Tax credit when on maternity leave
Maternity Pay / Tax credits etc! Help please (:
Right so, i got my letter from HR yesterday confirming my maternity leave/pay. Heres the details.
I will start maternity leave on 30th Jan 2011. And my paid maternity leave will stop on 29th Oct 2011.
From 30th Jan to 12th Mar - 6 wks at Ј274.67
from 13th Mar to 29th Oct - 33 wks at Ј124.88
and in addition:
13th Mar to 4th June - 12 wks at Ј152.18 (so for the first 12 weeks of my 33wks SMP i will get 152.18 in addition to the 124.88)
Basically, i know that i am entitled to deduct 100 per week of maternity leave in the tax year for tax credit purposes. And ive worked out that out of my 39wks paid mat. leave, 29 of those are in the tax year; so i will deduct 2900 from my salary of 15800. Making it 12900?
But then i had another thought. my salary technically wont be 15800. because of my maternity leave. soo i did this:
6 x 275.67
33 x 124.88
12 x 152.18
Added that up to work out what ill earn on maternity; and then to work out what id earn for the 13 wks after 39
weeks (to make my years salary = 52 wks) i did 15800/52 = which is 305.something.
then 305 x 13 wks
So totalling up the whole of above, i worked out my earnings would be 11562.72 - i was under the impression that would be my 'salary' that id base tax credits estimate on?
But now i have just realised that my 6 x 275.67 is part of previous tax year along with 3 weeks of the 124.88 and 152.18.
Sooo do i deduct them and then that would be my earnings?
As if i take a full years mat leave id have no pay from 29th oct 2011 to 29th jan 2012 when i go back to work.
Confusing i know but pleasee help.
Just want some rough ideas as to what i will get - and also if i can definitely claim based on an estimate, rather than claiming based on 2010/2011 tax year, as obviously my wages r much higher for the current tax yr due to no SMP etc . As i know that i will be over-estimating slightly anyway by the 13 wks at my salary of 15800. because when i go back it will be part time - so im not worried about over-estimating and having to pay back..Source: babyandbump.momtastic.com