Partner taxed on income while on maternity?

NIMAN

My wife recently got a statement from the Benefits Dept/her employer re: income paid to her while off on maternity.

She had requested it as someone had told her she would be liable for a tax rebate.

Then called the local tax office to ask about how to go about getting the rebate, only to be told she definitely is not entitled to one, as her income while on maternity is not taxed.

Does anyone have any experience of this whole situation?

Victor

I suspect there are crossed wires at play. I suspect what they were saying is that maternity benefit isn't taxed. However, if substantial tax was paid before the maternity leave and the only income during was maternity benefit, there may be a tax rebate.

At the end of December, get the P60 and complete a tax return. All the piece should come together then.

NIMAN

Thanks for that.

Well what seemed to happen is that she received a certain percentage of her normal wage, with the remainder being made up by maternity benefit.

So I'm guessing that the MB wasn't taxed, but perhaps the wages from her employer (the Gov) were? I remember reading that PS workers are taxed as normal when off on maternity, and then its up to them to apply for a rebate. Obviously the Gov hopes many know nothing about this and don't apply.

I will get her to look into it when the P6o comes.

barneystinson

NIMAN wrote: »

Thanks for that.

Well what seemed to happen is that she received a certain percentage of her normal wage, with the remainder being made up by maternity benefit.

So I'm guessing that the MB wasn't taxed, but perhaps the wages from her employer (the Gov) were? I remember reading that PS workers are taxed as normal when off on maternity, and then its up to them to apply for a rebate. Obviously the Gov hopes many know nothing about this and don't apply.

I will get her to look into it when the P6o comes.

Exactly, the maternity benefit isn't taxed, but the amount she's been paid as wages is taxable. So there's nothing for her to get a rebate of, unless her normal salary is well above the standard rate cut-off point. But even if that was the case, it should be built into whatever amount she has been receiving during her maternity leave. Either way, its something best left til after she gets her P60.

It's absolutely not the case though that "the Gov hopes many know nothing about this and don't apply."

NIMAN

barneystinson wrote: »

Exactly, the maternity benefit isn't taxed, but the amount she's been paid as wages is taxable. So there's nothing for her to get a rebate of, unless her normal salary is well above the standard rate cut-off point. But even if that was the case, it should be built into whatever amount she has been receiving during her maternity leave. Either way, its something best left til after she gets her P60.

It's absolutely not the case though that "the Gov hopes many know nothing about this and don't apply."

Only got into this after reading about the rebate on another famous Irish money forum.

I can provide a link to the thread if needed.

Victor

The Public Sector has a slightly different maternity / illness scheme, so I suspect she may have been paid and/or had her tax adjusted at each payslip. I suspect there won't be a windfall.

barneystinson

NIMAN wrote: »

Only got into this after reading about the rebate on another famous Irish money forum.

I can provide a link to the thread if needed.

Forgive me if I'm being dense, because I'm not quite sure what you mean, but by all means please do post a link. Are you saying that you believe there's some kind of high-level conspiracy to overtax mothers on maternity leave? :eek:

Mr. Incognito

Question asked. Question answered.

Leave the baiting out of the thread please.