To ask for clarity on repaying enhanced maternity pay?!

[H3yth3r32020]

Resorting to asking the Internet because I just cant seem to get a straight answer from HMRC/my employer!

Does anyone have any experience of not returning to work after maternity leave and being asked to repay enhanced maternity pay?

Do employers generally ask for it to be repaid net or gross - and if gross, can you claim back your tax and NI contributions from HMRC? Or is it the company's responsibility to claim that back themselves?

Thanks for any advice you can offer!

For context my circumstances have changed during mat leave and I'm no longer able to return to work as planned - trying to figure out how much of a hole I'm in and if I'll be able to repay in installments!

I did return to work but asked my employer to work out the total amount. It was way higher than I expected and definitely seem to include the tax.

I would assume you can then claim it back but it might be at the end of the finical year.

It depends on when you received the money and how long you need to pay it back. I work in Payroll, in our company Any overpayments that are repaid within a tax year gross is paid back. If the maternity enhanced pay was last tax year we would be asked by HR to work out how much NET you have to pay back. Once the money is paid back we would then have to complete balance adjustments and report to HMRC. HTH

@Crispycremedelight

It depends on when you received the money and how long you need to pay it back. I work in Payroll, in our company Any overpayments that are repaid within a tax year gross is paid back. If the maternity enhanced pay was last tax year we would be asked by HR to work out how much NET you have to pay back. Once the money is paid back we would then have to complete balance adjustments and report to HMRC. HTH

@Crispycremedelight (great username) that's really helpful to know, thank you!

So for example - my mat leave started last August, with my enhanced pay ending in January, and I'm now being asked to repay (which is now a new tax year) - then really they should be asking me to repay what I've received net and they will then have to work out how to get the tax/ni back from HMRC?

I only ask for clarity because that's the exact opposite of what my employer has told me - but then HMRC has said that's not the case but can't advise on how I can dispute this with my employer.

Thanks again for your viewpoint - its good to have some validation!

I would question this as you the enhanced pay would have included SMP as well (as long as you’ve been with the company long enough), which you are entitled to even if you left at the start of your Maternity. if you pay it all back gross you may get TAX back as you may fall under the PAYE threshold, depending on your personal circumstances. I would ask your employer to break EVERYTHING down and get everything in writing