What happens to my tax payments if I am paid my maternity pay in lump sum as made redundant?

Question

I have been made redundant and have read that I may be paid my maternity pay in a lump sum and this will mean that I have to pay more tax and Ni...... any idea on how to work this out and how to 'contest' it?

Answer 1

Your tax is calculated over the year.

Answer 2

You may be able to contact HMRC and get a refund. To me this sounds like emergency tax, which unless you take on more work in the year and boost your earnings massively I don't think they can justify keeping. Have you started your maternity leave yet? It sounds like you haven't, in which case your employer owes you.

Here's a link that may be useful:

http://www.direct.gov.uk/en/MoneyTaxAndB...

It's important to make the claim soon.

EDIT - Try this one too:

http://search3.openobjects.com/kbroker/h...

Good luck! :)