely is where they quit work part way through a year and don't get another job as their tax has been calculated on an annual income which then isn't correct.

If they haven't adjusted your tax through your maternity leave then your payroll department has made an error and it's lucky you picked it up! Always worth checking these things.

spidookly · 11/12/2010 08:41

Thanks, no I would have noticed that as I was expecting something like that and was surprised it not to see anything.

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