Tax credits on maternity leave

[roalddahl]

Firstly apologies if there are already threads answering this query - my brain is slightly fried due to recently having had DC2!

DH is a SAHD so with me being on maternity leave this year, our household income will be greatly reduced.

Am I right in thinking that we should be able to claim tax credits? According to the entitlement tables, my income should make us eligible.

I have a claim form but this just asks me for my income for the previous year - which, as I was in work full time, is/was too high. I can't see a box to tell them what my income will be for this year 2015/16.

Would we get tax credits this year? Or do I have to wait until next year - when my income will be back up again?

If we are eligible, how do I claim?

I'm not usually stupid but I am finding this impenetrable! Thanks for any light anyone can shed on the matter!

You will have to complete the claim form with previous years income. Once you get an award letter from HMRC contact them giving an estimated income for this year. Make sure the estimate is as exact as possible to reduce chance of overpayment. You deduct £100 for every week you are on maternity leave in this tax year, e.g 39 weeks maternity leave this year, deduct £3900 from your earnings.

Great thanks - so I'll get a letter saying 'no, nothing for you' and then I contact them to amend. A strange system! Thanks for the explanation!

Once you get a zero award then ring them back with an estimate and as pp says you can take off the £3900 although not all of it may fall in the 2015-16 tax year. the threshold for 2 children and assuming no childcare costs as you have a sahp, is around £32k so if you estimate your household income will be less than that for 2015-16 then you may get some help.