Tax Credits Returning To Work After Being Mat Leave

debnlee_2

im due to go my maternity leave in 5wks , the maternity pay i get will be £103.50 a week my current wages are £114 pw, i plan on taking the full 39wks off. how does it affect my tax credits when i go back to work? do i even need to phone the tax credits to tell them im on maternity leave? i spoke to a friend of a friend who didnt really know what she was talking about and she was saying something about for every week maternity pay is claimed tax credits will take a £100 of can anyone help on this one?also i know when the baby is here ive got to phone them to tell them theres been a new addition to the family but am i right in thinking that we will get no extra money for the baby untill april next year as the claim we are in now is based on last years wages? dont know if the figures are needed but we currently get ctc of £91pw and wtc of £31 pw this is based on mine and my hubbys wages combined = around £14000 pyear. thanks in advance

kurjam

just want to say congratulations i also start maternity leave in 6 weeks, i think that you only declare £100 a week for every week we get maternity allowance / pay.
but i am sure some one will correct me if i am wrong.
with regards to tax credits i think they will add baby and correct your payments as soon as baby is born you dont have to wait till april.
good luck !!

kei_2

Basically while you are on SMP you are still classed in employment so no need to tell tax credits about this, if you choose not to go back after this period then you must make the change and end your employment.

Basically for tax credits for every week's SMP you receive you can deduct £100 per week from you're total income. So for example for yourself only £3.50 per week will be classed as income (£103.50 SMP minus £100 disregarded) during your SMP.

As for the extra child, for every child under the age of 1 tax credits will pay out an extra element (extra money) also other elements should increase based on a £14000 household income so it's within your best interests to get that child added to the claim as soon as they are born.

As for the calculation, the easiest way to look at it is your assessment is based on your previous year income unless your current year income is lower than your previous year or your current year is £25000 more than previous year income.

You could attempt to recalculate your income for this financial year, how much will you earn from 06/04/08 too 05/04/09, remember to take off £100 per week of SMP you receive or you could just leave your income estimate as the same and when you renew your claim next year you might be due an underpayment (any money tax credits may owe you) in a lump sum but take into account that this works both ways if your new estimate of income is way off you can be paid too much tax credits.

debnlee_2

thanks to kei and good luck to you to kurjam my baby is due in 8wks already have 2 girls this ones a boy i keep trying to picture a boy version of my youngest daughter and thinking .........oh my god what have i let myself in for!!!!!!