Tax Refund

Labradoodle11_2

I am currently on maternity leave from work but receive full pay until 31st December 2006. After that I go onto SMP at £108 per week for 10 weeks before I go back to work. Does anyone know if I shall qualify for a tax refund once my wages stop. I normally work full time and I do not qualify for tax credits.

krisskross

Don't think there will be a tax refund. Your SMP will take up all your personal allowance, in fact you may have a tiny tax liability on it.Ah just read the 10 weeks bit. That will take you to middle March, so you may get a very few coppers from the Revenue.

Bossyboots

Your tax allowance is apportioned over 12 months, so in theory you should be entitled to some back as you will have paid tax in the early part of the year on the basis of a larger income than you will end up receiving. If you put your monthly pay and tax code up, it should be possible to work it out for you.

krisskross

Bossyboots wrote:

Your tax allowance is apportioned over 12 months, so in theory you should be entitled to some back as you will have paid tax in the early part of the year on the basis of a larger income than you will end up receiving. If you put your monthly pay and tax code up, it should be possible to work it out for you.

Sorry if I mislead. I was under the impression that our tax free allowance was the same each month, therefore I thought you would need to earn under this allowance in any given month to trigger any refund.

Bossyboots

krisskross wrote:

Sorry if I mislead. I was under the impression that our tax free allowance was the same each month, therefore I thought you would need to earn under this allowance in any given month to trigger any refund.

You are right and that is what I meant but couldn't get it into simple words so over complicated it.

Going to get a cup of tea now and maybe my brain and fingers will work together to type something more coherent.

zoezoe_3

You probably would get a small refund.

The IR use your monthly salary to guess how much tax you might have to pay for the whole year and then take 1/12 in tax for that month - this is called Pay as you earn.

Maternity pay is still tax deductable but it will probably leave you as having earned slightly less than they thought and you might get a refund, it will depend really on what your earnings are for the year.

You could work this out using your income for the year, tax allowance and looking on your payslip to see how much tax you have paid to date.

zoe