Can I claim Unemployment Benefits if I decide to become a SAHM? sorry long rant

[MrsBigDrumsADrumming]

As dh is on leave I actually have time to think and worry about things...

Ok. so here's the deal... I'm currently on maternity leave and would love to go back to work in April, BUT if I do, then childcare for both kids plus travel cost would cost me more than I'd clear a month and that's with a very reasonably priced childminder and before any other possible expenditure.

I like my job, but not enough to be willing to pay for the priviledge iykwim... did my calculations and and boss would have to give me a pay rise of at least £5000 to make it viable ... yeah right ! He's a regular scrouge (how's that spelled?)

I've been trying to work out options by trawlling through the inland revenue and job center sites but tbh I found it all very confusing, and I'm usually very good at research...

I've read about the new childcare voucher thingy so the money comes out before tax and therefore the tax group would be more favourable but don't think boss will go for it considering that we are only 9 staff (incl. cleaner and guard) and he hates additional paperwork.

We don't qualify for the childcare part of the childcare credit (done the calculator thingy on the IR site) as it's based on last year's income... how daft is that? Of course I was earning last year... didnt have the baby then!

Working Family Tax credit... forget it

So basically trying to work out whether I would be able to claim unemployment benefit if I decide not to go back to work.

Wouldn't it be nice if there were a SAHM benefit, it's not as if we sit on our lovely behinds all day not doing anything!

Sorry rant over

Happy New Year!

Hi MRs Big D,
Something that no one else apprears to have touched on yet is the childcare voucher scheme. As you say that your boss is a total scrooge, I would think he would be all the happier to participate. Because the vouchers are taken out before your tax is calculated, that also means that he doesn't pay the employer taxes (which are more than yours). Could you possibly work out how much you would be saving him, and then present that to him. He might go for it if you show him how it saves him money. IT's worth a try anyway before you write it off.

Alternatively, have you considered a bit of a career change? What about doing something from home, such as childminding. You would have no childcare expenses and bring in a bit of cash as well. You would probably be financially better off than returning to work to pay someone else to look after the kids. Although, if you might consider doing this, I would caution that depression route. I only say this because I wonder if your sutomers would like to leave their kids with someone who has it on record that they are unable to work due to depression.

I hope this is somewhat helpful!

you can certainly get your tax credit level changed if your circumstances change - it was easier to do that than to get anything in the first place. If you childmind your home has to meet certain standards - put me off when I looked into it.

Uwila - might have to do the number crunching to see how much the child care vouchers would safe. As for childminding... I barely have enough energy/patience for my to iykwim

Lunar as you seem to be a mathematical genius... do you know how the vouchers get calculated exactly or where I can find an on-line calculater for that?

Ok the voucher scheme is changing from April 2005. At the moment you can have as much as you like (up to the amount of your childcare cost), and neither you nor your employer will pay NI on it. From April it's limited to £20/week (or (£218/month) but it's free of both tax and National Insurance.

Anything you receive as vouchers doesn't count as income for the purposes of calculating tax credits, but I don't think spending them counts as expenditure on childcare either (would need to check if this is still the situation next year???).

How beneficial they are to you will depend upon your tax situation but you could save £16.50/week on your nursery costs by getting vouchers if you are a basic rate taxpayer earning over £180/week.

Oh and the vouchers are per parent, not per child, so lobby your partner's employers to offer them too!

Some details here about the scheme.

Thanks Lunar!

Oopsw - late night, post-party typos! That should say £50 per week, not £20. Sorry.