help im lost and dont understand

staceydaisy

Hi all i currently handed in my notice at work whilst on maternity leave. my employer paid my maternity pay in one lump some up to April when maternity was due to end

i have now been heavily taxed on this lump sum and am wondering if i can claim it back the hmrc website is baffling me with the p50 form

please help guys and gals

fengirl_2

Have you left your job? If so, complete the P50 and send it to your tax office with your P45. If you have not left your job, your employer should run you through the payroll each month and the tax will gradually be repaid over the next few months. I have never heard of all the maternity pay due being paid in one lump sum!

SonniC

Stacey

An Employers liability to pay SMP does not end when the employee leaves. This is why the employer has paid the unpaid maternity pay as a lump sum payment.

However, paying SMP in this manner attracts higher tax/NICs deductions.

As you have been paid SMP to April you will not qualify for JSA and I'm assuming that you have not started work with another employer. In this case you should tick the "I do not expect to go back to work" box on the declaration, complete your personal details and enclose your P45. To minimise any unnecassary delays it may help to include a brief note saying that you terminated your employment whilst on maternity leave and received a lump sum maternity payment.

Hope this helps