Maternity leave - tax rebate?

[fibeee]

Hoping someone who has experienced this can help. The information online is very confusing.

I have been on an enhanced maternity package from my employer and taxed throughout my mat leave so far. That has run out now and I am on MA (not entitled to SMP). Will I get a rebate on any of the tax I’ve paid this financial year? TIA.

Sorry I should have added that I’m going back to work at the start of Jan so am just wondering if I’ll be entitled to a rebate for the 3 month gap.

Only if your tax code would be wrong given our actual income this tax year in which case you would have over paid and a rebate would be due. Mine happened automatically through my employer.

It depends if you earn over your personal allowance in the 2020/21 tax year. Could you do a rough calculation to see?

I got tax refunded during the months I was on SMP only, so no lump sum rebate at tge end of the tax year but money returned gradually over the remainder of the year. I was on enhanced mat pay Sept-Dec then SMP Jan-May roughly, tax rebates in Jan-March.

@Everythingsr0sie yes I did a calculation and I will earn over the personal allowance this year.

@Megan2018 thanks. I was wondering if I something similar would happen to me. Small rebates for the 3 months.

If you are PAYE and paid tax since April you will start to receive some tax back - your situation is a but strange though as you will switch to getting MA not paid by employer. If you were my employee I would advise you to contact HMRC for advise/let them know of your change in circumstances so they can alter your tax code and who is using it.

When you go back in Jan your tax will be adjusted - through PAYE, it is assumed, generally, that your earnings are roughly averaged over the year. As you aren't earning for 3 months, then yes, it is likely that you will receive either a rebate or reduced tax payable from Jan-Mar.

Hello,

Is it possible to claim back tax and NI if I have to repay enhanced maternity pay? Has anyone done this before? I would appreciate hearing about your experiences.

Regards

@SabrinaUK make sure your employer does the recovery via payroll. Then contact HMRC, you may have to wait until after the tax year end.