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Tax Credits

Quick question regarding tax credit whilst on maternity leave.

If tax credits are based on income when I'm in the last few months of maternity leave i'll only be earning the stat maternity pay something like £123. per week do tax credits change during this time or stay the same? It's a massive cut in my current wages and I can't afford to have anymore than six months off due to the wage decrease.

Many Thanks

Comments

  • jfke
    jfke Posts: 54 Forumite
    Your Tax credit entitlement for the current tax year will remain unchanged as it is based on the previous years earnings. Any lesser amount of income earned in the current tax year will have a positive effect on the calculation for the coming tax year.

    Hope that's clear!
  • Thank you, I'll give them a call later today.
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