Maternity Leave and Reclaiming Tax

mikey_D

Hi I wander if somone may be able to help as I can't find much information,

We are expetcing ar 1st Child in September, my wife isa higher tax earner and will have piad a significant amount of tax by the time she goes on maternity leave, when her pay will drop to SMP in Mid October + car allowance of approximately £300.00 my question is she will have paid tax based on a highraet salary (40%) for the year, which she will be nowhere near in the end, will the taxman alutomatically allow a reduction/suspension of her tax and NI until she is eligable to pay it again, or will she need to claim it back at the end of the tax year in april, or can she do this when SMP kicks in. Any help would be appreciated.

fengirl_2

'The taxman' does not operate PAYE on your wife's pay - this is done by her employer who will automatically make tax refunds each month when they run the payroll. By the end of the tax year she will have paid the correct amount of tax.