Work and Tax Credits... full time or part time?

[DSM]

I currently work full time. My partner also works full time. We are moving in together in February.

I am going to have to tell the tax credits people that I am now living with a partner, and am worried about how our finances will change.

Would I be better off working part time? What would this mean for tax credits? Do I have to tell them we are now living together? He is not DS father, so why do the tax credits people need to know we live together? Do they take his earnings into account, and if so, why?

If I go part time, obviously I will earn less but I won't have to pay for childcare any more and my travelling to and from work costs will decrease.

I would appreciate any advice..

bump... anyone?

Nobody ever replies to my threads... am I really boring?

1. You are assessed as a family. If you are living together, he is deemed to be taking the role of father to your DS, and it is household income that counts.

1. Whether you are better off depends on your salary, but you should always be a little better off by working, at least.

1. www.entitledto.co.uk is a great site. You can look at different scenarios.

We both earn just over minimum wage, my DP is P/T finishing his masters degree so can't really get a better job until later in the year.

I don't really want to go part time, but I would save on childcare costs, and if I won't be any worse off, but saving that £100, plus another £40 or so on transport a week, surely overall I might be better off part time? How are tax credits worked out part time? Do you get more, or less?

Why does my partners salary count toward my tax credits claim, yet my parents, whom I reside with currently, doesn't? He is not DS father, and is not financially responsible for him.

You can't have your cake and eat it. You are either a family or you aren't. Tax Credits rules are that if you live together as a couple, your income is assessed as a couple.

As long as between you, you work over 30 hours, you will get the enhanced element. That is whether your DH works 30 hrs and you 0, or a combination.

Visit the site I linked to. Put in some scenarios and you will get accurate answers.

Goodness, I am not trying to 'have my cake and eat it'. It's just that DS has a father, and there is a part of me that doesn't feel right about declaring DP as the 'father' for the purposes of tax credits.

I have put in a few scenarios, seems we will be worse off. Seems odd, as I am going to be much worse off due to paying rent and council tax, which I don't now, yet my tax credits will go down? How strange.

Hi DSM - 'have cake and eat it' was in reference to tax credits, not my opinion.

WRT the 'father' issue, it really isn't about you as parents, but rather you as a couple. You don't need to declare DP as the father, simply that you are living as a couple. Then you as the mother continue to get tax credits for your son, but the level of them depends on your joint income.

Have you looked at housing benefit? Lots of people who are in a two parent household still qualify for at least some housing benefit.

If you both work over 16 hours per week you may qualify for some of the childcare costs.

You need to view it as a joint finance thing. If you look at the income you both get, and then look at the savings you make by your DP no longer having rent to pay, or council tax, etc. you should be better off overall. One heating bill, one food bill, etc.