Can anyone please advise

narabanekeater

Im in a real mess
Work have paid me a some of money (all of my start maternity pay) in one go instead of weekly
This has attracted quite a chunk of tax and NI to be taken that I normally wouldnt pay
Is there a way I can apply for the tax back before the end of the tax year and the same with ym NI taken?
Im really needing the money before the end of the tax year
Thanks

Hoddie_2

As above, your employer should do this the correct way - they don't have a choice about it. If they refuse, speak to both HMRC and ACAS who will tell you your options.

chrisbur

Hoddie wrote: »

As above, your employer should do this the correct way - they don't have a choice about it. If they refuse, speak to both HMRC and ACAS who will tell you your options.

Unfortunately the employer seems to be allowed to pay in a lump sum, link below from DWP website

http://www.dwp.gov.uk/advisers/ni17a/smp/smp_15.asp#howsmp
"Your employer can pay SMP as a lump sum, as long as the rules for paying NI contributions are obeyed. But if you are paid SMP in a lump sum you and your employer could pay more in NI contributions than if you are paid monthly or weekly."

This warns of the increase in NI which for the employer means paying 12.8% on the total above £100 while if paid weekly it would be 12.8% above £100 for each week. So over 39 weeks they would save 12.8% of 38 time £100 which I make £486.40. Similar figures would apply if paid monthly.

Hoddie_2

They can only pay a lump sum if the employee agrees. This clearly is not the case.

narabanekeater

Thanks each of you for your advice
Im really stuck on this one as its cost me over £1000 that I cannot afford to loose and am now in the situation that I cannot afford to send my daughter to nursery
Im entitled to £95 a week SMP and because of the deductions I have got approx £65 a week which is approx 30% im down
To explain the situation furhter this has occured because my company was brought out and the new compnay stated that the old company should pay me and anyone pregnant in full so theres lots of us all in the same situation
I was not told this would happen to me indeed I was told I would be paid weekly as my SML commenced when the new company employed me
But there also now saying because I sent my MATB1 (pregnancy confirmation) to my old employer which I had no choice to do as they employed me at the time I had to be paid by then. This pregnancy confirmation was send approx 3 months ago at least as you get given them while pregnant.

Babysittah

jimmo wrote: »

I am afraid the only chance you have of sorting this out this year is convincing your employer that he has got it wrong.
You will need to repay him all the excess and he should pay you your SMP entitlement on normal pay days.
If you cannot convince your employer to put this on a correct basis then:
For Income Tax you are still an employee whilst on maternity leave and your employer has to continue operating PAYE on a normal basis. Each payday he must record your earnings for the week/month as nil and your PAYE record (with your employer) will show an overpayment which he must repay.
One way or another, by the end of the Tax year your tax will balance out.
For NI I am afraid that I claim no expertise but believe that all that matters is when you are paid the money. As you have been paid the money on a particular day it has to subject to NI for the particular pay period. For NI that is the end of the matter and there is no further “balancing of the books” during the year like there is for Tax.
I am afraid that if you look to the Tax Office for help now you really are likely to run into a brick wall because they will not have any official information on what you have been paid and what tax and NI have been deducted.
They won’t get the details until after the end of the tax year when your employer makes the annual Returns.
Your employer has definitely got it wrong.
I like to think that most employers don’t want to impose hardship on their employees and yours will sort this out for you pretty quickly.
If you need a persuader try;
He’s paid you too soon and need not have paid out yet. The money could still be in his bank account.
As you are still an employee he still has to operate PAYE each payday and give you the appropriate tax refunds.
(I really don’t know on this one.) Maybe by paying the whole Maternity Pay in a lump sum he has incurred a higher employer’s NIC contribution.

I agree with that!

Hoddie_2

My advice would still be to talk to ACAS. If your employer needed your agreement to pay you the SMP in a lump sum, ACAS will confirm this for you and tell you your options.