Child tax credits on term time only contract

[MaverickSnoopy]

I'm returning to work after maternity leave, but into a new job. The job is part time and term time only and I have been offered full time in a couple of years (possibly sooner) when the company is more established (they're a start up). In the mean time we're going to have to claim CTC - although I've also set myself up as a freelancer to try to make some extra money....although not much success yet so expect this to be slow.

We have never claimed before so I'm feeling a bit in the dark. We'll be paying for childcare during term time only, but do I want to be paid for the work that I do in term time, or do I want an annualised contract where my salary in spread across the year? Does anyone know which of these options works best with tax credits or if it doesn't make any difference at all.

I'm worried that if I opt for on option then it'll be too confusing for tax credits or that we won't be eligible. I've run the calculator online as if my salary is annualised and then the childcare is annualised anyway, so this seems like it's the best option, but I've read so many horror stories online that I want to attempt to get it right!

My new manager is asking what I would prefer and I'd really like to get back to her before Monday so I don't really want to have to try and get through to tax credits on Monday. Any experience would be very welcome.

I would go for annualised as it will make budgeting so much easier. Tax credits update your income in real time now so your figures will be all over the place.
However with childcare you give them an annualised figure anyway and only tell them if that figure changes

Will be all over the place if you get paid term time only I mean

Just remember being term time only will reduce your holiday entitlement too, in the same way as being part time does.

Thanks both, that's really helpful. Yes I do know about annual leave and am expecting it it be prorated twice, once for term time only and one for part time; I used to work in HR so I'm familiar with that aspect. I'm just totally out of my depth with tax credits, but what you say is helpful, especially as I was learning towards my salary being annualised, but I wasn't sure if that would screw up tax credits. Definitely sounds like the better option though.

I would definitely get it spread out over the year, as others have said it makes budgeting easier! Also I believe with childcare they would just go for the average weekly cost, so even though you're not paying for the entire year, they would add up the cost and divide it by 57 to give you the average weekly childcare costs? I could be wrong on the front however!

Congratulations on your new job though

Thanks yes I'm pretty sure that's what they'll do too. I've used the calculator online and realised though I don't have the foggiest how much we'd be entitled to ask you have to put in dates for childcare and we have so many variables it doesn't quite fit. So we'll have to wait and see.