Anyone know about taxes/finance?

Discussion in 'Pregnancy Chat' started by umbongo, Jun 10, 2013.

  1. umbongo

    umbongo Well-Known Member

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    I've had my letter through confirming my mat leave starts on 26th August. It'll be school hols anyway as work in a school.
    My contract is temporary so finishes on 31st August. I still get smp but they've offered it in a lump sum.
    Not sure if I'd get taxed on it if it's a lump sum? I don't pay tax monthly as my wage is under the threshold. Also, if I take lump sum, will this affect eligibility for tax credits. As I believe on smp you're usually still classed as employed? But if my contract has ended I won't be.
    I'm confused about what to do. Will try and find out, but it's always complicated with taxes and benefits!! Anyone got a clue?
    Thanks xx
     
  2. Vic27

    Vic27 Well-Known Member

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    Hey Hun didn't wanna read an run I'm not entirely sure on this but maybe u should phone citizens advice and ask them as the tax office are a nightmare to get a hold of x
     
  3. Tigger87

    Tigger87 Well-Known Member

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    You might have issues with NI if your paid it in a lump sum, but I'm not sure on the rest. Ill see if I can look it up and get you some answers :)
     
  4. kat1988

    kat1988 Well-Known Member

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    i know u will get taxed on smp, you also have to pay national insurance on it, this should be the same if its paid in a lump sum, although depending on the rest of your wages for the tax year u may be entitled to a tax rebate come next April (sound to me like u will be) it shouldn't effect any tax credits as they're based on yearly income and based on last years tax year anyway,

    I'm not sure whether ud b classes as employed or not, u usually are if on smp, tbh it's probably best to phone and ask to make sure so u can budget xxx
     
  5. k8_005

    k8_005 Well-Known Member

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    Give the cab a ring they will know xx
     
  6. Vicm

    Vicm Well-Known Member

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    As before, if your wage (inclusive of SMP and any other taxable benefit) all added together is less than your personal allowance, which is £9440 for the 12/13 tax year then no you wont get taxed. This is regardless of it being paid as a Lump Sum or not. The tax year is 6 April -5 April, so anything received after 5 April 2014 will go under next tax year.

    You will need to inform HMRC that you have received the lump sum (the benefit office should do this), but as long as you dont go over the £9440 no tax will be payable.
     
  7. Tigger87

    Tigger87 Well-Known Member

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    Also remember national insurance is different - if your "pay period" is monthly, then anything over about £600 ish will have 13.8% deducted and you can't get this back.

    I know umbongo knows this already now, but incase anyone else reads this :)
     
  8. Vicm

    Vicm Well-Known Member

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    Definatly worth bearing in mind. I only know my tax which is why I didnt mention the NI :)
     
  9. JJ Mum

    JJ Mum Well-Known Member

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    Working family snd child tax credits take off £100 for smp each week as they dont class it as earnings but anything above tgat if work tops up etc they do count, hope that helps
     
  10. umbongo

    umbongo Well-Known Member

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    Thanks ladies! I forgot I even posted this! Durrr! Looks like it's a no-brainer to get it monthly as otherwise get stung on NI as well under £600. Xx
     

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