Changes to tax credits when on maternity

[babyblog]

Hi,

Does anyone know-when i gave my income details for 08-09 i gave the amount before tax, not my take home isw that right?

Now i know my tax credits are based on that years earnings but now im on mat leave my income has reduced significantly. Do they send everyone a renewal pack in April? Wjhen they look at my 09-10 income will they give me extra money as it is less than it was last year? Also, this year i will get even less than last so when do i give them this years estimated income? I find it all so confusing!

 

[cheekybint]

Hi babyblog

Firstly they need to know your income before tax.

When it comes to this year's claim, they'll send you a renewal pack automatically, however you can do it over the phone, which is easier. Just call them once you've received your P60, they will ask you for last years earnings and ask you what your expected earnings are to be this year. They will recalculate the credits you've already received for 2009/10, and calculate 2010/11 based on what you have told them for your expected earnings.

Hope that helps

 

[2nd time mum]

Remember if you renew over the phone to let them know that you are on maternity leave. Any SMP you have received you are allowed to deduct £100 per week off any maternity pay you have received from your gross annual salary.

 

[// arcadia]

Sorry to highjack .. i gave them my 2008/2009 earnings and recieved tax credits - but obviously due to being on mat leave in 2009 i actually earnt alot less than the year before .. so when new tax year comes do they see you earned less and pay you tax credits you are owed? or is it just tough luck you should have rang and stated you was on less money?

 

[suzib76]

i have always kept them up to date on any changes in income, although they generally try to go by the previous years income, this was designed with no thought for all the changes we experience like reducing ours and mat pay etc but if you call them they will adjust your claim staright away

 

[// arcadia]

I didnt want to go down the whole route of well im on mat leave this is what i ''should get'' and then its wrong and i end up owing etc so i never called to update.

When they send the renuwal pack it will ask me to put 2009/2010 income right? which isnt as much as my normal income would be so will get more? oh i dunno .. its too complicated