Working Tax Credit + Maternity Leave

newbie09

Can anyone tell me if I am entitled to working tax credits whilst on maternity leave from my work? I am only asking as I have been told that I am still classified as working whilst on this leave... I am totally confused with the tax credit system, I do however get Child Tax Credit for my 8month old. I shall be returning to work in Jan 2011.

DX2

Maternity leave - when you can claim tax credits

You count as being in work for the first 26 weeks of ordinary maternity leave, and the first 13 weeks of any additional maternity leave - a total of 39 weeks.
Therefore you can continue to get Working Tax Credit as long as you worked 16 or 30 hours a week - whichever applied - immediately before you went on leave.
If you go back to work immediately after your first 39 weeks of maternity leave are over, you can continue to claim Working Tax Credit.

Maternity leave - when you're not entitled to claim

Any further leave - paid or unpaid - you take after the first 39 weeks doesn't count as being in work. So you may not be able to claim or continue receiving Working Tax Credit for this period unless you have a partner who is working 16 hours a week or more.
http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/maternity-adoption.htm

Murgatroyd21

DX2 wrote: »

Maternity leave - when you can claim tax credits

You count as being in work for the first 26 weeks of ordinary maternity leave, and the first 13 weeks of any additional maternity leave - a total of 39 weeks.
Therefore you can continue to get Working Tax Credit as long as you worked 16 or 30 hours a week - whichever applied - immediately before you went on leave.
If you go back to work immediately after your first 39 weeks of maternity leave are over, you can continue to claim Working Tax Credit.

Maternity leave - when you're not entitled to claim

Any further leave - paid or unpaid - you take after the first 39 weeks doesn't count as being in work. So you may not be able to claim or continue receiving Working Tax Credit for this period unless you have a partner who is working 16 hours a week or more.
http://www.hmrc.gov.uk/taxcredits/keep-up-to-date/changes-affect/family-change/maternity-adoption.htm

I think that's an anomaly in the guidance. If you attach paid annual leave to maternity leave it still normally constitutes being in remunerative employment therefore qualifying for wtc. Too, it is phrased in a wide ranging manner that could be read that any leave after maternity means no wtc! How long after? I will query this further, as I've noticed a number of errors in the guidance on the website and this looks like another. It's normally only unpaid maternity leave (the last 3 months of the 12 that can be taken) that doesn't count as being in employment.

DX2

Murgatroyd21 wrote: »

I will query this further, as I've noticed a number of errors in the guidance on the website and this looks like another.

There does seem to be several disputes regarding the HMRC guidance, and if they can't get it right how do they expect "Joe bloggs" to. Not having a go at you btw, but IIRC there have been problems re disabled working tax credits guidance and now you say maternity guidance.