I dont think anyone really understands tax credits, not even the people at the tax credit office. As I now know what I am going to be earning when I go back to work and roughly how much childcare will cost I thought I would call and see if I could get an idea of how much I will receive in tax credits so I could plan my budget and see if my goal to get rid of my debt this year is at all realistic.
Because for some reason they don’t include a lot of your wages when you’re on maternity leave at the moment we get over £200 every 4 weeks, however I know this is going to drop when I go back to work but I should also get some child tax credits towards paying for nursery fees, after checking various on-line calculators which just confused me further I thought I would call up it went like this
long automated security check
me – I’m calling about my income changing
advisor repeats security checks, so your income has changed ?
me not yet but it will be when I return to work
advisor so your currently on maternity leave
me yes until the end of march
advisor do you know what you will earn in the next tax year
me yes gives figures
advisor then your payments will go down but we cant tell you how much by until the 6th of April so call back then
So I basically spent 20 minutes on the phone whilst trying to entertain T to be in exactly the same situation I was before. It frustrated me that I don’t have a true idea how much we will have coming in.
I have sat down and written a budget without including any tax credits, which really is not liveable for any length of time, as it only leaves £60 for food and all fun expenses per month.
The plan at the moment is to try and have an extremely frugal January and stretch out my holiday pay.