Maternity pay and tax credits

[Sugababe6275]

Hi there

 

Looking for a bit of advice as spoke to two people at tax credits and they have told me different things.

 

I rang to say I'm on maternity pay and it affects my income- first lady asked when my maternity started which was 01/08/2011 and I went down to statutory maternity pay on 31/01/2012, she said I would have a £3900 deduction on my income (39 weeks of maternity pay at £100 week)

 

When I called the second time, a different lady said I would only have a £1000 deduction on my income (this is from 31/01/2012 till the end of the tax year)

 

Anyone know which ones right?

Does the £100 week deduction only start from when you go down to statutory maternity pay or does it start from the first day of normal paid maternity pay

 

Thanks

[Sparklez30]

I'm not sure I know the answer but just to check are you saying you got more than statutory maternity pay from 01/08/11 to 31/01/12 (I am guessing you got a higher contractual maternity pay for this period?)

 

I know that for SMP you can disregard £100 per week - I do not know the answer if it is contractual maternity pay I'm afraid?

[Sparklez30]

actually found this on the tax credit calculator

 

Statutory Maternity Pay

 

To help you take time off work when you have a baby, you may be able to get Statutory Maternity Pay (SMP), a weekly payment from your employer.

 

If you had a child (or adopted a child) in the last tax year you may have taken statutory maternity, adoption or paternity leave during the year and your employer may have paid you statutory maternity, adoption or paternity pay.

 

SMP is a taxable income, but for tax credits purposes £100 a week is ignored. You need to deduct £100 from your income for each week you received SMP.

 

If you were on maternity leave but your employer did not pay you SMP, you may have claimed Maternity Allowance instead. Do not include Maternity Allowance received as this is not counted as income for tax credits purposes.

 

There is no mention of deducting for anything other than statutory maternity pay?

[Sugababe6275]

Hiya

 

Thanks for the reply

 

Yeh I was paid for the first six months of being off then went down to smp, probably going I have to wait and see what they decide i think, I just got confused after being told two different things, which makes you worry that they are saying different things lol

 

Thanks for the reply

 

Laura

actually found this on the tax credit calculator

 

Statutory Maternity Pay

 

To help you take time off work when you have a baby, you may be able to get Statutory Maternity Pay (SMP), a weekly payment from your employer.

 

If you had a child (or adopted a child) in the last tax year you may have taken statutory maternity, adoption or paternity leave during the year and your employer may have paid you statutory maternity, adoption or paternity pay.

 

SMP is a taxable income, but for tax credits purposes £100 a week is ignored. You need to deduct £100 from your income for each week you received SMP.

 

If you were on maternity leave but your employer did not pay you SMP, you may have claimed Maternity Allowance instead. Do not include Maternity Allowance received as this is not counted as income for tax credits purposes.

 

There is no mention of deducting for anything other than statutory maternity pay?