Tax Credit Calculation

lucy_w86

I have just applied for CTC and as its my first claim, I input all the relevant info on the form. This included whether I was working, my child's details, how much income I made in 2009/2010 etc.... no-where on the form did it ask for information on my income for 2010/2011. I was told this info will be given to CTC after my initial claim is made.

When I get my letter back to let me know my entitlement, I assume I will need to contact them and let them know that for 2010/2011, I no longer work. I went on maternity leave on the 2nd Aug and got full pay up until the 27th Sept and then I will be on SMP. Therefore, my income for 2010/2011 is lower than my income for 2009/2010. I will know my year to date earnings when I get my Sept pay slip but how do I calculate the rest of the working years earnings?

It will all be SMP so I can calculate the weekly figure by how many weeks I am getting it for but I keep hearing about deducting £100 if you are on SMP.

Can someone explain as I dont want to mess up my figures?

Murgatroyd21

Calculate your total taxable income for 2010/11 (including maternity pay), count how many weeks paid maternity leave fell within the current year, usually a maximum of 39. If SMP is over £100pw, multiply the number of paid maternity weeks in the current year by £100 to give the disregard figure. If SMP is less than £100pw, disregard all of it.

If you get SMA instead of SMP, disregard it all.

lucy_w86

Murgatroyd21 wrote: »

Calculate your total taxable income for 2010/11 (including maternity pay), count how many weeks paid maternity leave fell within the current year, usually a maximum of 39. If SMP is over £100pw, multiply the number of paid maternity weeks in the current year by £100 to give the disregard figure. If SMP is less than £100pw, disregard all of it.

If you get SMA instead of SMP, disregard it all.

Ok, so when I contact CTC about my new circumstances, I need to do the following.

Calculate my income up until end of Sept based on my wage slip and year to date income.
Calculate how much income I will make between now and the end of the working year.
Lets say this figure is about £14,000 (it will probably be a little less than this).
I am taking 27 weeks SMP so I need to do £100 x 27 = £2,700
I need to then do £14,000 - £2,700 = £11,300

So my estimated income for 2010/2011 is £11,300

Is this correct?

Murgatroyd21

Call them and tell them your estimate for this year is £11300!

lucy_w86

Murgatroyd21 wrote: »

Call them and tell them your estimate for this year is £11300!

Will do.
Thanks

System

make sure you overestimate rather than underestimate to avoid having an overpayment at the end of the year.

lucy_w86

Pam17 wrote: »

make sure you overestimate rather than underestimate to avoid having an overpayment at the end of the year.

Will do - thanks