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Deducting statutory maternity pay from income for tax credits?
 
            
                
                    Blaze36                
                
                    Posts: 8 Forumite                
            
                        
            
                    Hi,
I'm expecting my first baby in May and I was wondering how I need to work out my income for tax credits. I get company maternity pay for 6 months, which includes statutory maternity pay and is equivalent to my normal wage. After the 6 months full pay I am entitled to a further 13 weeks of statutory maternity pay, then nil pay until the year is up.
I am planning to take the full year off work and as my income will be reduced, I want the claim to be based on my current year income (2010/2011). I just don't know how to deduct the SMP - I know you can deduct a certain amount from your income, but would it just be the 13 weeks of SMP I'd deduct, or the SMP included in my company maternity pay?
Thanks.
                I'm expecting my first baby in May and I was wondering how I need to work out my income for tax credits. I get company maternity pay for 6 months, which includes statutory maternity pay and is equivalent to my normal wage. After the 6 months full pay I am entitled to a further 13 weeks of statutory maternity pay, then nil pay until the year is up.
I am planning to take the full year off work and as my income will be reduced, I want the claim to be based on my current year income (2010/2011). I just don't know how to deduct the SMP - I know you can deduct a certain amount from your income, but would it just be the 13 weeks of SMP I'd deduct, or the SMP included in my company maternity pay?
Thanks.
0        
            Comments
- 
            You deduct all of it as your full pay is partly made up with SMP. In all you can dedut £100 each week for 39 weeks = £3900.0
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            Thank you. I had a feeling I could, but I wasn't sure.0
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