Any ideas on how to work out child tax credits?

[lucyfromleeds]

I'm expecting my first child and trying to work out my options for returning to work after maternity and whether I can afford part time or need to come back full time (in readiness for my meeting with HR).

Basically I need to try and work out all the different options i.e. working full time, working 3 days , working 4 days plus childcare which I may or may not have help from the family with on certain days.

My partner will be working about 40 hours a week.

I've tried to use the HMRC calculator and making up a DOB for baby but it only tells me what i'm entitled to until April this year.

Does anyone have any idea how I can work out an average of what I might get?

maybe phone them up?

when are you due? I don't know if they would give you any amounts yet?

Not until August, I'm probably getting ahead of myself but people keep trying to explain it to me which has got me confused and now I am panicking that I have no idea what I am doing!! Thanks for the help

I'd be vary wary of cutting your hours if you need benefits to survive as tax credits will be phased out shortly and you may not get the extra hours etc you need to stay afloat.

If you can wait until the end of March to make your decision then the online calculators such as the one at HMRC or the Turn2Us Benefit Checker will be updated for the new tax year.

I would also urge caution about relying on benefits for your family's income long-term.

Its virtually impossible to calculate. We have been trying to do the same thing as I am about to go back to work.

Basically you add up the elements that you could be entitled to:
www.hmrc.gov.uk/rates/taxcredits.htm#3

• then you 'taper' based on your income. I think the taper starts at £16,190, so for every £1 you earn above the threshold you lose 41p of CTC. Until April you could still get the minimum family element until you earned £40,000. Now that is tapered as well so you will only get something to about £26,000. (for one child)

If you go back to work, you need to work out how much additional tax credits you might be entitled to, then add them to what you are entitled before you taper based on income.
www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-pay-childcare.htm

You need to know your partner's income (net of pension contributions, and tax on this if it is a private pension) and what you think you might earn in the different scenarios (net of pension too).

Then, if you spend hours and hours on the internet, with calculators and pieces of paper and different colour pens, you will get an estimate. Honestly, I would wait.

But 2 helpful things I can tell you:

1. You give your income to tax credits people net of pension contributions (as I said above!)
2. The first time you claim, you will be on mat leave so your income for the current year will be less than for the previous year. So claim based on previous year's income, like they tell you on the form, then write in a letter with an estimate of this year's income and they will reassess you.

I agree do not rely on it. I have a 9 month old - he was born just as the coalition was making all the cuts (most of which I agree with, but anyway!). So if I had had him a year earlier we would have been something like £1500 better off in the first year.

More cuts are going to be made - and I think they are likely to be around tax credits for childcare and the free 15 hours childcare from age 3. Don't rely on anything the government may or may not do.