Tax and maternity leave

hickles69

I have started to research online but my 5 week old son is rather unsettled

Basically I started maternity leave on 27th March and was TUPE to another company on the 30th. I have received a letter to say that my tax code this year is br. This means I will pay 20% on my £500 maternity monthly pay.

Surely this can't be right? The working get a tax free allowance but I don't on maternity pay? Or is this a re,piracy tax code as the new company didn't receive my p 45 on time?

Sorry no good with tax stuff.

engineer_amy

Did the letter come from the employer, or HMRC?


If the new employer didn't receive your P45 in time, they would have put you on a standard tax code of 1060L (M1), which means you would have been given 1/12th of 10600 each month as the tax free allowance. They should not have put you on a BR tax code without receiving a notification from HMRC.


If the letter came from HMRC, it is most likely that HMRC have received your new starter information from the new employer, but haven't received a P45 from the old employer, so therefore they see you has having 2 jobs, only one of which is eligible to have the tax free allowance. The second job is taxed from penny 1, hence the BR code.


All it should take is a simple call to HMRC employee help line and explain the situation, they are usually quite quick at rectifying the situation and will send out new notifications to you and your new employer. the number is 0300 200 3300

hickles69

engineer_amy wrote: »

Did the letter come from the employer, or HMRC?


If the new employer didn't receive your P45 in time, they would have put you on a standard tax code of 1060L (M1), which means you would have been given 1/12th of 10600 each month as the tax free allowance. They should not have put you on a BR tax code without receiving a notification from HMRC.


If the letter came from HMRC, it is most likely that HMRC have received your new starter information from the new employer, but haven't received a P45 from the old employer, so therefore they see you has having 2 jobs, only one of which is eligible to have the tax free allowance. The second job is taxed from penny 1, hence the BR code.


All it should take is a simple call to HMRC employee help line and explain the situation, they are usually quite quick at rectifying the situation and will send out new notifications to you and your new employer. the number is 0300 200 3300

It came from HMRC I didn't factor they may have thought it to be a second job. I thought I would have a personal tax free allowance like everyone else. I'll ring them one little one is calm. Thank you.

hickles69

All sorted. 45 mins on hold. Told her my code she immediately said that's incorrect and changed it. Took 30 seconds. Thank you