Lump Sum Maternity payment can I claim tax back?

angrybird1234

Hi all
Really hope someone can help.
I've been paid remaining holiday, last months salary,company enhanced mat pay and then rest at SMP in 1 lump sum. I'm taking 6 months off till June.

However after tax & nat insurance, it's significantly less than I'd planned, I'm assuming as the lump sum paid in 1 month takes me into the higher tax band?
Basically my lump sum would have been over 1/3 of my annual salary so huge amount more than my monthly income. A massive amount ha been taken in tax/NI.

Happy to share exact figures if anything thinks they could please advice? As seems unfair to be taxed so highly on 1 amount that is meant to keep us going for 1/2 year. Thanks :beer:

agrinnall

You should be able to reclaim overpaid tax, normally it's done at the end of the tax year but I believe you can state that you won't have more earnings before then and claim early. There may be something helpful here.

chrisbur

The form you need is a P50 at
http://www.hmrc.gov.uk/pdfs/p50.pdf
which will allow you to reclaim any overpaid tax if you will have no taxable income between now and end of tax year.
Unfortunately the extra NI paid as a result of the lump sum payment cannot be reclaimed. The employer was silly to pay like this as both you and your employer have paid extra NI as a result.

angrybird1234

Excellent thanks so much both!

dano17439

unless your company process your pay next month at £0.00 and if you are on a culmative tax code, you will get a tax rebate via your employer

jamesml

I would ask why you've been paid in a lump sum - as has been said both you and the employer are paying additional NI as a result!