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Pregnancy

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Original poster

Child tax credits

22 replies

MrsCLH · 20/06/2011 11:50

Hi everyone

Just wondered if anyone knows, does the income threshold for child tax credits relate to your income when you're actually on mat leave or what it was before you were on mat leave? Can't get my head round it at all!

Thanks

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silverangel · 20/06/2011 12:03

Before unfortunatley!

OneOf8 · 20/06/2011 12:05

I didn't qualify - but am sure it was based on earnings of the last tax year - so would take into account earnings from maternity pay if they fall into the applicable year - for example

if you were applying now you would use your P60 detail from the tax year April 10 - April 2011.

If your SMP started prior to April 2011, then it would have affected your earnings that year.

Does this make sense?

Original poster

MrsCLH · 20/06/2011 12:08

It does indeed make sense, thanks guys! Basically we will be getting nowt! :-(

OP posts:

nannyl · 20/06/2011 12:21

i cant understand why tax credits relate to what you earning WAS rather than what it IS?

supadupapupascupa · 20/06/2011 12:24

it's an estimate based on what was nannyl. When you get your award you call them back and tell them why it is wrong (ie what you will be earning) and they change it.
it all comes out in the wash and is based on what you really earn in the end.

KatieWatie · 20/06/2011 12:31

supadupa that makes sense but if you are estimated to be elligible for nothing then you get no award, so how do you tell them it's wrong when there is nothing to tell them is wrong

if that makes sense!

sorry but like nannyl I'm also struggling to understand

Original poster

MrsCLH · 20/06/2011 12:48

It seems to me that if your combined income is between £20K and £45K you only get £545 a year anyway, which we might just about get. It won't change whether its the before or after mat leave income cos hubby still earns more than £20K on his own. Am I getting that right?

I am honestly starting to feel sick about how we are going to manage. My income is basically going to be about £800 less than it normally is. How do people do it?!!!!!!!!

OP posts:

inbetweener · 20/06/2011 12:50

Save like mad before TTC then only have 6 months off sadly .
Thats how we do it !

Original poster

MrsCLH · 20/06/2011 12:53

Not much chance of saving like mad before TTC now, I'm 26 weeks pregnant! I suppose I only just started looking at this in detail now, not sure if I was in denial or just listening to all the people that said 'you just manage somehow'!

OP posts:

Rootatoot · 20/06/2011 12:54

MrsCLH If it makes you feel any better, we have no idea what our income is as I'm only PT and now on maternity leave plus freelance work (which has dried up) plus my DH is on contract work and won't know what he has got coming in beyond end of July. I am at the point of not worrying because there is no point! I'm seeing any kind of regular income as a bonus to be honest - I was chuffed I get maternity pay as usually self-employed get nowt! I will get our tax returns done so at least we can apply for tax credits etc when we need to. It's very confusing for people who have never applied for benefits of any kind or had kids previously I think.

Paschaelina · 20/06/2011 12:59

I hate that because my DH is self-employed, I have no idea until a couple of weeks time when his accounts are ready, just what we are entitled to when we renew next month.

They kicked the CTC down about a hundred pounds to £43/month in April, as the first year element went. I don't really have a clue what we will end up with now, hopefully a bit more as I've only had SMP from August last year.

C'est la vie. We will manage on whatever we get.

harassedinherpants · 20/06/2011 13:03

I think they will update if there's a dramatic difference......they certainly used to! I did this when I went on ML with dd, and she's nearly 5.

KatieWatie · 20/06/2011 13:04

MrsCLH I'm feeling your pain. We have a second home abroad thus have 2 mortgages to pay. When my salary drops to £120 a week after 18 weeks, it will be a real struggle to pay 2 mortgages. There's no 'temporary' way round it, it's not like we can just stop paying one. I know we're lucky to have 2 homes but if you're used to have a certain level of income then your outgoings sort of match this and sometimes it's stuff you can't cut back on.

Neither of us have claimed benefits before, and tbh we are just assuming we won't be entitled to anything except family allowance which I think everyone gets and is about £20 a week .

kri5ty · 20/06/2011 13:07

i was looking in to it, and we will get nothing :-(

although someone told me you can apply (get rejected). then ring them back when your materity pay kicks in and they can re look at it (im not sure how true that is, but worth a try)

kri5ty · 20/06/2011 13:10

im just very lucky my employer offers 6 months at full pay, 3 months at half pay... but during the half pay we will be 700 a month short, ideally would like to take sometime off unpaid as well, so i can have the year off, but i douct we can afford it

nunnie · 20/06/2011 13:10

I don't claim CTC or WTC so can't help on this.

KatieWaite you will be entitled to child benefit (there are changes afoot but not till April next year). Does Family Allowance still exist?

Eifos21 · 20/06/2011 13:13

Hello,
What time can you start applying for it? As soon as the little one is here or when you go back to work?
Really finding it all very very very complicated.

KatieWatie · 20/06/2011 13:16

Sorry I think I meant child benefit. I call it family allowance because that's what my mum called it many moons ago and this is my first child so I have no idea what I'm talking about or doing!

kri5ty · 20/06/2011 13:22

Katie child benefit Its around £20 a week for the first child... i have never claimed anything before so i am confused

The child tax credits is the one that they take your income in to account on, and yes it is last years, but i know my friend got told to ring back when her maternity pay dropped even though she had originally been declined

kri5ty · 20/06/2011 13:23

katie haha ignore that last post, i just realised it makes no sence, as is nothing to do with what you said lol i should learn to pay attention more and not give in to baby brain!!

Original poster

MrsCLH · 20/06/2011 14:31

Eifos21 you apply when baby is here and they will backdate it.

We will just not be going out for 6 months and will be getting rid of every single non-essential thing we currently pay out, I have done a spreadsheet! I love spreadsheets haha :-D Helps to see it all laid out, I reckon we can do it but will be on a very strict budget!!

OP posts:

nunnie · 20/06/2011 14:34

Don't be sorry KatieWaitie it is all very confusing.
There are chenges coming in next April with Child Benefit, but at the moment anyone can get it if they wish to. You will get the application form in your bounty pack in hospital (if you want the bounty pack), if not you can get it online.
It has to be one after the birth due to needing to send birth certificate off.

As for CTC and WTC I have no idea sorry.

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