please can you double check my maternity/tax credit calculations

[sezzolou]

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

 

[baileybubs]

I dont know for certain as I am in the middle of my tax credit application but from everything I have read yes that is true, they dont count the first £100 a week of your mat pay. I have no idea why, or whether that is affected by your other income but thats what I have been lead to believe too.

Your calculations all look correct and apparently if you earn less than £26k between you and OH you should be entitled to something.

 

[sarahtia]

yes you are right i have just renewed my tax credits and they dont take the first £100 pw you get on maternity, i would ring them to do your claim so you cant get it wrong tho as they go through it properly with you. they ended up owing me money for last year which was really nice

 

[baileybubs]

Hi,

I got my letter today telling me I'm not entitled (based on last years earnings) and I phoned up to tell them change of income. Make sure you have figured out an estimate of what you will earn before you phone, and they did say to me that I should take £100 a week for each week of maternity off my earnings figure.

Fingers crossed now I will get something from them soon!