In year changes to tax credits.

[MissZeroAgain]

I'm going to give TC's a ring this week, but just wondered if anyone could shed any light on my questions.

Currently have 2 DC's. DC3 on the way, and will be due a couple of months in to the next tax year. Not currently entitled to any TC's, but a 3rd child means we are.

If DC3 was due in April, at the start of the tax year, we would be £300 a month better off. But due to getting 2 months full pay during that tax year, suddenly we lose 10 months worth of £300.

I don't suppose there is any way to sort this is there? Unless I took mat leave from the start of April. Which isn't something I'd particularly want to do. Although I guess I could if it meant our income would go from 'not enough' to 'enough to get by with everyone fed and warm'.

The other question I have is - when you give your income for the year, then give them the reduced income, do I get to take off the £100 a week (for 39 weeks) at that point, or do I have to wait to the following tax year before I can take it off my income.

I've claimed TC's a long while ago, the new system is baffling me a lot!

If two months' wages is more than £7320, then that would reduce your tax credits by £3000. Is that what you mean? If that's so, then overall you'd have the same amount of money. Perhaps you could eek out the two months' wages over the year?

In terms of annual wage, you can tell them your estimated earnings at the beginning of the year. However, be aware that you can deduct £100 pw for stat. Mat., but they will ignore the first £2500 of any drop in income. So overall, they'll only take into account the excess drop of £1400 if you take the full 39 weeks mat. Pay.