Confusion about working tax credits. Gap after maternity leave.

SammiRoyle

Hi guys, need your help...

I've just been on the phone to tax credits to sort out childcare for my son, but went through some information on maternity dates thats left me baffled ha.

Basically I finished work last year and started maternity leave on 13/03/2013, this being when my payments start. I went back to work last month on 13/01/2014.

The date my maternity pay ended would have been 18/12/13, this being 39 weeks of maternity.

Now on the phone the lady said to me that after the 18th, I wasn't working so any working tax credits I got during then and when I went back to work is an overpayment. I had no idea that I had to report it but hey that's my fault.

I'm just wondering however, My claim for actual working tax credits started on 15/04/2013, meaning that when I went back to work on 13/01/2014, the time in between equates to 39 weeks, so they have paid me exactly 39 weeks of working tax credits which is the exact amount they say they can pay while on maternity leave.

Do you think if I called back up and explained this, i'd have any chance of getting the overpayment dismissed?
If not, is there anything I can do to claim for the time they say I wasn't working?

i'm not very clued up on all of this benefits business haha.

Thanks guys

SammiRoyle

blondebubbles wrote: »

You can claim WTC for up to 39 weeks when on maternity leave. The 39 weeks is taken from the date you started maternity (no matter when you claimed tax credits). This ties in with the rules on Statutory Maternity Pay.

Where you on unpaid leave from your employer after your SMP until you went back to work?

ah okay thats fine then, my mistake.

yes i was on unpaid leave from 18/12/2013 - 13/01/2014.

SammiRoyle

exactly, i'm just glad its a short amount of time.

Thanks for your help

bll78

We're you still employed? I'm assuming it was just additional unpaid leave? If so there's rules whereby you can still get WTC if your leave is less than 4 weeks. Here is what I found copied from the HMRC website under tc manual http://www.hmrc.gov.uk/manuals/tcmanual/TCM0124280.htm
Unpaid leave isn’t considered to be qualifying remunerative work. However, a person may still be entitled to apply for WTC provided that their unpaid leave is sufficiently short that it won’t disturb their normal working pattern.
Generally, if unpaid leave doesn’t last for more than four weeks, and the person returns to work after this, entitlement to WTC wouldn’t cease. However, if the person’s unpaid leave is part of a series of unpaid leave and there are other factors which reduce the working pattern, entitlement to WTC may stop.
If unpaid leave is likely to last for more than four weeks, a person’s entitlement will be affected from the first day of their leave.
If a person’s unpaid leave was due to last for less than four weeks and they later realise that the unpaid leave will last for more than four weeks, WTC will be affected from the first day they expect their leave to last more than four weeks.
Note: This also applies when periods of unpaid leave are taken immediately before or after periods of paid leave - for example, ordinary (paid) maternity or adoption leave, paternity leave or sick leave.

bll78

bll78 wrote: »

Note: This also applies when periods of unpaid leave are taken immediately before or after periods of paid leave - for example, ordinary (paid) maternity or adoption leave, paternity leave or sick leave.

You'd have to check, but I would have thought the final note at the bottom made it clear that it being tagged onto the end of maternity leave was fine

Icequeen99

blondebubbles wrote: »

I think the reason why that doesn't guidance isn't often applicable is that there is a difference with being on unpaid leave and unpaid maternity leave.

It depends on what the circumstances are. If the maternity leave was finished then this would be unpaid leave. If it was still maternity then it is unpaid maternity so doesn't qualify.

The wording in the manual seems to suggest that this does apply immediately after paid maternity leave and I can't see that there is any distinction between unpaid leave and unpaid maternity leave. There is no mention that there has to be a specific reason.

Have you a link to anything that confirms there is a difference in treatment between unpaid leave and unpaid maternity leave?

OP - it would be worth appealing and quoting this guidance.

IQ

Icequeen99

blondebubbles wrote: »

Only internal I'm afraid. Nothing I can post here but I have seen this a number of times.

There are many claimants in this situation because maternity leave can be taken for 52 weeks but only paid for 39.

If the claimant took 39 weeks maternity leave then annual leave was taken (whether it be unpaid or paid), the reason for the leave would no longer be maternity.

If the maternity leave continued unpaid then the maternity guidance would continue to be used and using the 39 weeks would be correct.

If the OP was to have the employer record the maternity leave as ending 18/12/13 then unpaid annual leave until 13/01/14 then they would qualify under the guidance posted.

Then I think it would still be open to challenge at Tribunal. Internal guidance is no good to claimants.

The same argument could be made - that essentially the extra 4 weeks did not disrupt the normal working pattern. This hasn't anything to do with why the leave was taken.

OP - i would suggest you appeal, you have nothing to lose expect a bit of time by doing so.

IQ

Icequeen99

blondebubbles wrote: »

I know what you mean, I'm not saying there aren't grounds for appeal but as you'll know the appeal process can be time consuming. Especially given it's only for 3 and a half weeks of payments. I was just making a suggestion which might make it quicker and easier.

Yes i understand your suggestion. I need to think about it some more! Could there be negatives to doing it, for example non-cash benefits have to maintained through the full 52 weeks of maternity leave but would the same apply to just unpaid leave? And any other protections?

Interesting question!

IQ