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How much OMP is due if I don't go back? Tax

5 replies

RatherUninspired · 03/09/2013 08:54

Does anyone know if they will deduct tax before asking for it back. I currently hav deductions including pension etc which amount to about 25% and there is a strong possibility I won't go back. Will they deduct this 25% ish amount as I don't know how I can pay it back when I didn't receive it!?

OP posts:
LIZS · 03/09/2013 08:58

Depends on the terms of your contract . SMP is non repayable. OMP can be discretionary , often on a return to work for so long. Technically the ML counts towards pensionable service and you presumably have kept any benefits during this time so you may be due to repay a gross amount and reclaim excess tax from HMRC after the tax year.

RatherUninspired · 03/09/2013 10:47

I plan on keeping anything above SMP that is all. I can't keep a gross amount surely as I haven't been paid it, ie pension etc? I can't keep all the smp in savings as I need it to pay the mortgage etc

OP posts:
Rockchick1984 · 03/09/2013 10:59

I'm not sure regarding pension payments however if its just your tax and NI then they would bill you for the net amount. I would think its likely you would be expected to repay the pension element of it though.

Many companies will allow you to only receive SMP, with OMP paid as a lump sum at the end once you have decided to return - could you see if your employer is wiling to do this?

RatherUninspired · 03/09/2013 13:27

But I haven't received the pension part it's just part of the deductions so surely they have to claim that from the area/company area it has gone to?!

OP posts:
Rockchick1984 · 03/09/2013 14:29

I doubt if they can withdraw money from your pension fund! Can you cancel your pension contributions when you start mat leave if you can't afford to repay them?

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