Returning to work Pay

[tiggerblue10]

I've been officially signed back at work as from yesterday. My manager has closed off my maternity and I am now on annual leave for 6 weeks (using up last years leave allowance). What I would like to know is whether my tax deductions/code will change. My mum said that it would.

Can anyone advise me what happens to pay/tax when you return from maternity.

Thanks

[boxtops]

You are very close to the end of the tax year now, so the taxman might well send you a new code soon, to take account of the period when you were not earning. When did you go off on maternity leave? that might make a difference.

[bednobs]

did it change when you went on maternity?

[factor-fiction]

Depending on when your maternity leave started there may be a tax rebate due for this tax year, although this may well all be sorted out in your March 2011 payslip. Thereafter your monthly tax will be similar to what it used to be before your maternity leave

[bednobs]

i only ask because my tax code remained the same (i think!) while i was on six months mat leave.
The only thing that would have been different from normal for me was that once you down onto purtely smp or unpaid leave, you dont pay pension anymore, and you have to make it up on return

[tiggerblue10]

My maternity started on 12th May 10 Box. I was only going to take 9 months but then decided to take a further month for which I am not getting paid for.

I'll have to check my pay slips Bednobs.

[factor-fiction]

Yes the tax code will probably stay the same but because of the way the tax allowance was initially spread over the year and tax was deducted on the assumption that your pay would be continuous, you will probably have overpaid tax and your tax deduction will be adjusted in March. You may pay no tax at all for March, or you may even get a rebate depending on your earnings and tax to date

[tiggerblue10]

Just checked my payslips and for 6 months it remained the same and then when I went down to reduced pay for the next 3 months it was reduced.

Does it depend on the tax year Factor? I haven't got a clue about these things as you may have guessed! Lol

[bednobs]

if your tax code reduces, you pay more tax

[tiggerblue10]

So what does the working tax credits that I've been getting cover?

[factor-fiction]

There's a lot of confusing posts/red herrings here about tax codes (red herring), tax going down (that was simply because pay went down) and tax credits.
It's almost certain you will get a tax adjustment in March/ April and my guess is you'll pay no tax for March.
As we can't give precise figures in your case as we don't know all the details I suggest you simply wait and see how much you get when you get paid at the end of March. By your April or May payslip your tax will be back to normal.

[tiggerblue10]

Thanks Factor, I was just wondering.