Posted: Wed Aug 03, 2011 8:35 pm
Post subject: Maternity Pay Advice
My partner and I are trying for a baby but I am very worried about how we will afford to live while I am on maternity leave.
I earn £30,000 and my partner is self employed. As he is only in the first couple of years of business he is a very low earner, possibly £6000. I would like to take the first year for maternity leave but worry how we will afford this.
How are benefits calculated? Would we be entitled to low income credits as technically we would be living on a low income? Or would my working salary be used?
We have very little savings.
Thanks in advance.
Posted: Wed Aug 03, 2011 9:18 pm
MY salary before Amy was 30k and believe me the drop to 123 a week maternity is a huge one!! I'm sure you would be entitled to some tax credits, there's a calculator on Hmrc website. YOu'll manage though, somehow. I didn't return to my job and now work part time somewhere else earning about 14k, we have had to cut back on a lot of things but we get by, as do many other mums.
Posted: Thu Aug 04, 2011 12:46 pm
Thank you, it is comforting to know that other people are in the same situation.
The HMRC calculator asks about annual income which makes it tricky to complete as currently I definitely am not eligible. I would also still be classed as employed which complicates things as well. I'd be interested to find out if anyone had claimed benefits to supplement maternity pay, despite having a well paid job pre-baby!
Posted: Thu Aug 04, 2011 7:12 pm
tax credits are based on the previous year - so you would not get much while you were off (depending on timimgs) but then from the next April you would get the credits. It doesn't help while you are off, except that you can borrow and know you will have a little extra later to help pay it back.
Posted: Thu Sep 01, 2011 10:00 am
you woudl get child tax credit and child benefit once ur baby is here and u could be entitled to working tax credits as your partner in on low income.
and slo you could be entitled to council tax benefit, housing benefit as you will be on low income.
Posted: Mon Sep 19, 2011 5:47 pm
you can ask the tax credits to calculate on a current year basis, but they will first calculate on your previous years income.
calculating on a current year basis will only benefit you if you go on ML early on in the tax year. and also when you are on ML they reduce your income by 100 a week for each week you are claiming SMP. so if you claim for 39 weeks, then you can take £3900 off your total income for the year.
Posted: Thu Sep 29, 2011 4:57 pm
OMG I didn't realise it was so complicated or that it was based on the previous year. Is the final calculation done on a sliding scale basis, ie you earn this much you get this and if you earn this much you get this or is it a straight you are over the threshhold therefore you are not entitled.