Tax credits and maternity pay- big muddle!

[TooHectic]

Hi everyone.

DC2 is due on 12 January and I am already worrying about how to survive maternity leave. I am the main breadwinner and we normally earn 27500 p/a between us which meant no tax credits for us this year. However when DC2 comes along I will be able to claim for Jan to March. I assume they will want to base that on my earnings for 11/12 however these were 23 k as i was on maternity leave for some of that year, so i would maybe end up being overpaid Jan- March?!!

Then from Aril 2013 my income will drop dramatically as I will be on smp for as long as i can hold out on the drop in earnings. But reading up on it they will want to base it on 2011/2012 earnings (27500). So i was thinking i could give them an estimate for the year when i do he renewal and maybe get more money from July 2013 but now i see something about the first 2500.00 of a drop in income being excluded! Does this include a drop in income due to maternity leave?!!! If that is the case I'm in trouble . Has anyone experience of this?

thanks

Yes you can tell them a prediction if your income will be drastically different so you don't get over/underpaid. Also what seems to be a massive secret is that when you are on maternity leave £100 a week of your income doesn't count! Ie if you are on smp which is what about 125 a week (might be wrong) they only count 25 a week as income so you actually get more! Hope this helps but if in doubt ring them! Hate the way tax credits seem to be a state secret and its sooo hard to get any info on how much you get or are entitled to! Good luck!!