Pregnant and screwed !

Stma123

I'm currently 32 weeks pregnant and have been made redundant. My payout will be April, the first month of the new financial year. 

 

As part of the payout I will receive…

 

• Statutory redundancy payout (tax free)
• 1 month notice period
• Statutory maternity pay
• 3 x full months salary (as part of an enhanced package)
• 30 days annual leave (as part of maternity package)

 

After advice from the HR team at work I called HMRC to advise them of the payout, in the hope that my tax code will not be affected. 

 

After speaking to HMRC, they have advised that after the tax-free redundancy payout, as this is the first month of the new tax year, I will have the £1,048 tax free allocation but the rest will be taxed in bands, so 20% and potentially even 40% leaving me with… well not a lot. 

 

It was then advised that I can claim a refund but that process can take 3 to 4 months to process.

 

As I’m due at the beginning of May, and had the maternity package security, I was not planning on working for a year. Now I’m starting to worry about finances. Does anyone have any advice?

Mr.Generous

The first £30k of redundancy is tax free, after that you have your annual tax allowance (divided by 12 so a grand each month) You will be entitled to benefits, look into that too.

tacpot12

Your entitlement to benefits is complicated by your pregnancy. 

There is some information here; Money for parents and babies - Maternity Action but you may want to call the Maternity Action Helpline for advice that is more specific to the exact situation you will be in.

LightFlare

https://forums.moneysavingexpert.com/discussion/6581562/tax-on-investments#latest

Generally, if you are posting on someone else’s behalf, it’s good to say you are so respondents are able to best answer

Stma123

Thanks all 
my daughter will investigate . 

chrisbur

Stma123 said:

 

As I’m due at the beginning of May, and had the maternity package security, I was not planning on working for a year. Now I’m starting to worry about finances. Does anyone have any advice?

P50 details and how to claim....
 https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working

A P50 form allows you to claim back tax paid on leaving your job above what you owe as at the end of the tax year; if you do not plan to work for the rest of the tax year.