child tax credits worries

loobyloo0302

hi

I had my new child tax credits award through the post this morning after giving birth to our third child early december and am now slightly worried as it seems quite high I will stress that this letter was sent out about 2weeks ago but due to the weather, we haven't recieved any post.

This is where it gets confusing and I hope I give all details correctly. Last year, our joint income was £26257. This year, I am really confused. I've just done a few calculations this morning and my partners income at the end of the year will be £22484. Now I've had trouble with my employer with my maternity and so haven't recieved a penny from anywhere since 4th december (my last paid week) I was put on forced maternity leave due to being off sick 4 weeks before my due date so they are saying my maternity leave began 15th of November. For about 7 weeks before the 4th december I recieved statutory sick pay. For all this time I have been awaiting forms from my employer to enable me to apply for maternity allowance.

My earnings from my employer up to the 4th december is £4138. Now obviously, already this totals to more than we earned last year by £400. I haven't a clue how much I will recieve maternity allowance wise (my average weekly earnings are stated as £125) but I'm worried as I was told that you do not get the £100 disreguard per week when on maternity allowance for tax credit purposes. Also, if I do get the maternity allowance, it will be back paid, so will this also cause an issue with tax credits? I can't stop worrying that we are being overpaid at £93 per week because of these reasons (I know we shouldn't, but I'm using this money to get us through the week as my partners paying all bills, private rent, council tax etc and paying his ex wife csa and paying off the debts from their marriage, so we're in quite a mess.. an overpayment with tax credits would really land us in trouble )

Indie_Kid

Have you taken into account that, you get extra (£545 I think?) money for the first year?

loobyloo0302

sh1305 wrote: »

Have you taken into account that, you get extra (£545 I think?) money for the first year?

Yes, the week baby turns one, our award decreases to £79

Oh, as an edit I was on maternity leave with my second child until 26th july 2009 (got caught with 3rd) doesthat make a difference also?

mitchaa

Your current earnings are irrelevant, your £26257 figure for 08/09 is what your current award is based upon.

Your tax credit threshold will have increased due to your 3rd child, meaning that along with the addition of a 3rd child element of CTC in addition to the baby element you will be receiving your child tax credit award for your other 2 at an increased level.

So I wouldn't worry about that.

You do not need to estimate anything at the moment, after the FY tax year, you will be sent a renewal form where you will take both sets of earnings as they are shown on your P60's and declare them. Your award will then be reshuffled a little and you will start to receive the correct award a month or 2 later.

However, it is possible to speed this up by estimating your 09/10 income just now in order to get your award come April very close, you have already worked out £22484+£4138.

Considering earnings for Dec/Jan/Feb and March on top of this will give you the figure that you need to estimate. Usually, you would deduct the 1st £100pw and anything thereafter declare if you are on maternity. I calculate approx 17wks from dec 4th to April, so it would be an extra £2.1k or so if you have to declare the full £125 or £425 or so if not.

If it were me I would declare £22484+£4138+£2.1k just to be on the safe side and if its any lower then you'll get an extra payment somewhere. Any higher and you'll get overpaid a little.

The estimate is just to make things run more smoothly come April so you dont see any big sudden jumps or dips. I wouldn't worry about it.

loobyloo0302

mitchaa wrote: »

Your current earnings are irrelevant, your £26257 figure for 08/09 is what your current award is based upon.

Your tax credit threshold will have increased due to your 3rd child, meaning that along with the addition of a 3rd child element of CTC in addition to the baby element you will be receiving your child tax credit award for your other 2 at an increased level.

So I wouldn't worry about that.

You do not need to estimate anything at the moment, after the FY tax year, you will be sent a renewal form where you will take both sets of earnings as they are shown on your P60's and declare them. Your award will then be reshuffled a little and you will start to receive the correct award a month or 2 later.

However, it is possible to speed this up by estimating your 09/10 income just now in order to get your award come April very close, you have already worked out £22484+£4138.

Considering earnings for Dec/Jan/Feb and March on top of this will give you the figure that you need to estimate. Usually, you would deduct the 1st £100pw and anything thereafter declare if you are on maternity. I calculate approx 17wks from dec 4th to April, so it would be an extra £2.1k or so if you have to declare the full £125 or £425 or so if not.

If it were me I would declare £22484+£4138+£2.1k just to be on the safe side and if its any lower then you'll get an extra payment somewhere. Any higher and you'll get overpaid a little.

The estimate is just to make things run more smoothly come April so you dont see any big sudden jumps or dips. I wouldn't worry about it.

Hi! Thank you so much! Are you able to shed any light as to whether I count the rest of my second maternity leave (was also on maternity from october2008 until july 2009) as so far only part of that was taken into account for that tax year (october until april so 6 of the 9 paid months)

mitchaa

loobyloo0302 wrote: »

Hi! Thank you so much! Are you able to shed any light as to whether I count the rest of my second maternity leave (was also on maternity from october2008 until july 2009) as so far only part of that was taken into account for that tax year (october until april so 6 of the 9 paid months)

Oct 2008 to April 2009 is irrelevant.

April 2009 to July 2009 is relevant IF you were receiving SMP. I calculate that around 17-18wks or so depending on when you went back in July. If you were in receipt of SMP (and not holiday pay as usually at the end of 9mths SMP you will then start to use holiday entitlement accrued during your 9mths off) then you should be able to deduct £1700 from your £4138 figure.

I'd monitor this closely and find out for definite when your SMP stopped so you know how many weeks between April 09 and July 09 that you can knock off.

Im not sure what happens with maternity allowance, I think you are right, you cant deduct £100?

Were you on SMP for baby 2 and MA for baby 3?

loobyloo0302

I bit the bullet and called them! He was very helpful!He's counted the three months of maternity leave and has also accounted for what may possibly be how much maternity allowance I'll recieve and how long for and he mentioned a figure of £425 for maternity allowance (assuming I'll get the full amount)

for my second baby I was on SMP oh and my last paid week of SMP was the week of the 26th july (working weeks are sunday to sunday) thanks very much for your help!! Really appreciate it!

And as a second edit, as MA is paid by DWP, he's noted down that employment has ended, even though I'm still employed if that makes sense(he mentioned because I'm no longer paid by employer)

mitchaa

loobyloo0302 wrote: »

I bit the bullet and called them! He was very helpful!He's counted the three months of maternity leave and has also accounted for what may possibly be how much maternity allowance I'll recieve and how long for and he mentioned a figure of £425 for maternity allowance (assuming I'll get the full amount)

for my second baby I was on SMP

So it should be £4138 minus SMP for 3mths (April/May/June/July) which looks like £1700 to me leaving £2438 to declare + obviously your earnings between Dec 09 and April 10

If you went back to work in July, did you not increase your maternity leave by using your built up annual leave that you had accrued whilst you were off? This is the point I was getting at.

loobyloo0302

mitchaa wrote: »

So it should be £4138 minus SMP for 3mths (April/May/June 09) which looks like £1700 to me leaving £2438 to declare + obviously your earnings between Dec 09 and April 10

If you went back to work in July, did you not increase your maternity leave by using your built up annual leave that you had accrued whilst you were off? This is the point I was getting at.

Yes, looking at my statement of earnings now, I was paid 3 weeks worth of holiday pay immediately after SMP ceased

loobyloo0302

Your exactly right! He mentioned an estimate of just over £3000 I think (can't quite remember) Thanks so very much!!

mitchaa

So 17 wks from April 1st to 26th July.

That's a handy deduction

I cant believe you managed a 3rd straight after haha. Must have been a surprise