Half a year on Maternity pay, do I get a tax rebate?

Mimitheminx

Hi,

I am currently on Mat leave-which i know is untaxable-and I am due to go back to work in August. From August until April (so 33 weeks) I will have earnt 8050 and my tax code (and allowance?) is 810L. I have had a go on the calculator on here and it says I won't pay any tax for the year. Firstly, is that right? and Secondly if that is the case does that mean it will have already been worked into my wages or I will be due a tax rebate? I am thinking rebate?

innovate

If you receive Statutory Maternity Payment (SMP), tax and NI are due on it. SMP is only excempt from tax and NI if it is your only income in an entire tax year because it amounts to less than your personal allowance. It is possible/likely that your employer pays you the SMP net of the basic tax and NI.

Your allowance for the current tax year (2012-13) is £8,105. expressed as tax code 810L. Last year (2011-12) your allowance was £7,475, you probably had tax code 747L then.

Assuming your earnings of £8,050 are for August 2011 to April 5 2012, and you had no other earnings in the 2011-12 tax year, you will have to pay tax on £8,050 - £7,475 = £575.

If you mean you will be earning a total of £8,050 from April 6 2012 to April 5 2013, you won't need to pay any tax since you will earn £55 less than your allowance. However, if you earn more than £8,050 in 2012-13 (e.g. £8,050 plus SMP), you need to pay tax and NI.