Does anybody know if additional maternity leave counts as being in work & would therefore mean a client is entitled to Working Tax Credit? All the books (DRH & CPAG & HMRC website ) state ordinary maternity leave counts but no mention of additional maternity leave.

Only OML counts as being in remunerative work for WTC, AML does not count.

Is it therefore the case that you can claim WTC for the first time while on OML and still be treated as in remunerative work and get the 30-hour element? My client is 20 and on SMP but is expecting her first child in Feb. 07, so I have advised her to claim from the birth of the baby. Is it correct that she does not have to have been working at the date of the claim?

I ask because of the "treated as" rule, because I did a calculation for another client who is on SSP and terminally ill and it seems you can be treated as in work when on SSP, but cannot get the disability premium unless you are actually working.

Yes, a client on OML can apply for TCs and will be still be treated as being engaged in remunerative work provided they were working at least 16 hours per week immediately before the OML began. Whilst on OML they will be treated as engaged in remunerative work for the same number of hours they were working immediately before OML began. Of course it is important that she contact the TC helpline if she does not return to work when OML ends or she will continue to receive WTC and be overpaid!!

SSP appears to have the same rules. I don't understand why the disability premium would not be payable to a client in these circumstances, since the TC computer does not recognise a difference between "actually working" and being treated as engaged in remunerative work. Could you explain??

I used the Lissom Grove Quick Benefits calculator and it definitely does not give the disability element, although everything else appears correct (30-hour element even though neither of the couple is actually working etc). The only explanation I could think of is that he must actually be in work of at least 16 hours, not just treated as in work.

I apologise, I have now realised that I need to identify the disability element manually, so have done so and it is fine. Sorry to waste your time.

I agree with what has already been said about additional maternity leave however, it is possible to be treated as in continual paid work for, up to, 4 weeks while on unpaid leave.

see the following:

TCTM02405 - Entitlement: WTC entitlement - Qualifying remunerative work

Unpaid leave
A period of unpaid leave lasting not more than 4 weeks, which is not part of a series of periods spent on unpaid leave, and which does not combine with other factors to reduce normal working hours will not, in itself, affect normal working hours.

I also agree with what has been said, but just thought it was worth adding that you are also treated as working whilst getting SMP/MA and for babies due on or after 1 April, these benefits are paid for 39 weeks - as far as I can see allowing a woman to be treated as working for WTC for 3 months after the end of Ordinary Maternity Leave.

my understanding was that as long as you are still on the company's books you are entitled to wtc

I'm afraid I don't agree, though I'd love to be wrong.

My understanding is that the entitlement to W.T.C will cease (subject to the exeptions stated in previous responses, including mine) at the end of the Statutory period of Maternity, Paternity or sick pay.

The problem is that W.T.C often continues in payment, and the HMRC help-line has assured people that this is allowed. However this may result in an overpayment.

So people may indeed continue getting W.T.C after their S.S.P or S.M.P ends, but the result is an overpayment.

I agree with what everyone has said above - only Ordinary Maternity Leave (as opposed to additional maternity leave) counts as being in remunerative work.

We became aware of this problem (where TC continued to be paid after OML ended) back in 2005 and put an article on our website warning people about the possible impact on their tax credits when employers provide generous extended sickness or maternity arrangements. The article is here: http://www.litrg.org.uk/news/index.cfm?id=269

I've been having a read on some Employment Rights info which impinges on this question.

SMP payment period is to extend to 39 weeks.
HOWEVER
The Ordinary Maternity Leave (OML) period remains at 26 weeks.
UPSHOT
The entitlement to WTC as in remunerative work only runs for 26 weeks from the date the SMP starts.

I'm not sure if the last posting was correct. My reading of regulation 5 is that the claimant will be treated as being engaged in qualifying remunerative work for any period during which they are paid statutory maternity pay and there is no mention of the length of time this runs for, so if SMP is paid for 39 weeks then entitlement to WTC continues throughout that 39 weeks. If I've got that wrong, I'm sure someone will correct me...........

I agree with you, here is what it say's in their Guidance Manual:

TCTM02402 - Entitlement: WTC entitlement - Qualifying remunerative work
Periods of Maternity, Paternity or Adoption Leave and periods of illness or incapacity for work - treated as being in qualifying remunerative work
The Working Tax Credit (Entitlement and Maximum Rate) (Amendment) Regulations 2002, Reg. 5 & 5A
Time off in connection with childbirth and adoption
A person who:

is paid maternity allowance,
is paid statutory maternity pay,
is on ordinary maternity leave (or would have qualified but for self employment),
is paid statutory paternity pay,
is on paternity leave,
is paid statutory adoption pay or
is on ordinary adoption leave
is treated as being in qualifying remunerative work, provided he or she normally worked at least 16 hours or at least 30 hours (whichever applies) immediately before the leave or statutory payments began.

NOTE THE WORDS "PAID STATUTORY MATERNITY LEAVE"

Regulations 5 and 5A themselves contain no time limits, so the time limits are determined elsewhere in the main SMP legislation.

The only possible reading of regs 5 and 5a is that you are treated as being in remunerative working during the SMP perios however long that may be. But I haven't seen the regs changing the SMP period and don't know whether the version of regs 5 and 5A might have been amended at the same time. I'd guess not.

Also I'd guess that the change will only apply to confinements after commencement, so anyone already on SMP at that date will not benefit from the extension.