Maternity leave and tax credits transfer

Oscaresque

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I have looked for the answer to this but have failed to really find what I am looking for.

I am hoping to be taking maternity leave in the next 18 months. My company will not be paying me any mat leave so I will only have maternity benefit payments coming in. Can someone direct me to a calculator or a formula that will help me work out how much transferring my tax credits to my husband will benefit us or how much tax I can claim back when I return to work after 6 months.

Thanks.
 
There's no simple way toanswer it, and it becomes more complicated if the 6 months straddles 2 tax years.

Looking at it most simply, say you have 3,300 of tax credit (1650 PAYE, this can't be transferred, and 1650 personal credit, fully transferrable). If you are going to earn 16,500 or more in the 6 months of the year that you will be working, then you'll need all 3,300 of tax credit to cover your own income. Any transfer to hubby would only be a short term cash flow benefit, you'd end up paying more tax when you went back to work.

The bulk of the benefit would possibly be in the transfer of standard rate band from you to him. As it stands you may each have half of the standard rate band, but with you only earning for 6 months in the year, you might be able to transfer the maximum 9k to your husband, in which case, if he's a high rate taxpayer it could save 1,890 in tax.
 
Thanks for this - although I can honestly say that I barely understand a word of that. Think I need to phone revenue and see if that can help.
 
For what it's worth - I spoke to revenue and I think my husbands pay would go up by about e200 a month if we give birth next October.
 
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