Claiming Tax Credits with varied income

aldredd

Hello, hope the title fits the post - wasn't sure how to word it.

My partner is due to give birth to our first child any day now (:j), and have been budgeting and saving as hard as I can since finding out.

I looked into any benefits / tax credits we might be entitled to, and reckon we will get the standard Child Benefit (about £20 p/w right?), and possibly some tax credits - although have found it tough to find out just how much we may be entitled to claim - but reckon £10-£20 p/w

My concern though, is around my previous earnings. From what I gather, tax credits are all based on your earnings from the previous full tax year. The problem though is that I spent just over two years working overseas - I was still employed under a UK contract and paid NI etc - but because of additional payments for accommodation and living expense payments, my earnings for the end of the last full tax year were around 50% higher than my actual current earnings.
I came back from overseas around 5/6 months ago (as soon after we found out we were expecting a baby as we could) so although I'm now on my 'normal' salary, even my 08/09 earnings will be very overstated.
What will happen if I go to claim tax credits - will they base it on previous earnings until I've done a full tax year on my current salary? or can they make some sort of provision for the fact that I don't earn anywhere near what I look to have earned in the past?

Thankfully, I intentionally haven't budgeted for tax credits, so I won't struggle too much without them, but would like welcome some advice on this!

Thanks for your help!


Edit:
Not sure if it makes any difference, but my partner can't claim any SMP as she wasn't working in the UK at the time of falling pregnant - or for about 18 months before hand.

[Deleted User]

You would provide you previous year income on the claim form.

If the income for the current year is lower you can provide a current year estimate for tax credits and they will recalculate your award based on the lower income but beware not under-estimate your income because you could be overpaid tax credits if you do.

They ask you to complete a declaration at the end of each year to ensure you have received and will continue to receive the correct award.