Help on working out Maternity Benefits

LauraFoster

Im expecting my first baby in May and im trying to work out what benefits i'll be entitled too when on SMP. I've been looking at the Child Tax Credits and Working tax credits and getting a bit confused so hopefully someone will be able to clarify things for me a little.

For Information Hubby works 37 hours per week and earns £20100 per year before tax. We are houseowners (mortgage) with no other taxable income.

I understand there are different elements and from what i can see i am entitled to the following -

Child Tax Credits -
Family (As our household income is less than £50k) = £545
Family - Baby Addition = £545
Child - £2085

Working Tax Credits
Basic - £1800
30-Hour - £735

All of that adds up to £5710 or £109 per week?

Does that sound about right? Just seems alot better than i was expecting

karenx

you don't mention your income?

LauraFoster

Im currently on £19,100.

I didnt mention my income because i will be on Statuatory Maternity Pay after the first 6 weeks.

elle_gee

Are you taking into account the "How your tax credits are reduced" section of here?

Our income was me=£20k and OH=£25k and we only get £1090 this year, reducing to £545 when DS is one. We get none of the Child element, and no WTC either.

flea72

joint annual income less threshold of £6420 = excess income

max tax credit = £545+£545+£2235+£1890+£1890+£775+80%childcare)

max tax credit less 39% of excess income = award entitlement

dont know if you have a partner, but you have to include their income too, if you live with them

however, if based on just your income of £19k, then you would get about £1200 a year in CTC - but depending on how much mat leave you take this will affect the figures (you disregard £100/wk of your SMP for tax credit purposes - so your income could look alot less)

F

karenx

flea72 wrote: »

joint annual income less threshold of £6420 = excess income

max tax credit = £545+£545+£2235+£1890+£1890+£775+80%childcare)

max tax credit less 39% of excess income = award entitlement

dont know if you have a partner, but you have to include their income too, if you live with them

however, if based on just your income of £19k, then you would get about £1200 a year in CTC - but depending on how much mat leave you take this will affect the figures (you disregard £100/wk of your SMP for tax credit purposes - so your income could look alot less)

F

From first post- partner earns £20100 PA

LauraFoster

If i work it out based on my current salary of £19k plus my partners income of £20k it looks like i wont get much at all - Just the £1090 of CTC a year.

My company only pay me full rate for 6 weeks, after that its down to Stat Mat pay. So i wont get any extra when my pay is reduced?

Even though i've managed to put away quite a bit for my mat leave looks like i'll be going back to work alot quicker than i would like if thats the case.

karenx

Try inputting your details onto entitledto as if the baby is born and it will give you a rough estimate, then again as if the baby was 1. See if you would be entitled to any WTC. Once baby is one you dont get the baby element so it would just be the £545 per year of CTC

brunettegirl

How do i work out how much we will get? Im confused with entitled to. I start mat leave in March, my income last year was 15,500 my partner income 21,000 on average each year. Entitled too says I get £38 a week child tax credit and £20 child benefit - this seems really low, am I doing something wrong?

loobyloo0302

brunettegirl wrote: »

How do i work out how much we will get? Im confused with entitled to. I start mat leave in March, my income last year was 15,500 my partner income 21,000 on average each year. Entitled too says I get £38 a week child tax credit and £20 child benefit - this seems really low, am I doing something wrong?

That's a lot considering your household income! When I had our first, our joint was 31k and we got around £21 when he was under 1, then the £10 rate after his first birthday.

flea72

brunettegirl wrote: »

How do i work out how much we will get? Im confused with entitled to. I start mat leave in March, my income last year was 15,500 my partner income 21,000 on average each year. Entitled too says I get £38 a week child tax credit and £20 child benefit - this seems really low, am I doing something wrong?

to get onto the tax credits system, they need defined figures to work from - so when you first apply, they base it on the previous years P60 figures, as tbh most peoples circumstances dont change that greatly from year to year

in your case, you will apply using figures from tax year 09/10 (unless baby arrives early). then once that has all been set, you contact them again to notify a change of circumstances, in that you are now on mat leave, and your income has dropped - most people can work out a rough income for the mat leave to give the tax credits dept, as its basically your 6wks 90% pay, plus £23 for each week you take mat leave, plus any income you earn once you return to work within this current tax year

your figures should be quite easy, seeing as baby is due early in the tax year, so if you have a rough idea on when you plan to return to work, and how much you would earn between then and next april, it should all tie up quite neatly

however, even based on just your OHs income you would only get slightly above basic CTC of £545 a year (double for first year of babys life), so £20 a month, dropping to £10 once baby turns one

so dont expect much financial help, other than the bare minimums

F