Why aren't I eligible for tax credits / child tax credits?

[owltrousers]

I am a receptionist and I make 16k a year, I am on maternity leave at the moment, I am just getting stat 39 weeks. my DS makes 18k a year.

I checked and I am not eligible for tax credits or child tax credit even though I won't be going back to work - therefore my income will be significantly lower in 2018/19.

Can anyone explain it to me?

*DS I meant DH! DS is 4 months so certainly doesn't have a job yet :)

So as a couple you currently earn 34k and next year you won’t be earning anything and your DH will be earning 18k.

Not sure what the cut off point is for TCs but you personally won’t be eligible for working TCs as you won’t be working.

To put it in perspective I am a single patent and earn £6-8k a year, with TCs topping up my earning to help me support my 3 DCs. If I had a DP earning £18k I wouldn’t need TCs either. But I don’t know how they work it all out.

Have you used the entitledto.co.uk calculator to work it out?

Put this years estimated income into the calculator. You may still find you aren’t entitled to anything though.

Remember to deduct 100 pw of your SMP

Because as a couple you are not an a low income, surely that’s obvious to you?

I think on those incomes unless you have childcare costs you won't be eligible.

Thank you everyone! I mainly just wanted to check that I wasn't missing something, I was under the impression we were on low incomes, sorry!

I think the threshold is around £16k, so even by your husband's income alone you don't require top ups. It's not there to fund maternity pay for those who choose not to work, it's there for those in genuine need.

@TeeBee choose not to work no need to be sassy!

Sorry; but 34k a year between you is not a low income.
You won't qualify for working tax credits as you'll be working; you're also unlikely to qualify for any housing benefit as your incomes are too high.
You won't be able to claim if you don't go back to work either - working tax credit rules are in a 2 parent household you must work 24hrs a week between you; with one doing at least 16hrs. So you'd have to pick up the other 12, minimum.
You'll still get child benefit though and possibly some child tax credits. I think you'd get about £200 a month in CTC but use the calculator to double check as I'm not 100%.

Sorry; should say
you won't qualify for working tax credits as you won't be working (during your period on mat pay).

I wasn't intending to be sassy. But presumably you are choosing not to work, like I chose not to work while my children were little. I didn't expect to be funded for it, we saved to cover the shortfall. On the positive side, you'll spend a lot less because you won't have a social life for a few years

I may have read this wrong - You will not be returning to work at the end of your maternity leave and your DH earns £18 thou at a full time job?
I would give them a ring and query it at least. You will be entitled to something eventually and maybe even as soon as your maternity pay finishes.

Because tax credits are based on last years income which jointly was 34k. As you won't be earning all your wage this tax year ( 2018-19) then you need to try to estimate what you will be earning and let them know. You can take off £100 for every week of smp up to 39 weeks. The cut off for one child without child care costs is around 26k, so if it comes to less than that you might get something.

Chicken or Egg's advice is completely wrong regarding working tax credits - you would be able to get them if you weren't working as long as your dh is doing over 24 hours but the cut off for working tax credits is around 17.5k so it's unlikely you would qualify on joint earnings as you will have received mat pay for some of this tax year.

Sorry I meant to say you would get child tax credits though even if you didn't get working tax credits.

I have no idea about cut offs but when I went on mat leave we were entitled to (a small amount of) tax credits but I had to phone and explain that my income that year was much lower than the previous year due to mat leave/smp. Otherwise they base it on the previous tax year and you can’t claim them.

If you have a large drop in income you can apply to have it based on this year not last. Wirh main earner on 18k you’ll be entitled to a bit of help I would think