Can I claim working tax credit while on maternity leave?

[elkiedee]

Sorry, have posted this in the wrong place (too general) I think this should be the right one, first thread I've started.

I'm on maternity leave from work in connection with birth of a first baby and believe on current household income I should qualify for a small amount "working tax credit" - I will go from full to half pay after 16 weeks in August (baby will be just over 3 months old) - however, I'm not going back to work until March. As my maternity leave is my employer's scheme, I am still earning.

None of the wtc articles I've seen mention what happens while you're on paid maternity leave and how this is counted.

Also, at the end of my ml I have some paid holiday to take. Presumably I'd get wtc if I was on holiday from work, which I would be, so am I entitled to it while on al added to my ml?

Any help anyone can offer gratefully received.

Have researched answer to my question, it's child tax credit I'm entitled to not working tax credit, and I am still entitled at least for 26 weeks - on maternity leave I'm treated as working. The phone number to get a form and to ask questions is open 8 till 8 7 days a week so I will ring them tomorrow. It's not a huge amount but it's definitely worthwhile claiming. Would still be interested in any general advice on claims, and have a further question - can claim be backdated?

No one's mentioned to me that I should make a claim and it's been nearly a month since my baby was born - I have put in a child benefit claim as soon as I got baby's birth certificate through.

Well what I did was to apply for tax credits giving my income for the previous tax year which was obviously a lot higher. I asked them about this and they said "oh don't worry it will get sorted at the end of the year". They didn't give the option of estimating my income for the current year.

Now I have my P60. Like you DH and I are eligible for some WTC and a considerable amount of extra CTC. I tried to ring them up to give them the final figures and they wouldn't let me, saying I had to wait for the renewal pack. They couldn't tell me how long it would take to get the arrears I'm owed.

Does this help at all? The basic answer is yes you are entitled, and make sure you the amount you claim fits your current circumstances. Don't do what I did and wait, thinking it'd be straightforward to sort out afterwards because I don't think it is!

Yes it can be backdated up to 3 months I think?

I've been told by CTC office that the CTC claim starts from the day you inform them - i.e. cannot be backdates, but that child benefit CAN be backdated up to 3 months.

My CTC was backdated to the date ds was born (as less than 3 months) so got a nice little lump sum that first month.

They backdated mine. I rang up when DD was about a month old.

I also told them what my estimated earnings for the whole year tax would be. They actualy ask you to tell them if income goes up or down - so your certainly should tell them what you expect to earn and not what your earnt last year.

Also be aware that when I rang them to say my income has reduced to £XXXX per week/month I was told to go away and tell them my estimate for the whole tax year as they couldn't process weekly/monthly figures.

I would tell them how much you would earn if you carry on at the this rate for the whole year (i.e 52wks at full pay). Then in August when your income reduces calculate your new annual income (i.e X weeks at full pay + X weeks at half pay or whatever). They will then increase your payments when you are bringing in less and need the extra help. I think (please check this) that you can reduce your income by £100 for each week that you are in receipt of SMP i.e. 26 weeks.

And my biggest tip - overestimate your earnings by 5-10%. They are buggers for overpaying you and then asking for it back/reducing next years payments/giving you nothing next year. I have found that overestimating by 10% seems to give me an accurate figure when they get my actual earnings in April next year.

I'm aware of the problems with overpayment - I think it's dreadful that the government does this with something which is meant to help top up family income. However, I'm at the better off end of the scale of those who are entitled to receive any tax credit at all, and have a method in place for dealing with that if/when it happens. The money will help, a little, to cushion the shock of going to half pay in August and then paying childcare when I return to work.

Government site seems to be silent about backdating of claims, but Citizens Advice Bureau national site has this to say

"You may be able to get some Child Tax Credit for a period before you apply, if you met the conditions and could have claimed earlier. Getting tax credit for a period before you apply is called ?backdating?. You can only get Child Tax Credit backdated for a maximum of three months before the date you apply. You do not have to give any reasons why you did not claim earlier. You should ask for backdated tax credit on your application form."

I will try to make a claim for backdating - foxcub, if this means you've lost money maybe you should complain. I'm going to be asking anyone else I come across with new babies whether they've claimed, whether anyone advised them on tax credits etc etc.

Elkiedee, they do back date it for 3 months so just send the form off ASAP.

BTW did you not get a from in your info from the hospital? I did, but did know about CTC as i'm an accountant.

I think it would have to be backdated for a new birth as I assume they need the birth cert or Child benefit form. Both of which you don't get on day aby is born IYSWIM.

We didn't ask them to backdate. They did it automatically.

I got a Child Benefit form from the hospital but not Tax Credit.

Hi elkie

I recently did a childminding course and part of it involved someone from inland revenue coming to talk to us about tax. We also talked about ctc and wtc with her and she said because of the problems of over payment they have now changed it and unless you earn a huge amount(that i cant actually remember for sure but think was £50k) over what you estimate you will no longer be required to repay it.
Sorry i cant remember the exact amount but it was definitely an amount way out of the reach of most people (or most of the people I know anyway!). Might be worth ringing up and asking but certainly the majority of people now no longer need to worry about over payment.

When I first started work as a TA I didn't get paid hols and wasn't on Mat leave until the Sept and the TC people told me to get a job so I would be entitled

I pointed out that if they could find me a job for a month at 8 m pregnant I would do it and they just blustered.I got my MP involved and he sorted it out and I was entitled as I was under contract just not being paid [grr]

So yes you are counted as paid!

I rang yesterday to ask for a claim form, and was advised to "ring back next week because our systems are being upgraded", also that I should leave it until later in the week because Monday would be a bit busy. Why operate a phone line and then make out you can't take someone's name and address to post a form out, how useless is that? And how sophisticated does the system for form requests need to be.

They better had backdate, if they won't even take my details the first time I call just to ask for the forms.

MrsWho, I'm glad to hear you got your money. I know workers in your position often lose out at work, to face discrimination in benefits compared to other women workers as well seems very hard, particularly as you probably need the money even more than most anyway.

I was told it is backdated as long as you get the form in before your baby is 12 weeks old.

I had a nightmare with them last week. DH had some money from his work's share scheme last year. We dumped it straight off the mortgage so it isn't money that we have access to now. It takes us over the limit for claiming tax credit so I rang and asked if I had to declare it as it was a one-off and makes our income look grossly higher than it really is. The helpful answer: "We don't know." (That's the shortened version. I was on the phone all day to various people).

So I've put it on the form as additional income, I'm expecting them to say we don't qualify and then I'm going to appeal.

I think that if DH is liable for tax on that income it counts. If he is not liable for tax on it - it doesn't count IYSWIM.

However I could be TOTALLY wrong.

It is taxable. We were given the gross amount and DH has to file a tax return this year to sort it out. I used to deal with the Inland Revenue at work and they've never been able to help with anything I asked them so why I was naive enough to think they'd know about tax credits....

We recently had a bonus at work as the company was taken over and a lot of people are not happy as tax credits do take the bonus into account - shows as earnings on the P60. Luckily we only get the basic £42 a month so werent affected but lots were.

My bonus is in 2 halves. The first is cash - which does go onto P60, is taxable and therefore I declare for the purposes of tax credits. The second is shares. If we leave them in trust for 5 years they are tax free at the end and (as I understand it) don't have to be declared on tax return - therefore I don't intend to declare them on tax credit form. We do have to declare any profits based on the price when they come out of trust and sale price. That would be taxable (under capital gains), and I guess may be relevant at the very least for tax credits.

TBH the share side has not been relevant yet and I guess I will have to look a bit closer when the time comes.

Well, if they'll send me the form before baby is 11 weeks old (by 19 July) I might have a chance of meeting that deadline! If I get the same excuse I did on Saturday this week coming, I will certainly be sending a written complaint pointing out that any delay beyond Saturday 2 June can hardly be considered my fault if they can't even be bothered to deal with the request for a form.

Well, after posting I called the tax credit office and got a form sent out. I posted it off and my money started coming through on 29 June, will now receive a small payment every Monday. Make sure you get round to claiming if you're entitled to it - the tax credit website will give you some idea of whether you're likely to be.

i called today asking about what would happen when i stopped work on 20 july for maternity leave and was told you are still regarded as working so will still get benefits plus it will go up as you now have an extra child plus you`ll get the baby element which is normally a payment of £545 for the year. i think it can be paid in lump sum..then after the first year you carry on getting the higher rate of child tax credit as its an extra child ..

I have now started receiving tax credit - I believe it's just child tax credit and not working tax credit as our household income is above wtc levels - and will continue to be for most of my maternity leave.