Does anyone else do this?

[CoffeePuffin]

OH has found a way for us to get a little more money each month. He currently works 40 hours a week (in a job that he hates) and I'm at home with our one year old, Amelia. He brings in just under £1000 a month and we receive working and child tax credits. We are barely scraping by each month and always go into overdraft.

OH was talking to some people he works with that has kids and has come up with a good plan. I get a job for 20 hours, and he drops to 20 hours (meaning we will still have 40hours a week between us). Because he (and I) will only be working 20 hours, he will be taxed considerably less on his income than he does now. And apparently we'd still qualify for tax credits, though I'm not sure if the amount will change. I don't think it will because it's based on household working hours. If we can get our opposite shifts, he can have Amelia while I'm working and vice versa. It would take the strain off of him at work, and it would take the strain off of me having Amelia all of the time (don't get me wrong, I love being with her but it's demanding and I feel it's time for me to get out a bit more). It will be good for me too as I will get out of the house and start meeting people again.

We'd end up a couple hundred pounds better off. And sharing the load on both work and looking after Amelia will be better on both of us.

Does anyone do this or have done this in the past?

 

[Pearls18]

No because to me that is manipulating the system a bit, if you're both able and happy to work why don't you just find some work and him keep his hours? His income is low enough that chances are you will be entitled to considerable help towards childcare if that is an issue. I think people should at least aim to earn what they can for themselves rather than trying to find ways around the system to work less, personally. Also with both being part time on that little hours you wouldn't be entitled to child care help or some of the tax credits because one of you will need to be on 24 hours (I think you both need to do 24 hours to get child care assistance).

 

[CoffeePuffin]

No because to me that is manipulating the system a bit, if you're both able and happy to work why don't you just find some work and him keep his hours? His income is low enough that chances are you will be entitled to considerable help towards childcare if that is an issue. I think people should at least aim to earn what they can for themselves rather than trying to find ways around the system to work less, personally. Also with both being part time on that little hours you wouldn't be entitled to child care help or some of the tax credits because one of you will need to be on 24 hours (I think you both need to do 24 hours to get child care assistance).

I would only go back to work if OH was the one watching LO, I'm not paying a stranger to watch her and there isn't anyone else. I'm not manipulating the system, at all. We'd just be splitting the work between us.

 

[Pearls18]

No because to me that is manipulating the system a bit, if you're both able and happy to work why don't you just find some work and him keep his hours? His income is low enough that chances are you will be entitled to considerable help towards childcare if that is an issue. I think people should at least aim to earn what they can for themselves rather than trying to find ways around the system to work less, personally. Also with both being part time on that little hours you wouldn't be entitled to child care help or some of the tax credits because one of you will need to be on 24 hours (I think you both need to do 24 hours to get child care assistance).

I would only go back to work if OH was the one watching LO, I'm not paying a stranger to watch her and there isn't anyone else. I'm not manipulating the system, at all. We'd just be splitting the work between us.

I just think it's a bit unfair that it is technically the tax payer having to pay for the fact you don't want anyone else to look after your child especially when you're both capable of working (ie by reducing the amount of tax you pay) and yet most working families have to make the difficult decision to let someone else look after their child despite it not being what they want because they don't have any other choice, or they make the sacrifices for one to stay at home. I know it's not easy not having much money but you have more choice than a lot of other families and it doesn't sit comfortably with me as a working household who has to put my son in childcare to help keep my family afloat to hear "I don't want a stranger looking after my child". Anyway I am sure you don't care what I think and perhaps it is more common than I realise, I guess the thing that stuck with me is the fact you pay less tax so to me it is manipulating the system over putting in the work yourselves, but I understand your priority is your family. Anyway I think before you make any drastic decisions you should look at the tax credit calculator and what would happen if you worked 20 hours each instead of one person full time because I think you'll find you'll be entitled to less (for one thing there is a bonus payment for all eligible families who get about £750 a year when one person works 30 hours a week so you would lose that and I think you'll find your eligibility would be different). Some families I know who are reluctant to use childcare try and find hours outside of their parters such as night or weekend shifts, whatever they can do to provide for their children I guess.

 

[jenniferannex]

I haven't done this but I don't see how it's manipulating the system as you're only getting what you are entitled to. If it takes the stress of OH and gives you abit of a break then I say go for it! It also gives LO a chance to spend quality time with her daddy. I think you should do what's right for you, they are only little once, this way you can bring in more money but both still working and LO gets more time with her daddy! Do what you feel is best

 

[amytrisha]

If you can find a suitable job where you'll be working when OH is home and OH can cut down his hours then I'd go for it, do what's best for you and your family!

I don't think it's manipulating the system at all as it's the government who have put those guidelines in place and you'd only be claiming what your entitled to..

I'd class manipulating the system as doing two joint claims at different households to get more money or people who try to lie on the sick. X

 

[Abz1982]

ok yes, it is manipulating the system to a point, BUT, that means you are both working - and is this not what the government wants?? And you would be getting less than if you paid for someone else to watch her as if you did that you would get the childcare tax credits as well. So really its a win win.

 

[CoffeePuffin]

I'm not trying to be greedy. OH is miserable where he works and can't seem to get another job elsewhere as of yet, and barely gets to see his daughter as he comes home just as she is going to bed. I'm starting to struggling with not doing anything other than look after LO and would like to get back out there but at the same time I don't want someone else we don't know looking after her. She has a few health issues that I don't trust others to look after her the way that we do. When she's 3, she will be going into nursery and we will both increase our work hours then and when she's in school we both aim to be working full time again. I don't see how it's manipulating the system if we're getting what we're entitled to. We're not lying or being untruthful. I know people that pretend they're single even though they still live together, so the mother can get more money. We're not doing anything like that. We both want to work, and look after our LO and just need a little extra money to get by.

We got the idea from his friend at work, apparently a lot of his workfriends that have children do the same.

 

[Rachel_C]

I don't see it as manipulating the system at all if you're not claiming JSA or anything like that (tax credits don't count because they're a 'credit' back on tax you have paid, you're still paying in more than you receive). It actually really annoys me that as I don't work, we effectively lose my tax free allowance yet we're not claiming any benefits at all. If one partner stays at home and isn't claiming help to do this, I think the working partner should get an increased tax free allowance!

With regard to your plan, ignore people who are jealous. If it works for you financially, do it! You get to spend time away from home and your LO gets to spend more time with her dad, as well as OH spending less time in a job he hates. It's ideal really... and if there was something wrong with people doing that there wouldn't be the legal possibility of doing it! I also think it's in the same spirit as the idea of maternity/paternity leave being joint now. If people want to argue that everybody should work what they can, that's pretty ridiculous IMO.

 

[Pearls18]

I don't see it as manipulating the system at all if you're not claiming JSA or anything like that (tax credits don't count because they're a 'credit' back on tax you have paid, you're still paying in more than you receive). It actually really annoys me that as I don't work, we effectively lose my tax free allowance yet we're not claiming any benefits at all. If one partner stays at home and isn't claiming help to do this, I think the working partner should get an increased tax free allowance!

With regard to your plan, ignore people who are jealous. If it works for you financially, do it! You get to spend time away from home and your LO gets to spend more time with her dad, as well as OH spending less time in a job he hates. It's ideal really... and if there was something wrong with people doing that there wouldn't be the legal possibility of doing it! I also think it's in the same spirit as the idea of maternity/paternity leave being joint now. If people want to argue that everybody should work what they can, that's pretty ridiculous IMO.

I'm going to take this last part of your comment as being directed at me seeing as nobody else has had anything else negative to say, which is fine it is an open forum I just wanted to say my point and if other people don't agree that's fine we've all been brought up differently. But I feel the need to defend the assumption that if someone disagrees with a plan such as this they are jealous. My husband and I don't just work to provide for our children ourselves or to have a better quality of life, but we have careers that we enjoy and have worked hard for so we do choose to work as well as having the need to. It just annoys me it is possible for people to complain about their lack of money and instead of thinking of ways to actively pursue getting more money for themselves they seek out ways to get more money out of the system whether by getting more tax credits, or reducing tax but in doing less work it all amounts to the same thing, I was brought up in a way that if we needed something we took out more hours, got better qualified etc and worked for what we needed, not thought oh well if I reduce my hours I will actually be X amount better off. And also that some people think they have more of an entitlement to see their children than other parents do, my husband often won't see our son for months at a time, I'm not complaining it's the life we have chosen but there are loads of parents who don't get to see their children through the week and it is often not through a choice but a necessity.

Also tax credits are not a credit back for your tax, it is a bit of a misleading title but that isn't the intention of them, and plenty of people who do not pay any income tax or people who pay small amounts can quite often get more back in credits than they do paying in, not saying I disagree with that but just because you pay tax doesn't give you an entitlement to expect more out of the system.

Anyways that is all I want to say, I wasn't trying to be bitchy or awkward it was just my reaction to the idea and was surprised people openly do this, I am obviously in the minority so just ignore me that is fine, but trust me I am not jealous, I can assure that with being on maternity leave!

 

[Butterball Ma]

I'm in the US, so things are different here. However, I wouldn't be able to do something like that. It just feels like cheating to me. This isn't a judgment, but I kinda feel like it's taking the easy way out. We all want more time with our kids and if you can make it work without it negatively affecting your income, that's great. However, I think manipulating it so that 2 adults work part time in order to get more from the government is wrong. If your OH doesn't like his job, he should look for a new one. No one is "entitled" to have the government pay for their children. You guys have some great benefits over there, but it seems strange to get paid to have kids to me. I feel like the responsible thing to do is continue on, not attempt to get something for nothing. Also, it's your choice not to find outside care for your daughter and that's a choice you must pay for, it's your right, but a right that has consequences. Imagine if everyone decided to work part time because they didn't like their job, lol...oh my, lol...

 

[mum2bee]

At the moment i go college 1 day a week and work my 40 hours into the other 4 days, its becoming to much for me and am going to see if they could half my hours but when ive sat down to make sure ill be ok with money ive realised i will not be worse off at all and wish id of done it years ago, ill never get that time back with my daughter shes been in 7.30 until 6 every night. I dont see the problem with your plan its not like your saying were skint so im going to tell the tax credits hes left me and im now a single person! Your doing nothing that is wrong or imoral! You and your husband to deserve to be a happy family

 

[suzib76]

I don't really see how it would work? Maybe I don't understand the system enough but if he drops his hours to pay less tax and you start working won't you just lose in tax what he saves?

 

[ellismum]

I don't really see how it would work? Maybe I don't understand the system enough but if he drops his hours to pay less tax and you start working won't you just lose in tax what he saves?

Everyone earns their first £10k tax free so if they are both earning under that a year then they won't be paying tax.

However, there may be no NI paid which could cause problems should one of them need JSA and other benefits etc. I would never rely on Tax Credits. The goal posts are moving what with new rules and the introduction of Universal Credit. I would not be surprised if they were phased out completely now new initiatives are being unveiled.