taxcredits/maternity pay/rewneal

k2020

hi i rang up taxcredits yesterday to fine out what i have to do as i went on materniry leave end of feb and got my first ma in march last year . the man explained to me that when i do my renewal in april i have to take 100 pound of i didnt understand what he ment can somone explain to me what he meant i have returned back to work now but didnt understand what he meant by take 100 pound off is that 100 pound the maternitay allowance payments then take it away from the amount i earned from work i am so confused . also since he mentioned that i ddidnt let them know in march before the new taxcredit in april that i got MA for march do i have to declar that they just went off what i earned from work that year.        

calcotti

Tax Credits are based on your previous year income. If you have keen on maternity leave your income has presumably dropped. If it has dropped by more than £2500 for the year the current year Tax credits should be calculated on this years income not last years. Next years TC will be based on this year but if you think your income next year will increase by £2500 you need to tell them because they will then calculate on next year instead.

I don’t know what he meant by taking £100 off the MA. MA is not taxable and I would therefore expect MA to be ignored as income for TC but hopefully some more knowledgeable posters will be able to comment.

k2020

Do I have to add what I earned from Work and maternity together and then give them the total ? What was the man saying about taking off 100 pound for every week I was off ? Can you explain that as I’m still confused on what amount I have to tell rhem
in April 

Alice_Holt

k2020 said:

Do I have to add what I earned from Work and maternity together and then give them the total ? What was the man saying about taking off 100 pound for every week I was off ? Can you explain that as I’m still confused on what amount I have to tell rhem
in April 

       MA is not a taxable benefit, so you would not add it to your work earnings for Tax Credit reporting:

https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/social-security-income/

And - 
  "Maternity Allowance will not affect your tax credits..."
https://www.gov.uk/maternity-allowance/what-youll-get


I have no idea about the £100 a week (unless he was referring to your MA amount), I suggest you ring them again to clarify this and the amount of income to declare (if you are still confused after reading the first link which details reportable income for TC).

k2020

Ok I will ring them again to find out but what your saying is I don’t have to declare my MA so they just go by what I’ve earned from work for that year , 

Just 1 more question I am now paying into a work pension so do I have tell them what I earn before then pension amount gets taken out or after ? As when I log into my online account my mangers has told HMRC what I earn before the pension gets taken out and info you know about pensions and tax credits please thank you 

Alice_Holt

Have a look at the Pension contribution para @:
https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/calculating-tax-credits-income/

You may need to talk to your employer to check if the pension contribution is on a 'gross pay basis' or a 'net pay basis'

bigbill

The first £100 of Statutory Maternity pay is ignored by Tax Credits they will have thought you were getting this.