Tax Credits if Husband Going to Study

[swishswirl]

My husband and I both work between 16 - 30 hours and get about £200 a month tax credits towards child care.

From September I will increase my hours to 30 and my husband will reduce to about 12 hours because he will become a full time student.

Does anyone know if we will be entitled to any tax credit or other help? We will struggle to survive if we lose our tax credits because we will actually have increased childcare costs because both at work/uni at same time.

The entitledto website does not advise unless both working between 16 - 30 hours and uni website says will only give bursary if take out full student loan which we don't want to do if we can help it.

I am hoping that we will not be penalised for my husband wanting to improve his career prospects by studying and working less. Any tips gratefully received!

You both have to be working at least 16 hours to get help with childcare costs from tax credits.

I am unsure as to why you expect not to be penalised money wise for working less hours and choosing to study - its a lifestyle choice at the end of the day.

Not sure if this helps - studying doesn't count towards working for tax credit purposes and so there will be no help with childcare costs. You can apply for assistance with childcare costs through the student loan people. We did that but got no help towards childcare. So our tax credits went down.

Thanks Worzella - that's what I thought but wasn't sure. I am increasing my hours to compensate for husband working less so should be taking home same overall joint income.

Will now need to work out how we can make up what we will lose in tax credits and what we will need to pay in extra childcare. My work won't increase my hours to more than 30, so we may need to get out a student loan. Have just paid off other debts but as HappyMummy says, it is our choice.

I was hoping that the government would provide some financial incentive for parents to study like tax credits are supposed to encourage people to work but sounds like it is not the case. Will be worth the sacrifices just to see husband reach his full potential.

At least we should get money off our council tax bill with a full time student in the house - I hope.

Have a look atthis
Not sure if your DH's course qualifies as they are pretty vague and your annual household income needs to be under £20k.

Thanks gosssipgirl for that link. Unfortunately our joint income is over £20k but it is good to know that there is help out there for others who are in similar circumstances but earning less.

Will just need to tighten the belts for a few years - husband going to do a full time degree after his access course just now. He is really enjoying studying and doing well with his marks so far that it makes it worthwhile - will check out other threads for money saving tips! Also just remembered that I can claim childcare vouchers at my work if we are no longer getting tax credits.

Thanks again everyone for the advice.

I'm a bit hazy on the whole system, but you can get child tax credits even if nobody is working. We are both students & we get child tax credits at £50 a week or so.