Small tax credits help? Maternity related

[Tootsings]

In a nutshell, I completed the form with my income details on for the years asked (2016/2017).

I had seen a lot of people mentioning that you get more tax credits if you're on Maternity Allowance because they don't regard that as income (only first £100 of SMP is income), and if your new tax Years income is more than £2500 less, you should notify them.

So what do I do? I did call the tax credits line before sending off the form and they said to complete it as usual, wait a few weeks and then give them a call to inform them I'm receiving Maternity Allowance so they can adjust my claim

I think they do classify it as an income.

I think what you mean as maternity allowance is barely nothing you'd get more CTC than if you were on statutory maternity pay

I've had both maternity allowance with first and statutory maternity pay with second. As I received more in statutory pay there was thus more taxable income. Plus they take partners income into account of course

Nameme is incorrect on two counts.

Firstly Maternity Allowance and SMP are exactly the same amount of money after the first 6 weeks (£139/week), SMP is only higher (90% of salary) for the first 6 weeks.

Secondly both MA and SMP are disregarded as income when calculating your tax credit entitlement.

So yes OP just do as they suggested and call to let them know when you start receiving Maternity Allowance.

They do take ages. If you have access to citizens advice they can chase this up if you're financial desperate and do a benefit check for your entitlement.

Well my statutory maternity pay was classified as taxable income

Actually it does depend what level of MA you’re getting; there’s a standard amount which is the same as SMP but a lower amount which is much less.

It went against my earnings for the whole year on my tax form

I know I'm not wrong about partners income being set against it. As that's my situation right now

Citizens advice is the best place they have up to date info plus direct lines to particular agencies. They told us about marriage persons allowance when a flipping qualified chartered accountant told us we weren't eligible!

I'm receiving around £140 a week.

I was advised by Tax Credits over the phone that it isn't taxable income (Maternity Allowance)

When I next ring up, do I have to give them my new calculated estimate of earnings for 2017/2018, with MA taken into account?

Nameme
Yes if you live with a partner then it has to be a joint claim and income and savings of each partner are counted.

I just dug this out:
“the Department for Work and Pensions doesn’t count all maternity pay as income:

• the first £100 of each week’s statutory maternity pay is ignored

-all Maternity Allowance is ignored

Cross post.

“When I next ring up, do I have to give them my new calculated estimate of earnings for 2017/2018, with MA taken into account?”

Yes

How do I work that out? After the 39 weeks of MA are up, I won't be returning to my old job so no idea what the whole estimate would be?

Or is it just up to April 2018?

When did/will you start receiving Maternity Allowance?

You can presumably give them a confirmed figure for your total income in the 2017-18 tax year as it’s nearly finished. You could also estimate your income for next tax year (2018-19) based on the length of time you will get Maternity Allowance (it’s up to 39 weeks IIRC) but it’s not essential. The important thing is to notify them if and when your income increases (eg if you get a new job after your MA runs out) so they can recalculate. Otherwise they are likely to overpay you and then you’ll have to repay it.

Another My MA started when my leave started - 18th October 2017

Ok. Have you just applied for tax credits for the first time? Or have you been getting them for a while and just got a form asking you to confirm any changes in income or other circumstances?

OP - I volunteer for citizens advice. It certainly might be worth a visit. I just wanted to lower your expectations about CAB being able to contact tax credits quicker. I'm not sure if we still have an intermediary line, but even when I used it it could sometimes take quite a long time. (Our area is now full universal credit so I don't help as many people with tax credits).

We don’t have direct lines, would be nice! But no, we have to waste ages on hold just like everyone else...

I think we used to but not any more.

Another it's a completely new claim, I've never claimed before

Singa Thank you for letting me know that! May be worth a visit anyway though