SSP and tax?

mishellyo

Hi, I am not sure if this is in the right place but i really need some help.

I have been off work sick for the last 8 weeks and have just been signed off for a further 8 weeks.
I have a slipped (possibly ruptured) disc and am in extreme pain all of the time.
My problem is that i have only just recieved my sick pay covering the first 6 weeks ( i am normally paid weekly, 2 weeks in arrears). I have had to fight to get them to pay me this SSP and they have really dragged their feet. On checking the payslip that accompanied this payment i noticed that i have been taxed over £120.
i was under the impression that ssp was not taxable? Can anyone please advise if this correct? I am guessing that i have been taxed as it was paid in a lump sum, but this is not my fault, i informed them and sent in the paperwork on the first day of my illness and they chose not to pay me on time. If it is the case that i have been taxed due to the lump sum what can i do?

I am already getting £200 per week less than normal (although my bills are still the same), my medical costs are also quite high, an average of 4 prescriptions per week, visits to the hospital and doctors as well as physio. It always amazes me how people are expected to manage in these situations.

Also I was unable to take out emloyment insurance as i work on a temporary long term contract.

Sorry for rambling but i wanted to give as much info as possible.

thanks in advance for any help. x

McKneff

SSp is taxable and as you say you have been taxed a lot because of this lump sum, however it will work itself out through your payroll,
you will probably get a rebate over the next few weeks.

Hope you recover soon

LittleVoice

mishellyo wrote: »

. . . my medical costs are also quite high, an average of 4 prescriptions per week, visits to the hospital and doctors as well as physio.

Are you paying for each prescription individually? If you are, buy a "season ticket". See http://www.nhsbsa.nhs.uk/1127.aspx

Uncertain

mishellyo wrote: »

i was under the impression that ssp was not taxable? Can anyone please advise if this correct? I am guessing that i have been taxed as it was paid in a lump sum, but this is not my fault, i informed them and sent in the paperwork on the first day of my illness and they chose not to pay me on time. If it is the case that i have been taxed due to the lump sum what can i do?

SSP is taxable however if it were your only income for a long period your annual income may drop below the tax threshold so, under those circumstances it would be tax free.

PAYE is a weird and complex thing but SHOULD work out correctly over a longer period. Obviously if, over the year, you have paid too much tax you will be able to claim it back but that doesn't help in the short term.

If you were to be off sick long term (more than 28 weeks) you would move onto ESA which, although still taxable, is paid gross directly to you.

chrisbur

As has been said SSP is taxable though if that is all you are getting it would usually be below the level at which tax is deducted. If you were on a cumulative tax code then after a period of not recieving payments you would have built up enough tax free allowace for no tax to be paid.
What is your tax code number and basis (this usually appears after your tax code)?
Is this job your only income?
Did you recieve any payments from your employer while waiting for the SSP to be decided on?
Has NI been deducted?

McKneff

I dont think NI payments are refundable unfortunately

chrisbur

McKneff wrote: »

I dont think NI payments are refundable unfortunately

It is my belief that if NI was deducted from this payment a good case could be made that it was wrongly deducted, either on the grounds that as the payment was made late it should have been treated for NI calculations as six seperate weeks, or as it covered six weeks pay it should have been worked on a six week pay period not a one week pay period. Not a guarenteed certainty but it is my belief that extra NI would not be required just because an employer made a late payment.

mishellyo

Thanks for your responses guys. This is my only income and it is not enough to cover my bills beforee tax never mind after. I have worked my whole life and feel completely let down by the system.
@ Chrisbur - no i recieved no payments whatsoever for 6 weeks the money came in last week and went straight out as i had obviously built up a lot of debt and it didn't even cover half of it. :-(
Do't know how i'm going to cope.

Thanks again for all your help.

Uncertain

McKneff wrote: »

I dont think NI payments are refundable unfortunately

Maybe not by the DWP.

However if the employer has been given the correct information but deducted the wrong amount of NI then they would be responsible and must make it good.

chrisbur

mishellyo wrote: »

Thanks for your responses guys. This is my only income and it is not enough to cover my bills beforee tax never mind after. I have worked my whole life and feel completely let down by the system.
@ Chrisbur - no i recieved no payments whatsoever for 6 weeks the money came in last week and went straight out as i had obviously built up a lot of debt and it didn't even cover half of it. :-(
Do't know how i'm going to cope.

Thanks again for all your help.

If you have paid tax on this payment after 6 weeks with no earnings then it looks like you may be on a week 1 basis for your tax code, can you advise total earnings so far this year tax paid and tax code? After your tax code on your payslip there is usually a tax basis may be something like 1 or 0 ot wk1 or non-cumulative; what is it on your slip.

Sorry cannot really give any advice on anything else except to suggest you try the benefits forum or citizens advice there may be some benefit that would top up your SSP but not something I know a lot about.