Hi all,
Just looking to get some pointers from anyone with a bit of experience of this.
We are just about to have our 2nd baby, due within a couple of weeks, and I just want to get a few financials clear in my head!
Tax
My wife is currently on maternity leave. I have her projected earnings for 2013/2014.
Total earnings: £14680. This includes SMP of £5334.
Now, am I right in thinking that the personal tax allowance for 13-14 is £9440, and that would mean that my wife effectively will have to pay tax on £5240?
My wifes last month of full pay in July, and from then on will be less (going down to just SMP in November)
What happens with the amount of tax being paid month on month, will it adjust during the year, or will she continue to pay the same rate, and then be due some tax back at the year end?
Tax Credits.
in 2013-2014 my salary is approx £25k and my wife will earn £14680, taking our total household income to around £40k. Am I right in thinking that we will not be entitled to child tax credits as our household income is too high?
Also in 2014-2015 our income will be much lower as my wife is not planning on returning to work, so our household income will drop to around £25k (just my salary)
At what point would we notify tax credits of this?
Sorry for all the questions, just want to get things in order within plenty of time! :)
Just looking to get some pointers from anyone with a bit of experience of this.
We are just about to have our 2nd baby, due within a couple of weeks, and I just want to get a few financials clear in my head!
Tax
My wife is currently on maternity leave. I have her projected earnings for 2013/2014.
Total earnings: £14680. This includes SMP of £5334.
Now, am I right in thinking that the personal tax allowance for 13-14 is £9440, and that would mean that my wife effectively will have to pay tax on £5240?
My wifes last month of full pay in July, and from then on will be less (going down to just SMP in November)
What happens with the amount of tax being paid month on month, will it adjust during the year, or will she continue to pay the same rate, and then be due some tax back at the year end?
Tax Credits.
in 2013-2014 my salary is approx £25k and my wife will earn £14680, taking our total household income to around £40k. Am I right in thinking that we will not be entitled to child tax credits as our household income is too high?
Also in 2014-2015 our income will be much lower as my wife is not planning on returning to work, so our household income will drop to around £25k (just my salary)
At what point would we notify tax credits of this?
Sorry for all the questions, just want to get things in order within plenty of time! :)