Page 4 | To still feel a bit like I got shafted?

Tinkywinkydinkydoo · 21/10/2021 17:55

Op I think you’ve posted this on the wrong board, this is Aibu, it’s an advice forum. Try posting it in Chat and put a disclaimer that you’re venting and you will likely get different responses.

Aprilx · 21/10/2021 17:56

@Toastandcrumpets

When I left work to go on maternity leave, I received my maternity pay in one lump sum. This meant my tax payments, NI contributions, pension and student loan were all crazy high. I got some tax back but not the rest.

It meant for nine months maternity leave I had less than four thousand pounds.

I still feel annoyed!

You could have been unlucky on income tax if the lump sum was paid in say March meaning it went into one tax year and you didn’t get the benefit of the following years personal allowance and / or were pushed into a higher tax band. But in many cases, the income tax should correct or be refunded.

A lump sum payment would result in NI being either neutral or favourable as it is a non cumulative tax and there is a much lower rate of NI on larger payments.

I don’t know why you had more pension deducted I would have assumed you make a flat rate of contributions. At least it is going into your personal pension out though. Similarly, the student loan payments are at least going towards paying off your debt.

Original poster

Toastandcrumpets · 21/10/2021 17:56

I don’t think I’ll post for a while

OP posts:

Original poster

Toastandcrumpets · 21/10/2021 17:57

That’s the point April. No point claiming it back now. I’m back at work. You couldn’t at the time as no one ever picked up the phone.

OP posts:

Luhou · 21/10/2021 17:59

@Toastandcrumpets

You can’t claim back the SL and as I’ve said I’m back at work now anyway.

It is done. I don’t need several more pages of what a useless piece of shit I am, I know that already thanks.

I'd look into this, just so you're not missing out as I was in the same sittuation and they deffo refunded me.

underneaththeash · 21/10/2021 18:00

Similar happened to our nanny, we moved when she was about 27 weeks pregnant, so she was made redundant and we paid maternity in a lump sum. Employers NI was huge too. She did get her student load payment back, just not the NI.

Having said that, I think a non-renewed contract in law still equates to a dismissal, so they have to follow employment law regarding redundancy payments and return to work after maternity leave.

roarfeckingroarr · 21/10/2021 18:05

I don't understand how it meant you got less.

£100 day x 9 months mat leave = £900

Take 11% NI and 20% tax is going to be the same amount overall whether paid in one sum or monthly.

tiggerwhocamefortea · 21/10/2021 18:07

It's perfectly legal and you would have paid no more tax had you received it over several months instead ? 🤷🏻‍♀️

lanthanum · 21/10/2021 18:13

If your total earnings for the year are below the threshold for student loan repayments, then apparently you can reclaim anything you've paid due to fluctuating income. However if your total earnings are slightly above, so that you would have paid a couple of quid if the earnings had been split evenly, then it's tough luck if you actually paid a lot one month.

OP - it may be worth making sure your employer knows how much difference it made; they may just not have realised, and thought it was just simpler for everyone to pay the lot up front. I suspect nothing can be done for you, but it might make them less likely to do it to someone else in the future.

TractorAndHeadphones · 21/10/2021 18:29

@PassTheDutchyUpYrLeftBackside

Everyone.

The OP is on maternity leave. Her company paid her as a lump sum, which has resulted in possible lost income but definite agro.

Give her a break. She's got a small child and less money than expected.

Meh, she's the one being rude to strangers on the internet

Original poster

Toastandcrumpets · 21/10/2021 18:32

I completely refute I am being rude.

Some of these answers are aggressive questioning more suited to cross examining a witness on the stand than a simple moan about something.

It makes me feel really awful, like I must be a horrible person to get responses like this from the offset. Even though I know MN can just sometimes be like this, it feels horrible to be on the receiving end of.

I think I need to just acknowledge it isn’t the supportive place it was once and move on.

OP posts:

PinkWaferBiscuit · 21/10/2021 18:36

@Toastandcrumpets

I completely refute I am being rude.

Some of these answers are aggressive questioning more suited to cross examining a witness on the stand than a simple moan about something.

It makes me feel really awful, like I must be a horrible person to get responses like this from the offset. Even though I know MN can just sometimes be like this, it feels horrible to be on the receiving end of.

I think I need to just acknowledge it isn’t the supportive place it was once and move on.

No one was cross examining you, we were just trying to better understand your situation so we could give you appropriate advice.

You don't want advice you just want to rant and that's fine but it helps to start by outlining that you're not looking for anything other than a sympathetic ear.

If you had said you just want to whinge then no one would have asked you questions and tried to get a clearer picture.

This site can ve very supportive and for someone in your situation who actually wanted help the replies would have allowed them to clarify points and get the support they needed.

Musmerian · 21/10/2021 18:38

I think if you read all your posts on this thread OP you’ll see that your tone is very abrupt and quite confrontational. People who are venting usually give more details.

TractorAndHeadphones · 21/10/2021 18:39

@Toastandcrumpets

I completely refute I am being rude.

Some of these answers are aggressive questioning more suited to cross examining a witness on the stand than a simple moan about something.

It makes me feel really awful, like I must be a horrible person to get responses like this from the offset. Even though I know MN can just sometimes be like this, it feels horrible to be on the receiving end of.

I think I need to just acknowledge it isn’t the supportive place it was once and move on.

OP in the kindest way possible is there anything else going on?

Doveyouknow · 21/10/2021 18:41

I have had something similar and I did end up paying more NI contributions and student loan payments than I might otherwise. The income tax I could claim back but that isn't possible for NI contributions. It's crap.

MyrtlethePurpleTurtle · 21/10/2021 18:42

@WTF475878237NC

It is the custom on MN to post asking for advice or support or to specify just venting or ranting. It isn't clear what you want from your thread OP.

And god help any poster who doesn’t comply with this dictat!

PinkWaferBiscuit · 21/10/2021 18:43

OP in the kindest way possible is there anything else going on?

I was also thinking of asking but didn't want to get jumped on. I'm not saying this is a certainly but it does really sound like you're struggling with something else and using this thread as a place to redirect your frustration.

We all do similar sometimes like picking an argument that the bin has not been emptied when in reality the bin has nothing to do with why you are pissed off.

Woeismethischristmas · 21/10/2021 18:44

@roarfeckingroarr

I don't understand how it meant you got less.

£100 day x 9 months mat leave = £900

Take 11% NI and 20% tax is going to be the same amount overall whether paid in one sum or monthly.

There’s a monthly threshold for Ni of £520 though so if you get paid in one lump everything above 520 has NI applied. In equal instalments your threshold will effectively be 4680 so op has lost 11% of 4160. Similar calculations for income tax and student loans which op can at least claim back but being down more than 2k (guesstimate) when money is tight would piss me off too.

Hope478 · 21/10/2021 19:04

OP, do you need some advice? How come your company paid you upfront? You might be best contacting ACAS. Hope you're okay.

Dagnabit · 21/10/2021 19:17

You should be able to claim back some of your student loan repayments if your annual income falls below the threshold while you are on maternity.

Blackberrycream · 21/10/2021 19:25

@Woeismeforchristmas has summed it up for those not understanding the NI situation. I was hit by it once. I was unaware of the issue before but have a relative who works at the tax office who explained it to me. There’s not much you can do but it’s good that you are highlighting it here so others can avoid the pitfall.

TulipsTwoLips · 21/10/2021 19:25

I've had this too when I have been significantly overpaid from work by mistake. Larger deductions were taken as I received a larger amount. Then the next month when I received significantly less to put the situation right only the tax was repaid. Student loan and NI etc were never put right.

So basically if I'd had the money in the correct smaller increments over the year I wouldn't have repaid any student loan that year, but because it was messed up I paid it and NI too.

chocolatebiccy · 21/10/2021 19:32

@Toastandcrumpets

I’ve no idea *@PinkWaferBiscuit*

The point was though by giving me my pay this way I lost a lot of money at a time when money isn’t exactly plentiful anyway.

You would have lost the same amount of money weather it was paid monthly or in one go........so I don't really get how you lost out

Blackberrycream · 21/10/2021 19:37

No she wouldn’t.
I’m not surprised the OP is getting frustrated.

Kiduknot · 21/10/2021 19:52

@Couldhavebeenme3

I am borderline for whether or not student loan repayments kick in. If I work just a few hours overtime then I get the deduction. I suspect that in OP's case the lump sum has meant that student loan payments were triggered

How much do you think you've lost op, and in what way?

If I work two days and my third day is carried over to the next week as has happened occasionally I end up paying more NI as it only kicks in when earning a certain amount. I lose money for the same hours.