Advice on tax credits whilst on SMP

Helstar75

Hello
Hope someone can answer this for me before I call them, but I have just finished being paid SMP pay. I am currenly still on Mat leave but for the next 3 months left of my leave is unpaid.

I am just wondering if I should let the tax credits office know yet as Im not actually working although I am employed, would this reduce my working tax credit element. I already am losing a SMP I cant afford to lose anymore money. Although my patner is Self-employed but our joint income will go down now.
Also it is difficult for me to return to work early as have PND and I am just getting better and I feel if I go back to work early it might make it worse again.

Hope this makes sense.

Ithaca29

If I were you, I would definitely inform the TCO as you are not entited to WTC even if you are employed while on unpaid mat leave. If you do not inform them, you will be subject to overpayment and IMO, that would make you more stressed which you don't need at this stage.

I had PND so can understand a lot of your concerns and you've done well to get this far

Good luck,
Ithaca

Lip_Stick

Hi there

You shouldn't get WTC as you're not in renumerative employment, i.e. being paid.

I had a problem during the last 3 months of my maternity leave. Tax credits were saying I was entitled to it, income support said I wasn't. When I contacted TC again after speaking to IS, the TC advisor told me again, I was entitled to it. When I told her what IS had said, she went to speak to someone else, and then told me that I wasn't entitled for it after all.

Murgatroyd21

You should notify tax credits you are no longer in paid employment. The effect on your entitlement will depend on how many hours your partner works. If they work more than 30hrs pw the only change would be removal of entitlement to claim childcare, if they work less than 30 and it was your hours that helped earn the 30 hour wtc entitlement then that will reduce. As long as you calculated your current year income to allow for the maternity disregard and the period of no income from yourself your award should be calculated accordingly.