Smp and tax - help??

pods1811

Just wondered if anyone can help me on the whole redundancy and tax thing?

I am pregnant and being made redundant on the 31st March. As I qualify for SMP they have told me they will pay me it in a lump sum on the 25th April.

My question is that normally I pay 40% tax on my wages. However I know the tax year runs from April to April so when I get my lump sum SMP do I have to do something to inform that tax people that this isnt my wages and is the only payment that I will receive in the 2010 tax year? Since the baby is due in June I wont be able to earn any other money this year and will struggle if they take 40% tax off me on the SMP. I think I can earn 7k a year without tax and realise that the SMP payment is just over that so I will pay some tax but hopefully not 40%.

Any help greatly appreciated. I will phone the tax people but just thought I would enquire here too.

Thanks to anyone that can help.

Leah

Newbiesw

Big sigh of relief Pods as it appears to be being paid in the new tax year.
You would only have problems if it was paid in a lump sum before 6th. April then it would have been taxd at 40.
Your timing couldn't be better as it will probably only be 20% even though you are a 40 percenter as that may be the bulk of your income next year.
Depending on whether you take the full year off, you could also get most or all of the 20% tax back as well.

Newbiesw