Tag: finance

2 min read

Finance

15 Hours Free Childcare for 3 and 4 Year Olds

Zoe

March 19, 2021 12:24 pm March 19, 2021

2 min read

2457 views

No Comments

2 min read

I was always under the impression that because we were not eligible for the 30 hours free childcare, that would simply be it. Wrong. You can still get 15 hours…

I was always under the impression that because we were not eligible for the 30 hours free childcare, that would simply be it.

Wrong.

You can still get 15 hours free childcare.

All 3 to 4-year-olds in England can get 570 free hours per year. It’s usually taken as 15 hours a week for 38 weeks of the year, but you can choose to take fewer hours over more weeks.

What are the requirements?

You must be with an approved childcare provider.

What is an approved childcare provider?

Registered school
Registered nursery, childminder, playscheme, club or a nanny.
A home care worker for a registered home care agency
A childminder or nanny with a registered childminder agency or childcare agency.
childminder or nanny with a registered childminder agency or childcare agency

If you are unsure your childcare provider is registered search through Ofstead.

Childcare that is provided by relatives can still qualify if they are a registered childminder and care for your child outside your home. So basically, if your child’s grandparent looks after them casually on a Friday, you can not claim for free childcare hours.

This also goes for if your partner stays at home looking after your child. You can not claim for free childcare hours. And foster parents can not claim unless they are registered childcare.

How do you pay the childcare provider?

If you are eligible for free childcare hours, you can pay the childcare provider using:

Universal Credit
Tax credits
Childcare vouchers
Tax-Free Childcare

When does the free childcare hours start?

As soon as your child reaches three years old, you can get the free hours after the term from their birthday. Simply ask their childcare provider for the form if they have not already asked you yet.

When does the free childcare hours stop?

When your child reaches compulsory school age the free hours will stop. For most children this will be when they first start reception.

No Comments

4 min read

Finance

Help To Buy ISA | DEADLINE

Zoe

November 27, 2019 1:32 pm November 27, 2019

4 min read

1877 views

No Comments

4 min read

Are you a first time buyer? If you save for a mortgage deposit in a Help To Buy ISA the government will add an extra 25% on top of the…

Are you a first time buyer? If you save for a mortgage deposit in a Help To Buy ISA the government will add an extra 25% on top of the amount you have saved!

But, time is running out!

When is the deadline?

The deadline to open a Help to Buy ISA is Saturday 30 November.

How much money do you need to open one?

All you need is just ?1 and you can be eligible for up to ?3,000 towards your first mortgage.

Who is eligible?

You need to be a first time buyer ages 16+. You have to have a valid national insurance number.

What does the government add?

The government will add 25% tax-free to whatever the amount is in the ISA when it is used to buy a home. There is even a bonus of up to ?3,000 if your total amount in your ISA is ?12,000.

The minimum amount in your ISA to get a bonus is ?1,600 and you can get a bonus of ?400.

Buying a house together?

If you are both first time buyers then you can both get a Help to Buy ISA.

Can I use the bonus on the house deposit?

Be aware that the Help to Buy ISA bonus is for the mortgage deposit not the house deposit. You only get the government?s bonus with the Help to Buy ISA bonus on completion. So if you are planning on using the bonus towards the house 10% deposit. You may need to speak to the seller to agree on a lower deposit that you can afford.

You get the bonus when you become the legal property owner.

It is designed to help cut the cost of your mortgage and reduce the amount you need to borrow.

If this is an issue for you, the Help to Buy ISA might not be the best option for you. A Life time ISA pays you a bonus monthly.

What happens if my circumstances change?

If you find yourself in a new job down the line where you have to move abroad then you can still rent out the property you have even if you used the Help to Buy Isa. You can not rent out the property if renting is your intention when buying. You may have to pay the bonus money back.

Will I lose my money if I don?t end up buying my first home?

You will not lose your money. In fact you can withdraw all of your money penalty free.

What happens if I have already invested the money into a cash ISA?

A Help to Buy ISA counts as a cash ISA. You can only make payments into one of these ISA?s in the same tax year.

You can transfer your savings over into a Help to Buy ISA but, this depends on the total amount of you have paid into your cash ISA this tax year.

The best option is to speak to your provider if you are wishing to transfer as not all providers allow this option, especially, if you have paid more than ?1,200 since April.

If you have paid more that ?1,200 into a cash ISA, you will need to open it with a provider that allows you to transfer and then ?split? your cash ISA.

Natwest and Nationwide allow you to open the Help to Buy ISA and the cash ISA where as, other providers if you have paid ?1,200 will make you either withdraw ?200 or invest the ?200 into stocks and shares. Again speak to your provider if you need more advice.

What happens if I can?t make the max payment this month?

Still open one and keep your options open. You just won?t be able to make a double amount next month. You will only be able to put in ?200 not the ?1,200 the first month offers.

If you are interested in the Help To Buy ISA then you can apply online right up to the closing date. But, remember the closing date is approaching so don?t leave it until last minute.

You don?t need to be currently banking with the ISA provider and you don?t have to have your mortgage through the same provider either.

No Comments

4 min read

Finance

Qualifying for tax free childcare

Zoe

August 14, 2019 8:00 am August 14, 2019

4 min read

1305 views

No Comments

4 min read

The Government scheme that gives you up to ?2,000 per child What is Tax-Free Childcare? It is the Government backed scheme to simply help parents with the cost of expensive…

The Government scheme that gives you up to ?2,000 per child

What is Tax-Free Childcare?

It is the Government backed scheme to simply help parents with the cost of expensive childcare.

The scheme was launched in April 2017 and if you’re eligible, you can get an extra 20% towards childcare costs. If you are eligible, you can get up to ?2,000 (?4,000 if your child is disabled) a year per child towards the cost of childcare for free.

You can even use the funds to pay towards activities like summer clubs.

How does Tax-Free Childcare work?

For every 80p you spend in childcare, the government will add 20p. This essentially gives you basic-rate tax back on your payment.

You can open a centralised account to make it easy. So for every 80p you put into the account, the government will add their 20p. You can then pay your childcare provider directly from that Tax-Free Childcare account.

With the scheme, you will be able to pay for up to ?10,000 of childcare. This works out as you would pay ?8,000 and get an extra ?2,000 per child each year! If the childcare bill reaches the government maximum, you will not be able to get any more financial support that year. However, you can still pay childcare through the tax free scheme using your centralised account, just with no additional funding. If this happens, it may be easier to pay for your childcare directly with the childcare provider.

Do I Qualify for Tax-Free Childcare?

The scheme is open to all qualifying parents.

You (and your partner) need to be in work to qualify for tax free childcare – This includes self employment.
Available to single parents
Your child must be 11 or younger.
For children with disabilities, this is up to the age of 16.
You (and your partner) must be earning at least ?131 a week. This is the equivalent of 16 hours/week at the national minimum wage for 25 year olds or over.
You’re self-employed and your income varies on a weekly basis, use your three month average to see if it meets the ?131 a week minimum.
Each parent needs to earn less than ?100,000 a year.
If you have been self-employed for less than 12 months, the minimum income requirement does not apply to you.
If you are currently not working but are due to start in the next 21 days.

If you or your partner is in work and the other is not able to, you can still be eligible, if you receive any of these benefits:

Carer’s allowance
Severe disablement allowance
Contribution- based employment and support allowance
Incapacity benefit or long-term incapacity benefit
National insurance credits

Can I qualify for Tax-Free Childcare whilst on maternity leave?

Yes! paid or unpaid statutory maternity, paternity or adoption leave is still classed as being in work. You just can not apply for the child that you are currently on leave for. You can use the scheme for older siblings.

Example of Tax-Free Childcare

Lt’s say that if your total childcare bill was ?500 a month, you would pay ?400 and the Government will pay the remaining ?100. Therefore, this would cut your ?6,000 yearly costs down to ?4,800.

If the childcare bill for one child is ?1,000 a month, you would pay ?800 and have ?200 paid for by the Government. However once the maximum amount of ?2,000 has been given by the Government, in this case, after 10 months, you will have to pay the full total.

Who is Tax-Free Childcare best for?

Self-employed or couples earning less than ?100,000 each.
Families with more than one child and high childcare costs.

How to sign up for Tax-Free Childcare

First of all you need to create an online childcare account here: Government Tax-Free Childcare site.

You will need:

20 minutes spare
National insurance number
Unique taxpayer reference (if you are self-employed)
Debit card

You will pay money in using your debit card through a standing order, or a payment from your bank account. Although both parents can use the account, only one parent can open it and you will need to decide who’s name you will use.

The government should top the money up hours later after you put money into the account. It can take up to five working days to pay the childcare provider.

No Comments

4 min read

Finance

Don’t Suffer | Get Help With Debt

Zoe

May 8, 2019 8:30 am May 8, 2019

4 min read

2149 views

No Comments

4 min read

Take control of your finances and get back on track. Today there is more help than ever to stop your debts spiralling out of control. It is frightening enough having…

Take control of your finances and get back on track. Today there is more help than ever to stop your debts spiralling out of control. It is frightening enough having debt without it getting worse.

With this advice, you will gain confidence and an understanding on the starting point to getting your debt back on track.

Where to start?

Many people will bury their head in the sand at the first sign of debt. Unfortunately, this is the worst thing to do as this will not solve your financial problems. You need to admit to yourself that you are in debt. Admitting to yourself is one of the most important steps.

One of my favourite methods is to start by writing down everything you currently owe on loans, credit cards etc. That way, you will know exactly how much debt you are in.

Prioritise payments that need to be paid off first and payments that are actually manageable. Having order to your financial situation will stop you feel like you are drowning in your problems.

If you are in a relationship, talk to your partner about your current financial situation. Off loading the pressure and working as a team on how to get back on track will give you more support.

Debt Solutions

Here are some more debt solutions on offer:

Professional help

You may have tried to speak to your creditors about your debt struggles and nothing has come from it. Seek professional help.

There are many charities out there today that want to help you. They will provide free help and advice to getting your finances under control.

You can also contact your local Citizens Advice Bureau for a manageable repayment plan and they help you discuss your situation with your creditors.

Individual Voluntary Arrangement

An Individual Voluntary Arrangement (IVA) is a formal agreement between an individual and the unsecured creditors. An insolvency practitioner or debt advisor administers it.

Why? Well, if you are struggling to sort out an arrangement to clear your current owed payments gradually through a debt repayment plan, an IVA is something to consider.

IVAs last for five years. During this time, you will pay an agreed amount to your creditors. Once that period of time ends, any remaining debt will be wiped out.

Do I Qualify For An IVA?

To obtain an IVA, you must fit within the criteria.

A minimum debt level of ?5000
A minimum of 2 credit lines e.g. 1 credit card and 1 loan.
A regular income
The ability to pay a minimum of ?90 per month into the IVA
An IVA should offer a higher return for your creditors than bankruptcy
You must live in England, Wales or N.Ireland.

You will not be able to borrow again during your IVA.

Bankruptcy

If you cannot clear your debts any other way then this option is a last resort.

You can either be forced into bankruptcy by your creditors or apply for bankruptcy yourself.

If you owe ?750 or more, a company can apply for you to be declared bankrupt. It is however, only recommended to those with unsecured debts of ?50,000 or more.

When you declare yourself as bankrupt, other assets such as your home or your car, can be used to pay the people you owe money to.

Bankruptcy lasts for around one year. The bankruptcy will be noted on your credit file for six years. Meaning you will not be able to apply for any further credit and you will be unable to get a current account that offers an over draft. Any accounts you have, your bank will freeze them and as you may not be able to open any new accounts, you will struggle make or receive payments.

This may seem daunting. But, for some people this method has been their last resort to get out of debt.

Remember to always seek professional advice before proceeding with an IVA or bankruptcy.

No Comments

3 min read

Wellness

5 Maternity Rights You Need To Know

Zoe

May 1, 2019 8:00 am May 1, 2019

3 min read

1662 views

6 Comments

3 min read

Do you know the 5 things your Employer is forbidden from doing while you are on Maternity leave? Knowing your own rights whilst planning and going on maternity leave is…

Do you know the 5 things your Employer is forbidden from doing while you are on Maternity leave?

Knowing your own rights whilst planning and going on maternity leave is critical. I?m not saying that employers try to catch you out on purpose for their own benefit. Sometimes they can make a simple, honest mistakes. But, not knowing your legal rights on maternity leave could cost you.

To put that to a close, whether your employer deliberately or unintentionally makes one of these mistakes whilst you are on maternity leave, they are breaking the law.

1. You have to tell your employer as soon as you know you are pregnant or else you will not get full maternity pay.

Wrong. You are only required to inform your employer at least 15 weeks before your due date.

Your employer is allowed to ask for your maternity leave in writing which I believe is acceptable and a good reference for you later down the line. Please do not feel you have to inform work as soon as your pregnancy is confirmed by the doctor.

2. Redundancy

Making you redundant in attempt to avoid maternity pay is wrong. You are entitled to statutory maternity pay if:

You have worked for the same employer for at least 26 weeks by the completion of the 15^th week your before your baby is due.

You were employed for part or all of the qualifying week (15^th week before the baby is due)

You earn at least an average of ?116 in the two months prior to the end of the qualifying week.

3. Give you less than 52 weeks of maternity leave

You are entitled to 52 weeks of maternity leave.

Considering that you are not classed as self-employed or a worker. The length of time you have worked for your employer should not be considered.

The 52 weeks of maternity leave is made up of the 26 weeks of ordinary maternity leave (OML), and 26 weeks of additional maternity leave (AML).

4. Deny you changing your return to work date.

You have to give your employer at least 8 weeks notice. You are allowed to change your return to work date. In some cases this cannot be helped as you may be refused nursery placements or other child care plans could fail leaving you no choice. So it is important to remember to have everything in place 8 weeks before returning.

5.Refuse to provide you with flexible working arrangements

If you opt to return to work at the end of your maternity leave your employer must make effort to accommodate you after you return to work. E.G. You may want to go back on part time hours, or have one day a week where you can work from home.

If returning to work is a struggle, having a chat with your employer may help as they may find hours to accommodate you.

Being Smart

Employers nowadays are aware of the laws and they do comply with them. A lot of employers want you to talk to them about your maternity leave concerns so you can both be in a position of understanding where you both are at.

Unfortunately there are also bad employers that don?t? follow the laws.

Use the information above to protect your rights.

If you need more information on your maternity leave rights, there is personalised guidance published by the GOV.UK website. You can find it here.

6 Comments

2 min read

Finance

Help your baby’s Grandparents benefit from childcare

Zoe

January 8, 2019 10:21 pm January 8, 2019

2 min read

1903 views

No Comments

2 min read

We are all aware of formal childcare fees becoming more and more expensive and the best cost effective decision for us can be to let the Grandparents care for your…

We are all aware of formal childcare fees becoming more and more expensive and the best cost effective decision for us can be to let the Grandparents care for your child/children whilst you have to work. They have been a vital role in many of us being able to even return back to work.

Many working grandparents have even give up their jobs in order to care for the grandchildren.

Unfortunately, this can mean losing out on their state pension rights.

So how can grandparents benefit?

Grandparents that care for children under 12 can qualify for National Insurance Credits that can top up their pension in retirement.

Grandparent Facts and Figures

Half of the UK’s 7 million, working age, grandparents in Britain have a grandchild under the age of 16.
63% of all grandparents with grandchildren under 16 help out with the childcare. Surely yours must be one of them?
1 in 5 grandmothers provide at least 10 hours a week of childcare
1 in 4 working families and 1 in 3 working mothers use grandparents for childcare
The childcare they provide is worth ?7.3 billion a year, mainly from school holiday care.

It is clear to see that the decision for grandparents to provide the care whilst parents can return to work is growing in popularity.

How the system works

Working parents can transfer their Child Benefit credits they receive and donate them to their child’s grandparents for the previous tax year.

Both parents and grandparents must apply for the credits to be transferred first. Hopefully by transferring National Insurance credits will stop grandparents missing out on building up a full state pension.

So, if the grandparents care for grandchildren under 12 years old, they can qualify for class 3 national insurance credits. The credits will count towards the grandparents qualifying years for a full state pension.

The NIC details

Retirees need to have accumulated 35 years’ worth of National Insurance Contributions (NICs) – These are the credits built up for each year they’re in work.

But, not all grandparents that are retired worked for the full 35 years.

Instead, if they are looking after a child below the age of 12, the childcare credits can top them up.

This means the grandparent can continue to build up their National Insurance Contributions as they look after their grandchild.

How to claim

To claim download this form here.

You can not claim if you have claimed for any other NIC’s that year. The back date for claiming is 2011.

No Comments