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Original poster

One of those situations where everyone keeps passing me on - does anybody know what I should do?

45 replies

Babymeanswashing · 22/05/2021 06:37

My maternity pay (SMP) was awarded to me in one lump sum.

As a result there were loads of deductions which wouldn’t have happened if it had been paid monthly. Some tax but also pension, student loan, NI, etc.

As a result I’ve lost out on around £3500. I don’t know how or if I can get this back - does anyone know what I should do?

OP posts:
grumpyhetty · 22/05/2021 06:44

maternityaction.org.uk

These people might help

tiredanddangerous · 22/05/2021 06:47

Speak to ACAS. They have lots of useful info on their website too.

JustOneMoreRun · 22/05/2021 06:47

You may have to wait until the end of the tax year but I would have thought you could claim any tax or NI overpayments back directly from inland revenue if your work’s payroll department don’t seem able to help resolve it. Call the inland revenue directly or I’m sure you can ask the citizens advice bureau to help you contact them.

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Original poster
Babymeanswashing · 22/05/2021 07:18

Thanks, I am really frustrated by this - is there any way to claim back the pension and SL overpayments?

OP posts:
nailsathome · 22/05/2021 07:21

I had a similar situation and had to wait to claim back the tax at the end of the tax year. Unfortunately I couldn't find a way to claim back the pension and sl payments.

takemetothelakes · 22/05/2021 07:22

Was it paid in this tax year or before April 5?
If it's the previous year then you will need to go to HMRC/student loans company etc separately I think. Have you tried to talk to these agencies directly?
I don't think I'd bother with the CAB for this, they're not tax and payroll specialists so it would be a waste of time. Definitely talk to ACAS.

couchparsnip · 22/05/2021 07:22

I'm not an expert but I would have thought student loan payments still.need to be paid if you have an income over the threshold.

Original poster
Babymeanswashing · 22/05/2021 07:26

I don’t though couch - if I’d received it monthly no deductions would have been made. Same for tax etc. But as I got it in a lump sum loads got taken out. And obviously SMP isn’t a fortune.

It was last tax year. It’s really spoiling my maternity because I’m stressed about money!

OP posts:
Avocadowoman · 22/05/2021 07:47

Firstly I would note exactly what all the deductions were, and how they work.

Take tax for example. That is the easiest to fix, because it depends only on your annual salary, and if you paid too much you can claim it back. Write to HMRC, or phone them up.

For anything that is correctly calculated monthly (pension contributions may fall into this, if as in some places your contribution increases with the amount you earn monthly) then you need to tell whoever made the decision to pay it in one lump that you have suffered detriment.

Original poster
Babymeanswashing · 22/05/2021 07:51

Well yes but they are unlikely to care ... I’m not returning to that post Sad

How crap! I missed out on enhanced MP and now even the SMP has had a load taken off!

OP posts:
Avocadowoman · 22/05/2021 07:51

Student loan - well whether you have actually ‘lost’ anything will depend on whether it is likely you will ever pay it all off. If you will, the payment has just been accelerated. Might not be worth the hassle trying to get the payment back just to pay it again later down the line.

Original poster
Babymeanswashing · 22/05/2021 07:52

The thing is avocado in a ‘normal’ month I barely notice but I had £533 deducted which is an awful lot of money at the moment.

OP posts:
Avocadowoman · 22/05/2021 08:01

:( . I know. It is rubbish. But better to know which ones are fixable than try to spend time and energy on the ones that aren’t.

Sadly I think. NI is correctly calculated monthly. So I think the tax is the only one you can reclaim :(.

Original poster
Babymeanswashing · 22/05/2021 08:02

Thanks. So SL and pension are just gone forever? (sob!)

OP posts:
puddleduck234 · 22/05/2021 08:03

It will depend on your yearly earnings, was this paid after 5th April 2021 or before? If it was before they may have it wrong and added it to last years payments (which is a bit cheeky) if it was after and your tax code is correct work out what your yearly earning will be and see what tax you would pay monthly etc. As it's come out as a lump which is much more noticeable, but probably correct.

Pensions are normally worth paying into still when your on maternity as the government and your work place will pay a tax free % into your pension pot alongside your contributions. It's a nice tax free way to save for an income in retirement so I would check that out before requesting payback on any pension.

Original poster
Babymeanswashing · 22/05/2021 08:05

The problem is I have lost £3000 in deductions from a payment of £7500.

That’s a lot. And I can’t afford it!

OP posts:
nailsathome · 22/05/2021 08:06

My employer didn't care when I spoke to them about it. They just said think of it as investing for the future but I needed that money on mat leave not in 30yrs time!

Original poster
Babymeanswashing · 22/05/2021 08:07

That’s exactly it nails!

OP posts:
DancesWithDaffodils · 22/05/2021 08:10

You can get the tax back. I think the rest is gone.

www.gov.uk/claim-tax-refund

Original poster
Babymeanswashing · 22/05/2021 08:22

Can’t I claim back the pension and SL? The SL in particular shouldn’t have come out.

OP posts:
puddleduck234 · 22/05/2021 08:27

You need to find out how much you will earn this tax year when you go back to work (you say you missed out on enhanced payments etc. So does this mean your returning to work early as that will make a difference)

You can earn £12570 before deductions. So if you are planning to return before 5th April 2022 they will take into account your yearly earnings up to that point (so if your SMP if for the full 39 weeks, then you return to work at 9 months and get paid over £1690 a month you will need to pay tax/NI etc on anything over this amount)

Is this the case or are you planning on taking the full 12 months off and not returning this tax year?

puddleduck234 · 22/05/2021 08:28

Sorry you're. Rubbish at grammar.

Minkymandy · 22/05/2021 08:29

I phoned up student loan company as I had overpaid one year when I was under the threshold and I got the money back within a fortnight. They paid it directly into my bank. I just needed my p60. I'm in Scotland though so not sure if it works differently here but I know Martin Lewis always says to call them up if you have overpaid to reclaim so worth a try.

Avocadowoman · 22/05/2021 08:38

www.gov.uk/repaying-your-student-loan/what-you-pay

Read this on the student loan, all the way down as it depends on which plan you have.

There is a section ‘if your annual income is less than’ that might apply to you depending on your income last tax year (if that is when the payment was made) and the type of loan.

ClashCityRocker · 22/05/2021 08:42

www.gov.uk/repaying-your-student-loan/getting-a-refund

From here it looks like you can claim a refund on student loan if your earnings in total were below the threshold for the tax year, but not otherwise.

NI and pension would be lost I think.

You should get some of the tax back. I don't suppose you can repay the lump sum and ask to be paid monthly instead? This should be doable from a payroll perspective.