tax credit confusion

tufty22

They baffle me. I've never claimed them before so I have no idea where to start.

I'm expecting a baby in April but presently work full time. Once baby is here I'll be on maternity for 9 months (which will work out as slightly less than I get now, about £900 a month maybe), then I'll go part time (so about £600-650). My husband earns about £1200 a month.

So I know that I'm not entitled to anything but once baby is here, most (£500) of my wage will pay for childcare. I don't have anyone to do it for us so childcare is our only option.

My question is (eventually lol) is if tax credits go on your previous years earnings, will I not be able to apply until a year after I've started working part-time?

davehughes182

You will be able to apply right away and make an estimate for your current year inc aswel as give your figures for previous year. the only slight snag is that i am pretty sure CTC are not taking new applications after the end of March....so it may be Universal Credit you will have to apply for

zagfles

davehughes182 wrote: »

You will be able to apply right away and make an estimate for your current year inc aswel as give your figures for previous year. the only slight snag is that i am pretty sure CTC are not taking new applications after the end of March....so it may be Universal Credit you will have to apply for

No it's from October new claims will be to UC. You'll still be able to apply for tax credits till then (except perhaps if you live on one of the trial areas). See http://www.turn2us.org.uk/universalcredit

Icequeen99

zagfles wrote: »

No it's from October new claims will be to UC. You'll still be able to apply for tax credits till then (except perhaps if you live on one of the trial areas). See http://www.turn2us.org.uk/universalcredit

The first claims for UC will only be for those claiming out of work benefits. The TC announced cut off is April 14.

IQ

Lois_E

tufty22 wrote: »

They baffle me. I've never claimed them before so I have no idea where to start.

I'm expecting a baby in April but presently work full time. Once baby is here I'll be on maternity for 9 months (which will work out as slightly less than I get now, about £900 a month maybe), then I'll go part time (so about £600-650). My husband earns about £1200 a month.

So I know that I'm not entitled to anything but once baby is here, most (£500) of my wage will pay for childcare. I don't have anyone to do it for us so childcare is our only option.

My question is (eventually lol) is if tax credits go on your previous years earnings, will I not be able to apply until a year after I've started working part-time?

If your this year's income is less than last year's (by more than some reasonably small disregard amount) then your TCs will be assessed on your estimate of this year's income. When it's finalised after the end of this year, then you'll either get any extra that's due or have next year's TCs reduced a bit if you've been overpaid (ie if your estimate of this year's income was too low). Most people don't have income that goes down by much from one year to the next, so they get TCs assessed on last year's income (unless it's gone up by loads and loads).

zagfles

Lois_E wrote: »

If your this year's income is less than last year's (by more than some reasonably small disregard amount) then your TCs will be assessed on your estimate of this year's income. When it's finalised after the end of this year, then you'll either get any extra that's due or have next year's TCs reduced a bit if you've been overpaid (ie if your estimate of this year's income was too low). Most people don't have income that goes down by much from one year to the next, so they get TCs assessed on last year's income (unless it's gone up by loads and loads).

Yes but plus the disregard, which is £2500. For instance if income drops £2000 you're assessed on last year's income (as it's within the disregard). If it drops £3000 you're assessed on this years plus £2500. This is avoid cliff-edges.

Wail

tufty22 wrote: »

They baffle me. I've never claimed them before so I have no idea where to start.

I'm expecting a baby in April but presently work full time. Once baby is here I'll be on maternity for 9 months (which will work out as slightly less than I get now, about £900 a month maybe), then I'll go part time (so about £600-650). My husband earns about £1200 a month.

So I know that I'm not entitled to anything but once baby is here, most (£500) of my wage will pay for childcare. I don't have anyone to do it for us so childcare is our only option.

My question is (eventually lol) is if tax credits go on your previous years earnings, will I not be able to apply until a year after I've started working part-time?

Will you get Statutory Maternity Pay?

Don't panic too much. Your salary will receive a helpful push down thanks to your SMP (and what the TCO does), although your PY earnings will still have an impact.