tax credits and maternity leave

[titch]

Im a bit confused and ive got my head spinning about this.

when i applied for tax credits after morgan was born there wasnt anywhere on the form to say that im gonna be on mat leave so wont be earning as much this year.

I figured next year my p60 will have a much lower income so it would just balance out as im going back to work then.

but then i read that you have to inform them that my income would increase in 2011 andthey would adjust my claim.

so how do i get them to consider the fact that 1) my salary significantly dropped in august 2009 so my 2009-2010 p60 was higher than this year even without considering the mat leave and 2) im on mat leave so im not even earning my new lower salary this year.

 

[megsmeadow]

Hmm, these things have me confused too! I thought we'd get working tax credits based on what we're earning now but it's calculated on last years earning I think. So we're getting credits now for a higher salary in 2009-2010, and our credits next year will be based on our lower income while on mat leave......I think. Maybe someone else can shed some light.

 

[titch]

thats what i thought at first but when we get tax credits next year, based on this years income, we'll be technically being overpaid cos we should ring them in our income goes up i think they make it deliberately bloody impossible!

 

[megsmeadow]

but we're telling them about our current income so they can calculate next years? Yes they do make it very complicated, and pray on the nappy brain!! I dunno. I'd like more money though

 

[titch]

me too! how long did it take for them to process your application? It seems to be taking forever!

 

[megsmeadow]

I think it took about 5 or 6 weeks. Then came back saying we were only entitled to child tax credit and not working tax credit but will have the working tax credit next year. That's if all the benefits systems aren't all jumbled up and redesigned by then

 

[titch]

oh gosh i forgot about that! i hope they simplify it!! why not just have 1 type of benefit which takes into account income, children and disabilities?!

 

[mel_ed]

ive just got all mine sorted and still i'm still confused really its stupid how it works. i applied before on loast years earnings. as soon as the letter came through 2 say we could get it i rang them up 2 say i'm on a much lower income now. they said i had 2 give an estimate of his years earnings and they'll adjust it accordingly. so at the min i get £20 a week hopefully when teh nnext payment it'll go up

 

[titch]

oh right, so instead of putting it on theform you have to apply, wait for the decision then ring then so they can work it out all over again i'd better work out this years income so i can ring them the day we get our decision.

 

[titch]

actually i think i'll write to then, my phone bill was through the roof last time i rang.

 

[ShadowWolf]

Blergh, I have been plowing through the benefits system for 4 months already as I was signed off sick with my SPD so tried to apply for sick pay from work, didn't qualify so had to go on Employment and Support benefit instead. Then I tried to apply for maternity pay, I don't qualify for that either so I have had to apply for Maternity Allowance :S Im dreading applying for Child Tax Credits when she's born, I already know we dont qualify for regular tax credits as we are just over the earning limit of 18K apparently.

They told me that it's calculated using last years income (P60) so that's what i'll give em, even if it means I get extra money next year... although come to think of it, I'm not going back to work after baby arrives (can't afford it ) so our income will be even lower.... makes my head hurt just thinking about it!

xxxx

 

[megsmeadow]

One streamline benefit would be so much easier, apply, tell them your situation and what you earn and be done with the fannying about!

 

[mel_ed]

ye thats what ppl have told me. i worry loads incase ive worked it out wrong and have 2 pay it back teh following year

 

[titch]

see this is what Im talking about, apply for maternity pay, then apply for maternity allowance. Its the same amount of money, and comes from the same place in the end why have 2 systems?!

It definately gives you a headache! Where did you hear about 18k? I dont think its that simple unfortunately. Maybe below 18k you get the maximum award but its means tested higher than that too.

 

[titch]

One streamline benefit would be so much easier, apply, tell them your situation and what you earn and be done with the fannying about!

I bet they'd save so much money managing just one system too. Oh I hope thats what they do! It would stop these families who manage to earn 50k through the various systems cos it would be obvious how much money they were getting.

 

[ShadowWolf]

I heard about the 18K when I phoned them to see if my OH could get working tax credits as he fulfills all the other criteria (I didn't) and they asked me to add together our combined earnings from our P60's and it came to a total of about 22K, whereupon I was told that we earned too much and didn't qualify :S I may try again when I apply for Child Tax Cedits, can't do any harm.

xxx

 

[mel_ed]

yeh i was told it was 18k 2. its so rubbish u get nothing for working hard!

 

[titch]

really? 18k as a couple both working over 16 hours per week. Surely thats impossible. Whats minimum wage now?

Does the threshold go up if you have kids?

 

[titch]

2 people working full time on minimum wage wouldnt get working tax credits (I just did the maths)

 

[ShadowWolf]

Yup, annoying isn't it? My OH earns 17.5K a year but gets a small bonus which takes him up to about about 19K if he's lucky... the annoying thing is that he is saleried and gets no extra money for working overtime. He works up to 50 hours a week and doesn't even get a thankyou let alone any extra money. If he got paid for what he worked, we'd be rolling in it.... well..... compared to what we do at the moment! XD

xx