Redundancy/Maternity SMP payments

sophiasmum

Hi - wondering if anybody can advise.
I was made redundant 17th April and received all of my payments 25th April - including bulk SMP payments as I was 32 weeks pregnant. This line appears on my payslip as : Statutory Maternity @ £3730.86. As far as I am aware SMP payments should be tax free - if I had had these payments monthly while employed, I would not have paid tax on them? However in my final pay - I have paid tax on the £3730.86.


Am I correct? I have spoken with my ex employer and they are shrugging their shoulders about the situation. How can I retrieve the tax? Has anybody got any experience of this?


Thanks

purdyoaten

sophiasmum wrote: »

Hi - wondering if anybody can advise.
I was made redundant 17th April and received all of my payments 25th April - including bulk SMP payments as I was 32 weeks pregnant. This line appears on my payslip as : Statutory Maternity @ £3730.86. As far as I am aware SMP payments should be tax free - if I had had these payments monthly while employed, I would not have paid tax on them? However in my final pay - I have paid tax on the £3730.86.


Am I correct? I have spoken with my ex employer and they are shrugging their shoulders about the situation. How can I retrieve the tax? Has anybody got any experience of this?


Thanks

You are incorrect - statutory maternity pay is taxable income.

http://www.hmrc.gov.uk/manuals/eimanual/eim76360.htm

getmore4less

was it paid s week1/month 1 of the tax year.

what was the total pay and tax on the P45

as it was all paid in one lump it would be taxed, where it may have resulted in lower tax if paid monthly so you may be due some refund.

You will need to review at end of tax year, or it might sort itself out if you get another job or claim JSA.

JSA is also taxable.

sophiasmum

Thanks - yes was paid week1/month1 of tax year. P45 says Total pay = £15210.63 and Total Tax = £5342.36


I don't intend to earn anything else this tax year....


Thanks both for your help

chrisbur

sophiasmum wrote: »

Thanks - yes was paid week1/month1 of tax year. P45 says Total pay = £15210.63 and Total Tax = £5342.36


I don't intend to earn anything else this tax year....


Thanks both for your help

If you will not be getting any taxable income for rest of this tax year then complete a P50 details here....
http://www.hmrc.gov.uk/pdfs/p50.pdf
Remember to tick the last box at the end.

sophiasmum

Thanks Chrisbur