please can you double check my maternity/tax credit calculations

sarah77

Hi,

I am trying to work out any tax credit entitlement I may get. Baby is due in july so full SMP will fall in this tax year which makes it abit easier to work out. I have just sent claim form for last year which I know will result in no entitlement but I hope to then just ring with income change when baby comes.

My calculations:

Normal annual income: £22,196.98

This tax year taking SMP:

13 wks normal pay: £5,549.18
6 wks @ 90% : £2,305.04
33 wks @ 136.78: £4513.74

Total = 12,367.74 income this tax yr

The only thing im confused about is the fact that ive read to deduct £100 pw of the 39 wks SMP?

Am I right in thinking I deduct £3900 from my total? So = £8,467.96 income.

I dont want to get it wrong and end up owing money back. The first result would mean we wouldnt be entitled to working tax credit when taking OH income into account. But with the 2nd result we would be entitled. (OH only earning 6grand self employed at the moment).

Thanks,
Confused :-)

Horseunderwater

Are you a single parent or do you have a partner as that will make a difference.
If there are 2 parents then it is the joint income and that is what you need to add up in order to get this right.
With SMP you deduct £3900 off of your gross income to get your correct earnings for the coming year, so you might not get any still if joint income is still above £26k.

sarah77

Horseunderwater wrote: »

Are you a single parent or do you have a partner as that will make a difference.
If there are 2 parents then it is the joint income and that is what you need to add up in order to get this right.
With SMP you deduct £3900 off of your gross income to get your correct earnings for the coming year, so you might not get any still if joint income is still above £26k.

It would be a joint claim.

Usual joint yearly income is approx 28,000

This year while on SMP our joint annual income will be approx 18,000

I intend on giving this amount as am estimate for the yr ahead. Wasnt sure where to deduct the £3900. Is it from last years income or from this years lower income?

Thanks for replying

Horseunderwater

This years income as you have not had the wee one yet.