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Tax credits estimation of income

5 replies

Pooky77 · 08/12/2016 13:49

I'm due to start maternity leave in January and my income for the tax year to 5 April 2017 will be too high for a claim. But next tax year i will make around £18k and my DH £16k so i think we would be entitled to some tax credits.

What i need to know is, when do i make a claim? Straight after baby is born in Feb 2017 or wait until after 5th April 2017, or do i have to wait until 5th April 2018 when i know my earnings for sure? I'm hoping i can just give an estimate of earnings for the 2017/18 tax year and then get the tax credits while i'm on maternity leave but i have no clue if that's allowed or not?

OP posts:
AndNowItsSeven · 08/12/2016 13:54

You won't get tax credits on an income of £34k unless you have multiple children or children with disabilities.
Is the 18k including maternity pay because you can deduct that from the total.

Pooky77 · 08/12/2016 14:10

Yes without SMP my earnings will be £14k in 2017/18. I entered my estimated earnings for that tax year into the online calculator and it suggested i would get something, i'm just unsure if i'm ok to estimate my income and claim when baby is born or if i have to wait until i know what my earnings are in April 2018?

OP posts:
AndNowItsSeven · 08/12/2016 18:18

On 30k total income with one baby? You would only be entitled to wtc for childcare , no child tax credits. The cut off is £25k for one child £35k for two.

Pooky77 · 08/12/2016 18:33

Yes I see now that it will only apply when I go back to work and pay childcare. I think I'll make a claim when baby is born which will be nil and then update the claim when I'm paying childcare in November.

OP posts:
Leatherboundanddown · 09/12/2016 01:13

I think in your situation there will be little point applying before Nov. You will just cause more paperwork and confusion. If you know you won't be entitled then I would wait.

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