Return to Work after Mat Leave Need Calulator & Advice pls!

[colourhappy7]

Hi,

I was a part-time music teacher (self employed) before my maternity leave in Jan, and planning going back to self employed work in October this year when Mat allowance stops.

I am really struggling to know what is best, in terms of how long I can work, without losing out financially - does anyone know of some kind of calculator where I can work out where the cut off point is, as I don't want to be working any longer hours than I need to, and then it going straight to the tax man - here's a few figures if anyone can help_

My hubby works fulltime and on £35,000 a year gross,

I am thinking of returning to work for around 13 hours a week, and will be paid roughly £10,000 a year, gross.

I will also need to pay for childcare for 2 children (age 2 and 9 months) for the hours I work, so this will cost around £2,000 per year.

We own our own house, so aren't eligible for rent help or anything

Does anyone know if I need to work 16 hours a week to get certain benefits, and someone also mentioned that if your household income is above £40,000 a year, you lose certain benefits - what benefits do you lose? I'm wondering if it may be worth me earning a bit more than £10,000 a year (so working more hours) if I can guarantee that this won't just be sucked away in taxes/loss of benefits.

So, my dilemma is, will I be better off financially to stick at the £10,000 earnings per year, and would earning above that be beneficial or disadvantageous financially?

Help please!!!!

On a joint salary of £45k you will only qualify for basic tax credits until April, after that none as the cut off point has changed with the budget. Child benefit is the same for the next three years and not means tested at present.

Thank you!

So do you think I would be better off working only £5,000 a year, Any idea how much basic tax credits is, as I'm not sure if I'd be better off working £5k a year, or possibly working £10k, and forfeiting the tax credits totally, if they're not that much...what do you think?

Basic tax credits are only £545 a year (£40k joint salary from 2011 dropping down to £30k in 2012) so dropping down to earning only £5k would leave you far worse off.

Tax allowance will be increased in April so you wont pay that much tax on £10k anyway.

Thank you so much for replying - I think that's settled it then, I may as well go back for £10k and forfeit the tax credits if that's all we're getting...

Is is £545 per child or per family (I have 2 under 2).

£545 is the basic family element and is the same for one child as two - slightly diff I think if three children. The baby element is being scrapped but that gives an extra £545 whilst the child is under one - presume it gets scrapped in April.

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