Tax Credits Tax & SMP (thanks to bigbelly)

[Wobbles]

I wanted to bring this up on its own because I never knew about this & Bigbellys reply on a different thread was right however I searched around I found MANY unknown to this!

A very a GOOD bit of information!

This only applies to those working & receiving SMP from an employer!

also a MAJOR piece of advice...when you are telling them your income details for the year...remember the time you were off on maternity leave...no matter how much money you get you take off £100 a week...

for example if you have the smp now at 117.25 a week you only have to declare 17.25 a week...the tax credits have told me this and i have had it in writing to confirm!!

h x

I also want to say thanks thats nearly £3000 I don't have to declare when I renew my tax credits info this year.

 

[KX]

OMG!

I missed out on this with Rebecca!

So what happens if they "randomly" spot check and request your p60, it would be way higher than what you put down? And does this count if you receive full pay for 14 weeks-do you take 100 off that a week or just the SMP amount?

thanks-god love you, you have made my day, not even day, my year!

 

[bigbelly2]

hey glad im good for some stuff...
i think i know quite a bot about smp, ma, work rights etc as ive had such an ordeal with my employer...

the way the tax credits have explained things to me:
when you are off on maternity allowance or smp what ever your income is for the period of your leave you minus £100 a week...so if you take the 39 weeks off you minus 3900 fmo your total earnings if you have 30 weeks off then deduct 3000 etc..if they do the spot check then you are able to prove your off on smp/ma as it will confirm on your payslips and tax details....

hope this helps you guys..it does my head in when we have allowances and they are not fully explained to us....i have just recently found out that people that have claimed tax credits from 2001 are potentially entitled to a tax rebate of approx £800- £1200
i went through a company called refundsdirect.co.uk they do charge you 25% but i didnt know what i had to do and received £800 that i didnt know about...may be worth some of you guys lookin the website up??

h x

 

[Wobbles]

My SMP goes over the 1st April as well - Do I minus that that next year?



Do they only charge you i fyou have something owed to you? What is it you missed out of curiosity

 

[KX]

I may sound stupid by why are they only taking into account £17 of your weekly SMP-thats them being kind, they never usually are! I get taxed on it too! grrr.

This is fab news btw, shame I never knew this with Rebecca x

 

[bigbelly2]

My SMP goes over the 1st April as well - Do I minus that that next year?



Do they only charge you i fyou have something owed to you? What is it you missed out of curiosity

basicaly what you do is, which ever weeks you have been off on smp or ma you minus the £100 a week...so if it was *for example* 20 weeks last tax year and 19 weeks this tax year you would declare 1900k less than what you earned last year and 2k les than what you thought you would this year...does this make sense??

with people that have claiemd tax credits from 2001 onwards they will prob no, the tax credit system was changed this year and there was an allowance of approx £507 each yr (01-02 and 03-04) that some people had and some people didnt...i was one of those that didnt have it, *you dont have to pay it back and its a tax free lump sum* my friends have all done the same and about 45% off us were sent a cheque for the amount that was owed (all legitimately i might add, i actually had a three way conversation with my local tax ofice and a case handler from refunds direct..I would def advise people that ahve claimed tax credits/working families/child tax credits what ever you call it to go online and call the free phone number, you dont loose anythig for enquiring and if you are not entitled a refund you don pay refunds direct...

KX: the smp i get is the standard one from my employer 90% for the first 6 weeks and then 33 weeks at £117.25 so for the first 6 weeks they will take my income but minus the £100 and then for the last 33 weeks as my income from employment is only £117.25 they onmly take £17.25 into account....hence over a 52 week period if you have 39 weeks smp or ma you are allowed to minus 3900 from your earnings...i really dont know why they do this and as i had an overpayment previously i challenged this BIG TIME as i didnt want to owe more money but it was right!

any other help you guys/gals need then please ask if theres money out there we are entitled we should all make sure we know about it!!!!

h x

 

[Wobbles]

Deduct £100 from your income for each week you received
Statutory Maternity Pay or, if relevant, Statutory Paternity Pay or
Statutory Adoption Pay.
Statutory Maternity, Paternity and Adoption Pay are taxable
income, but for tax credits purposes £100 a week of each payment
is ignored.
If you were on maternity leave but your employer did not pay
Statutory Maternity Pay, you may have claimed Maternity Allowance
instead. Maternity Allowance is not income for tax credits purposes
and should not be included when you work out your total income.

https://www.hmrc.gov.uk/menus/tc603r-notes_02-06.pdf

- Just thought I'd clarify it from the official site! Isn't it funny how they let this 'slide' most times.. I read on other money websites how one person was never given any advice when they rang whist another got a guy who informed her of this deduction!

Crazy stuff!

 

[Wobbles]

One mistake we always make and this thread/information shows its true is we never read the information that comes with any/most applications forms. You think its standard questions, fill it in & post it off as I would have done this year too ......

Page 25 of the tax credits renewel pack tells you a bout this deduction haha!!

 

[Linzi]

Im probably being really thick here but Im not great with these things.

For me, Im taking SMP in the financial year 08/09, so I can only make this deduction when applying for tax credits in financial year 09/10, yes?

xxx

 

[bigbelly2]

hi linzi,

do you claim tax credits now? when you give the tax credits your income details for this year..(your estimated income) then deduct the £100 a week for the weeks you are off so you will do this this tax year 08 - 09

basically when you do your renewal *any time now* tell them what you will have earned this year until april 09 if you are going to be of maternity then deduct the £100 as appropriate and they will change your payments, one of my friends is still giving the same amount of pay *shes not deducting the £100* and will notify them at the end of this tax year so she gets a lup sum back next year but as i need it now im doing it straight away

h x

 

[Linzi]

I dont claim anything just now, but I will once the baby is here.

This is so confusing I used to do payroll as well lol.

xxx

 

[KX]

Can I ask one more question?lol sorry just want to get this right!

If I deduct the £100 per week that will change my monthly payments for this forthcoming year right? So when I go to fill in my renewal pack next year my p60 will show something drastically higher so that will be an over payment?

As I return to work in July(ish) I will not be entitled to that much t/c's-so how do they work it out?

Sorry for the 40 questions and thankyou once again!

 

[fifi83]

Great Info thanks for sharing. Its on page 23 , would of never of known.

 

[bigbelly2]

Can I ask one more question?lol sorry just want to get this right!

If I deduct the £100 per week that will change my monthly payments for this forthcoming year right? So when I go to fill in my renewal pack next year my p60 will show something drastically higher so that will be an over payment?

As I return to work in July(ish) I will not be entitled to that much t/c's-so how do they work it out?

Sorry for the 40 questions and thankyou once again!

hi ya your renewal pack should come through any day now so put your details in there, minus the £100 a week if youve been on maternity, and they will owe you money...they back date it and you will get a lump sum in your bank account, your p60 will show the actual amount you have earnt but they will know you have been on maternity so they do the deduction automaticaly and there is no over payment..all the figures show the correct amount its the tax credits that then deduct the possible full allowance of £3900 from your earnings...
they go off your last financial years earnings and then you precidt your next tax years earnings, as long as you have declared any changes and THEY have the RIGHT info then it sohuld be simple, BUT we are talkig about tax credits here lol

h x

 

[Lil_Baby_Boo]

Wow, this seems good!!

Can you help me too plz? I'm a bit of a bimbo and I'm very confused....

I've been on mat leave for 8 months and due to go back in a week

I applied for TC's in October, so when my renewal comes (if it ever does!) what do I do? Take £3800 from what ever my net pay is on my p60 (which I've still not had either)

???

Ta xx

 

[fifi83]

Wow, this seems good!!

Can you help me too plz? I'm a bit of a bimbo and I'm very confused....

I've been on mat leave for 8 months and due to go back in a week

I applied for TC's in October, so when my renewal comes (if it ever does!) what do I do? Take £3800 from what ever my net pay is on my p60 (which I've still not had either)

???

Ta xx

You would deduct - say you have been on mat leave 20 weeks and receiving smp for 16 weeks you would times 16 by 100 and giving you £1600 so you would deduct that amount

So times the amount of weeks you have been paid SMP x 100 and deduct that from the final year end total. Hope this makes sense.

 

[Lil_Baby_Boo]

Thanks.

I don't think I'll be entitled to anything anyway but its worth a try.

xx

 

[Amanda]

When I had to do mine, I got the pack, and got in such a pickle trying to fill it in that I rang them. The people on the end of the phone are really helpful and if you ring them and tell them that you were on SMP, they'll do it all for you.

0845 300 3900 open 8am - 8pm seven days a week.

 

[Wobbles]

I have to say my thank you for bringing this to my attention is MASSIVE ...I've just been given about £1000 back.

We're doing Caitlins room & we've been discussing finances esspec as we've just moved now I can do it

I'd never have known about this had you not brought it to my attention.

 

[~KACI~]

Tax credits can be so confusin i got a refund after #1 nearly £1500, but they put it into your account befor they tell you-boy did i get a shock when i saw the amount seen as just before goin in bank i was tellin OHwe were skint!! Same again this year i think??
x x