Help on working out Maternity Benefits

mitchaa

LauraFoster wrote: »

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

Nope, afraid not as earnings of £20k+ per annum in regards to your partner will make him ineligible for working tax credits and the £2085 child element of child tax credits.

You will have to declare a 09/10 income directly from your P60's so if your partner has earned £20k and you have earned £19k then you will have to declare £39k. However, you can phone up and register a change in circumstances and that you do not expect to earn your £19k in 10/11 but you must give them an estimated figure of what you are both liekely to earn for that year. I'd imagine his will probably rise to £21k or so and yours will drop down to around £5-6k?

At £26-27k I would probably suspect that you will only get the basic CTC award of £545 per annum (Family element) + £545 per annum (baby element up until 12mths) I doubt you will qualify for any of the £2085 child element.

brunettegirl

Thank you - I find the whole thing very confusing...... Baby is due in June and Im not returning to work or at least not for the first 12 months after the baby is born. Does it make any difference that we both have our own houses? He hasn't moved in with me yet, but is hoping too before the baby comes.
I do currently get working tax credits as my income last year was so low, do I still get them when I start maternity leave?

flea72

im getting confused now, is the OP posting under two different names, or are two people asking similar questions on the same thread?

F

mitchaa

No idea, I think brunettegirl should change her name to blondegirl:D

Her response certainly indicates that it is the same girl, but then she would never have been entitled to WTC on £19k so i dont know

brunettegirl

sorry guys I jumped on here and asked a question should of started my own - but I had the same question. Sorry

seasidegirl80

brunettegirl wrote: »

Thank you - I find the whole thing very confusing...... Baby is due in June and Im not returning to work or at least not for the first 12 months after the baby is born. Does it make any difference that we both have our own houses? He hasn't moved in with me yet, but is hoping too before the baby comes.
I do currently get working tax credits as my income last year was so low, do I still get them when I start maternity leave?

I am currently on Maternity leave, I still recieve working Tax credits as I am returning to work in April, im pretty sure you can claim them as long as you do return to work, if you are not planning on going back to work after the baby is born then you will not recieve them!

If you do move in with your partner then your joint income might be too high for you to recieve them.

karenx

brunettegirl wrote: »

Thank you - I find the whole thing very confusing...... Baby is due in June and Im not returning to work or at least not for the first 12 months after the baby is born. Does it make any difference that we both have our own houses? He hasn't moved in with me yet, but is hoping too before the baby comes.
I do currently get working tax credits as my income last year was so low, do I still get them when I start maternity leave?

You will only get WTC paid for 39 weeks I think it is after baby is born, as thats how long you will get maternity pay. So if you take additional unpaid leave you will have to notify tax credits so they can stop your WTC. Thats if you havnt moved in with your partner. If you dont plan on going back to work at all as soon as you have had your baby your WTC will stop aswell as your not working or planning on going back.
If you move in with your partner both your salerys combined are too high for WTC. So whatever happens basically you wont continue to recieve them unless you dont live with your partner and go back to work as soon as your maternity leave has finished

nelster

Another person with similar questions to the OP here. Well done to all who take the time to work these things out for us.

We have the situation where my baby was born in October 2009.

If I want to claim CTC I need to send them details of earnings for 08/09, which combined will be 69500, way out the ball park for anything and from speaking to midwives / health visitor we were told it’s a waste of time applying.

However my wife is now about to enter a phase where she is on the bare minimum SMP, however for purposes of 09/10 tax year I still think we will be around 60000 because of the date of birth and some good support from her employer. However my child is under 1 year old so there may be some miniscule amount of money available.

At a rough estimate, in year 10/11 our combined income will be less than 50000, my wife will be unpaid for a few months and again our baby will be under 1 year old for around 6 months of this tax year.

When should I send forms into HMRC, unfortunately I was on the phone to them yesterday and got my tax years mixed up, the estimates I gave the girl implied my 50000 for 10/11 as the estimate for this year 09/10

Do I need to wait until after April to apply as having 3 sets of figures (69.5k for 08/09, 60k for 09/10 and 50k for 10/11) is only going to confuse the issue ?

But why should people wait until their child is nearly 1 year old before being able to give them the figures that apply now ?

Any advice appreciated.

karenx

You will harly get anything for the rest of the tax year I imagine, you will only get the basic rate which is £545 plus baby element of £545 per year but thats for the year, as theres only about 12 weeks left of the tax year that works out to be about £255. And after baby is 1 the amount goes down to £545 per year so about £10 per week.

nelster

Should I really put through 3 years of figures or just the 1st two years and then do 10/11 when the new tax year starts ?

Thanks for the first reply, I don't expect much, the girl on the phoner said a drop to 50k = £21, but that was on the assumption that the drop to 50k was 09/10 instead of 10/11

I assume it's not backdated to DOB either ?