Tax credits / maternity leave

ladysummerisle

I’m just doing some calculations now as I’m due to go on maternity leave in May. I’ve got an open claim for tax credits (currently CTC only) from when I last went on maternity leave. I’d planned on updating my forecast income for the next financial year but I’ve remembered that last time, when I took unpaid leave (after 39 weeks), working tax credit stopped. I was wondering therefore whether a reduction in hours for this period would trigger a switch to universal credit? 

Grateful for any advice.

Alice_Holt

https://www.gov.uk/tax-credits-if-you-have-baby

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/entitlement/wtc-elements/#Maternity, Paternity and Adoption Leave

Indicates that you can stay on TC (but note the time limit to 39 weeks). 
If you make an application for UC yourself, that will end your TC claim.
Will you be in receipt of maternity allowance or statutory maternity pay?

calcotti

ladysummerisle said: I’ve got an open claim for tax credits (currently CTC only) ... (after 39 weeks), working tax credit stopped. 

Not quite following this. Do you currently qualify for Working Tax Credits or not?
Do you meant that your Tax Credits claim is a WTC and CTC calculation but atet you only receive CTC because your income reduces your WTC to nil?
If so when entitlement to WTC ends you would still have an open Tax Credit claim but it would be calculated on the basis of CTC only.

ladysummerisle

Thank you. I’ll be on SMP with occupational pay for some of that. I’d not voluntarily move to UC so that’s really what I’m wondering, whether it would be triggered. I’d factored in the non-payment of WTC post 39 weeks (about a month of which would be at the end of 2021/22). I’m just trying to work out whether I can afford to take the full year off or not. When I’m back at work I’ll be likely be on the threshold for qualifying for tax credits. 

ladysummerisle

calcotti said:

ladysummerisle said: I’ve got an open claim for tax credits (currently CTC only) ... (after 39 weeks), working tax credit stopped. 

Not quite following this. Do you currently qualify for Working Tax Credits or not?
Do you meant that your Tax Credits claim is a WTC and CTC calculation but atet you only receive CTC because your income reduces your WTC to nil?
If so when entitlement to WTC ends you would still have an open Tax Credit claim but it would be calculated on the basis of CTC only.

Yes - at the moment we qualify for a tiny amount of CTC but with the drop in income for maternity leave, this would likely go up and calculations show we’d receive both WTC and CTC. Currently I work 35 hours so after 39 weeks of maternity leave this would presumably change to 0 hours whilst I was on the unpaid last 13 weeks of maternity leave. This is what happened when I claimed during 2017/18. It’s whether this drop in hours would trigger a transition to universal credit or whether I could remain on tax credits and see out my full maternity leave? My husband is the stay at home parent. 

calcotti

The only thing that triggers a move to UC is if you claim it.