Tax credits while on maternity leave?

[Eminybob]

I have just had my first dc and am on maternity leave - full pay until November then statutory. I am planning to take a year off so last 3 months will be unpaid.

DP has recently been forced to take a pay cut of around £5k which means we are now going to struggle while I'm on mat leave.

Would we be eligible to claim anything based on my maternity pay while I'm on mat leave even though I'm technically still employed full time? (Based on my full time salary we don't qualify for anything)

Nope, tax credits would be based on what you earnt between April 2013 and April 2014

Bugger. Thought that might be the case.

So in general people have to struggle for a year before being eligible for anything? I guess we could cope as I could go back to work early but how do people cope who haven't got that option?

They will initially base it on your earnings for 2013-14, but if your income drops dratically then you can ringthem back and give them an estimate for tax year 2014-15, and they may adjust your award. if it is your first child, the threshold is pretty low ( around £26k), so uness your joint income was less than this you still wouldn't be eligible for tax credits. You can discount SMP of £100 a week for 39 weeks though, so you can take £3900 off your total estimated income.

There's a great calculator on mse:

www.moneysavingexpert.com/family/benefits-check

If your income has reduced a lot, then you might be entitled to some tax credits. When I made my claim they sent me a letter saying I was only entitled to x amount (ie, hardly anything) and then I rang to advise our income was lower and them updated it. Do bear in mind that you need to consider the whole tax year and whether you'll return to work. Try to be as accurate as possible so you don't get overpaid.

Although rereading your post, in particular the bit about enhanced maternity pay, it does sound like you might be above the threshold but maybe this will be useful to someone.