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  • FIRST POST
    • nayfeee
    • By nayfeee 14th Mar 17, 4:44 PM
    • 39Posts
    • 4Thanks
    nayfeee
    Is there any financial help available?
    • #1
    • 14th Mar 17, 4:44 PM
    Is there any financial help available? 14th Mar 17 at 4:44 PM
    Hello everyone.

    I just want to ask if we're missing anything here. From what we have found out, we're not entitled to any financial assistance whilst my wife is on maternity leave and want to be sure we're correct as not to put ourselves into a pinch unnecessarily.

    My wife is currently in full time employment, earning approximately 20k basic salary with a non-guaranteed bonus some months. She has been there for several years.

    I am currently working for my own company, started as a side project whilst I was working but now attempting to make a go of it as a full time thing after being made redundant early last year. I will have taken a salary of 11k and dividends of 4k by the end of this tax year.

    In the 2015/2016 tax year my wife earned approximately 20k.

    In the 2015/2016 tax year I was working and had started my business, so had a salary of approx. 24k and had taken dividends of around 10k from my company.

    When my wife leaves work in June, she will receive 90% of her basic salary for 6 weeks, and then statutory maternity pay of roughly 140 per week which is less than half of her current basic take home pay (our plan is for her to be out of work for as short of a period as possible due to this). I will be taking my 11k salary from my business.

    From what we have read and found out from the calculators we don't qualify for child tax credits, even though for the 2017/2018 tax year I think we will end well below the income threshold.

    Are we only entitled to receive child benefit at roughly 90 per month to help top up her pay whilst off work?

    Thank you for any assistance or clarification
Page 1
    • Darksparkle
    • By Darksparkle 14th Mar 17, 5:41 PM
    • 4,183 Posts
    • 2,670 Thanks
    Darksparkle
    • #2
    • 14th Mar 17, 5:41 PM
    • #2
    • 14th Mar 17, 5:41 PM
    What is the actual income for 206/17 and expected 2017/18 household income? 2015/16 won't be relevant if claiming in the 2017/18 tax year.
    Last edited by Darksparkle; 14-03-2017 at 5:43 PM.
    • Dazed and confused
    • By Dazed and confused 14th Mar 17, 5:51 PM
    • 1,282 Posts
    • 517 Thanks
    Dazed and confused
    • #3
    • 14th Mar 17, 5:51 PM
    • #3
    • 14th Mar 17, 5:51 PM
    If you have told us about all of your taxable income (often not the case on these threads ) then income in 2016:17 is going to be 15000 with (in most circumstances) no tax to pay.

    Had you taken 15000 but as salary of 10000 and dividends of 5000 you would have been able to apply for the marriage allowance and saved your wife 220 in tax.

    You would have had a small tax liability of 20 but as a couple you would be 200 better off.

    Possibly worth discussing with your accountant to see why your income is split as it is - there may well be a much better reason to have the extra salary and lower dividend which outweighs the potential tax saving but only they can explain this to you.
    • nayfeee
    • By nayfeee 14th Mar 17, 6:40 PM
    • 39 Posts
    • 4 Thanks
    nayfeee
    • #4
    • 14th Mar 17, 6:40 PM
    • #4
    • 14th Mar 17, 6:40 PM
    Hi there,

    Thanks for replying guys.

    Sorry if I go a bit off here, a lot of figures floating round in my head.

    For 2016/2017 it will be (roughly but only slightly roughly):

    15k for me (11k salary 4k dividends)
    20-25k for my wife (20k basic + bonus that I don't have to hand)

    For 2017/2018 it's slightly harder to work out as A. I won't know my total dividend until later in the year and B. my wife will be on mat leave for some of this year.

    As a rough estimate I would say we can assume again 15k for me.

    My wife will be receiving a full pay at the end of April, May & June (approx 5k) + 90% in July (1.5k) and 90% for 2 weeks in August + 2 weeks mat pay (1k). Then she'll be on statutory mat pay for however long she has off, does that count as income towards calculations?

    If she has 9 months mat leave that will take us through to the end of the tax year from when she leaves (end June/start July I believe official date once hols used).

    Total will be 22.5k ish plus any statutory maternity pay she receives.
    • Darksparkle
    • By Darksparkle 14th Mar 17, 7:13 PM
    • 4,183 Posts
    • 2,670 Thanks
    Darksparkle
    • #5
    • 14th Mar 17, 7:13 PM
    • #5
    • 14th Mar 17, 7:13 PM
    The first 100 per week of SMP is not included for tax credit purposes.

    The household income for 2017/18 would need to be less than 23,500 to receive any tax credits. Sounds like you may be just over the.
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