Maternity, am I entitled to a rebate?

loopylisa87

Hi, I am currently on maternity leave on SMP only, my Tax code is 810L and this month my tax effectively paid me £34.80.
I may have misunderstood this but annual tax free allowance is £8105, divided by 12 is £675.42 per month, I earned £541.80 and paid £39.55 pension (which is taken pre tax) my tax was -£34.80, I still make a discrepancy of about £100. Have I misunderstood this or am I still entitled to a rebate? I have been employed for the whole tax year and usually pay circa £300 tax a month.

Many thanks

molerat

You need to look at your pay slip and see total pay to date - total pension to date (may be a figure taxable pay to date) then deduct 7430 from that (675x11) and multiply by 20%. Compare that figure to the total tax to date. This month you have earned -£173 taxable @20% = £34.63 tax refund.

loopylisa87

there is a difference of £159.49, what does that mean?

loopylisa87

sorry, posted that before your edit, I understand, thanks for your help

chrisbur

loopylisa87 wrote: »

Hi, I am currently on maternity leave on SMP only, my Tax code is 810L and this month my tax effectively paid me £34.80.
I may have misunderstood this but annual tax free allowance is £8105, divided by 12 is £675.42 per month, I earned £541.80 and paid £39.55 pension (which is taken pre tax) my tax was -£34.80, I still make a discrepancy of about £100. Have I misunderstood this or am I still entitled to a rebate? I have been employed for the whole tax year and usually pay circa £300 tax a month.

Many thanks

I think that you are misunderstanding how tax rebates are worked out. As you say you have taxable income of (541.80 less 39.55) 502.35 which is under your tax allowance for the month. Tax allowance is as you say 675.42 and less the 502.35 leaves 173.07. The rebate that you get is the tax you paid on this IE 20% so you get back 34.60. The 20p differance will be due to the actual figures being done cumulatively rather than on a month 1 basis as I did them.