Repaying enhanced maternity pay - tax etc

[Peeeas]

I wondered if anyone has experienced this, as it's hurting my head trying to work it out!

I've received c.£7k enhanced mat leave, after deducting the statutory amounts which I know can't be clawed back. This is roughly speaking c.£5k after tax and NI.

I'll be returning to work but I am considering leaving within the one year period where clawback applies contractually, if the right job comes up. Clawback is definitely enforced and there is no pro rating (e.g. if I return for 6 months I'm in the same position).

My question is how repayment will be calculated - do I repay the net amount actually received, and then my employer sorts the tax etc? Or do I repay the gross amount and then reclaim the tax via HMRC?

Help! Does anyone have real life experience of how this works in practice?

Hopeful bump and a further thought - if I got them to take it back over my 3 month notice period in 3 equal installments then I guess the tax etc would come out in the wash? Anyone?!

Talk to your payroll team as it can be done from net or gross pay.

Following!

Hi @Alpinechalet, I don't really want to talk to them until I'm ready to hand in my notice (for obvious reasons), but by the time I do hand it in then I'm sort of stuck with however this works - I like to be able to plan!

Do you have experience of this being done from gross / net and are there differences in how this falls out in practice?

I am not a payroll professional but my understanding is in both cases you should pay back the same cash figure. However, gross repayment means the PAYE system recalculates tax etc I’ve always been told gross is better. I also know in year over payments are easier to resolve than those that span a tax year or are from a previous tax year.

Sorry I can’t help further.

Thank you! That makes sense and just good to get a broad idea of how this is done - v difficult to find any info online!