tax credit question

dazzadub

i have ctc and wtc

we were asked for an estimate of this years earnings to calulate are entitlement.
we gave figures for last year via p60s.

this year im out of work and partner on maternity leave they asked us for forcast of this tax years potentail earnings.

we said 8.5k from april to april

we have worked out that it will be infact 7.3k for this period. does this mean are tax credits will raise next year or get a lump figure for under payments.

Murgatroyd21

You would get a payment to cover any underpayment for this year once the award is finalised, and the amount you get next year would be based on the actual amount you earned this year (assuming next year is higher). Why wouldn't you just update the expected current year amount now to realise the extra tax credits more immediately at a time when you have a new baby in the home and such a low income to support you all?

dazzadub

because i had child in another relationship and we always had letter saying we owed money as the figures were wrong, so wanted to make sure we over estimated earnings so we wouldnt owe anything.


i did benefit calulator and only works out few quid a week

Murgatroyd21

As your partner is on maternity leave, is the income details you are giving making allowance for the disregard whilst in receipt of SMP?

dazzadub

dont understand, disregard

Murgatroyd21

If your partner is on paid maternity leave, they would normally get Statutory Maternity Pay (up to about £124pw), tax credits ignores up to £100pw of that SMP, i.e. disregards it.

dazzadub

oh didnt know that, no then are earnings are based on all the smp she receives for the 9 months, then also 3 months full pay plus bonus aswell

basically

we have baby under 6 months.
i get esa
partner on maternity leave getting smp

we get 122 a week tax and child tax. do you think they have removed the first 100 of it already

Murgatroyd21

not unless you discussed this when giving your current year earnings and explained how many weeks in the current year your partner gets SMP/maternity leave. If you give me the total taxable income you expect for this year include the SMP, (and ESA if it's contribution based) when your partner started and when she'll stop maternity leave, when the baby was born, I can give you an estimate of entitlement.

dazzadub

she went on mat leave in april.
she earned £890 for april which was bonuses and comision etc. and may was her first month on smp

baby was born in may

she recived 90 percent pay of her salary which was 600 ish for 2 months i think.

she returns to work in feb 2011

i dot get any money from esa as its income based.

so its just her earnings.

dazzadub

totla earnings roughly for this taxable year will be around 7k thats all money we will get this year unless something changes.

thats smp and her earnings in april and also for feb and march 2011

earnigs for feb and march i have based on average of 800 a month

Murgatroyd21

Based on a salary of £7k, I get your daily entitlement to be £23.27, multiply this by the number of days in the year you have entitlement to get your annual amount (I'm basing the calc on your partner working less than 30 hrs pw, if 30 or more it will change the entitlement) but it works out about £162.89pw. You can calculate how many days in the period by entering the date of birth for the baby and 05/04/2011 as the end date, and tick to include the last day, in this date calculator http://www.timeanddate.com/date/duration.html.