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What happens to tax credits when you are on maternity leave?

(6 Posts)
raindroprhyme Wed 29-Jul-09 18:43:28

Thats it really? do you still claim as i am still unemployed. Will need to keep paying for childcare or will lose my space so will be unable to return to work.

can't find anything on tax credits website.

snigger Wed 29-Jul-09 18:50:49

You're still classed as employed for 39 weeks - after that your employment would be classed as ceased for tax credits purposes.

Your entitlement to childcare etc would be ongoing, your working hours would remain on the system at whatever they regularly were when you went on leave.

raindroprhyme Wed 29-Jul-09 19:01:57

good to know.
so i on't need to tell them i am on maternity leave just that we have an extra baby?

snigger Wed 29-Jul-09 19:17:20

Yes - just call if you go back to work and your hours change.

And don't forget you can deduct up to £100/week SMP from the income you declare, for a maximum 39 weeks.

All the best with the birth. smile

raindroprhyme Wed 29-Jul-09 19:19:42

thanks snigger so SMP is not taxable.
can't believe they don't have a bit on the website about it very sneaky.

snigger Wed 29-Jul-09 19:23:00

Just remember you can only deduct the first £100 per week.

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