Tax Credits

[BabysMomma]

Ladies

I applied for tax credits and got a letter back saying that based on my total household income, my entitlement would be £0.00. However, I spoke with the local tax credit office and they advised me to subtract £100 for the 33 weeks I'm getting the normal £128 odds as this is allowed and ring the helpline and give them the new total explaining why my income is lower this year (obviously due to going onto SMP).

I rang them today, gave them the info and they advised that I would receive a further letter from them based on the new income total I gave them. So, its just a waiting game to see if it'll make any difference. But I'll let yas know when I get the letter.

I just thought I'd share this in case someone didn't know that you are allowed to subtract the £100 per week from your earnings for this year due to SMP.

Hope that makes sense.

 

[Jones]

i am trying sort out my tax credits....im very confused..i phoned up and they said id be allowed 10 pound odd a week for child tax credit but zilch for working.....im confused by te £100 deduction how do u work it out now. my babys 10 weeks old im wondering whether i shuld sort it out now or not xx

 

[Jones]

ok, ive got lil baby of 10 weeks...i love my partner to bits however....we are currently living with my rents to save up....now im going to put a deposit on a house and he will help pay rent etc.....how can i ensure that when i buy a house he has no chance of taking it away from me if we split i just want a bit of reassurance..i feel crap knowing im putting the deposit down and due to his finances we cnt out a joing deposit..i feel crap and like i have the upper hand..any advice?

..and also his parents ive just found out have £25000 debt...will this debt be passed on to me and my partner if they pass away...he has brothers and sisters ...

please can u offer any advice thank you xx

 

[BabysMomma]

i am trying sort out my tax credits....im very confused..i phoned up and they said id be allowed 10 pound odd a week for child tax credit but zilch for working.....im confused by te £100 deduction how do u work it out now. my babys 10 weeks old im wondering whether i shuld sort it out now or not xx

Yes, you should defo give them a call. Your income for the weeks that you get normal SMP for(£128 odds), you can deduct £100 from the total you gave tax credits in April '11 as you gave them your total income for last year. As you are on a lower income this year due to maternity, they then recalculate what you're entitled to. It all depends on your circumstances too.

It'll probably be another week or two before I know what I'll get as I only contacted them on 23/05/11, but I'm not expecting it to be mega bucks, but then every little helps whilst you're off on mat leave. I didn't realise just how much worse off I'd be on mat leave for some weird reason!

I probably haven't done a good job in explaining how to work it out, but I'll try with an example...

Say you get £13,000 per annum for your salary, you go on mat leave for the 39 weeks. The first 6 weeks you are paid 90% of your salary, therefore you have 33 weeks left on mat leave getting SMP at the rate of £128. Working Tax Credit allow you to deduct £100 for those weeks which equals £3300 from your annual income which would leave £9700 as your annual income for this year. You call them and give them that figure and as you'd be classed as on a low income, they recalculate your entitlement.

The above is just an example as obviously I don't know what your total household income is or your circumstances, but as I understand it, its really subtracting the £3300 from whatever YOUR total household annual income is, calling them and asking them to recalculate. I know in my head that I make sense to me Its difficult trying to explain it. But really, best thing to do is give them a call and tell them you're aware that you can deduct £100 per week due to SMP and get them to help you with calculations etc. That's what they're there for. x

 

[BabysMomma]

ok, ive got lil baby of 10 weeks...i love my partner to bits however....we are currently living with my rents to save up....now im going to put a deposit on a house and he will help pay rent etc.....how can i ensure that when i buy a house he has no chance of taking it away from me if we split i just want a bit of reassurance..i feel crap knowing im putting the deposit down and due to his finances we cnt out a joing deposit..i feel crap and like i have the upper hand..any advice?

..and also his parents ive just found out have £25000 debt...will this debt be passed on to me and my partner if they pass away...he has brothers and sisters ...

please can u offer any advice thank you xx

I'd seek advice from a solicitor tbh. I know its not the most romantic thing to do but you have to think about you here, cos if anything where to happen between you and OH then romance doesn't come into it iykwim.

I'm sure something can be drawn up and signed to ensure that your investment is protected etc and if OH is meant to be, then I'm sure he wouldn't mind in the slightest if you have something legally drawn up.

As far as I'm aware, your OHs parent's debt cannot be passed onto you. That just wouldn't be legally right. I know that when my Mum passed away, her debts were just written off and they just classed her as deceased and that was it. x

 

[nadine]

i am trying sort out my tax credits....im very confused..i phoned up and they said id be allowed 10 pound odd a week for child tax credit but zilch for working.....im confused by te £100 deduction how do u work it out now. my babys 10 weeks old im wondering whether i shuld sort it out now or not xx

Yes, you should defo give them a call. Your income for the weeks that you get normal SMP for(£128 odds), you can deduct £100 from the total you gave tax credits in April '11 as you gave them your total income for last year. As you are on a lower income this year due to maternity, they then recalculate what you're entitled to. It all depends on your circumstances too.

It'll probably be another week or two before I know what I'll get as I only contacted them on 23/05/11, but I'm not expecting it to be mega bucks, but then every little helps whilst you're off on mat leave. I didn't realise just how much worse off I'd be on mat leave for some weird reason!

I probably haven't done a good job in explaining how to work it out, but I'll try with an example...

Say you get £13,000 per annum for your salary, you go on mat leave for the 39 weeks. The first 6 weeks you are paid 90% of your salary, therefore you have 33 weeks left on mat leave getting SMP at the rate of £128. Working Tax Credit allow you to deduct £100 for those weeks which equals £3300 from your annual income which would leave £9700 as your annual income for this year. You call them and give them that figure and as you'd be classed as on a low income, they recalculate your entitlement.

The above is just an example as obviously I don't know what your total household income is or your circumstances, but as I understand it, its really subtracting the £3300 from whatever YOUR total household annual income is, calling them and asking them to recalculate. I know in my head that I make sense to me Its difficult trying to explain it. But really, best thing to do is give them a call and tell them you're aware that you can deduct £100 per week due to SMP and get them to help you with calculations etc. That's what they're there for. x

Do u no if u still deduct it if u r only on part time?

For example I claim t.creds already for Lil lad but work part time (16h) I get 5880, n I've been on may leave sine June (first full months of 90% of wage coz that's lower then the £128)

Surely I can't deduct 100 as I'd only be on 2400+ haha a year but worth knowing

N I thought they asked for last years income not the year to come? Or am I off the mark n havin Preg brain x

 

[nadine]

Haha I think I'm just being thick as I actually only loose 60 pound a month being on mat pay to normal wage, n I think coz I'm on a low bracket wage being part time anyway it don't matter as I'm on highest help I think lol x x

 

[BabysMomma]

hey hun, sorry, only just seeing your post. I'm not sure about part time tbh. I'd defo give them a call.

Well I'm getting a measley £22 a week Suppose it'll be more when I can claim the child element. Suppose every little helps. x