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Where Taxpayers and Advisers Meet

impact of sabattical on tax/ NI

loubear
Posts: 1
Joined: Thu Nov 24, 2016 12:42 pm

impact of sabattical on tax/ NI

Postby loubear » Thu Nov 24, 2016 12:49 pm

Hi I am considering taking a 3 month sabbatical from my Local Authority employer to undergo IVF treatment. My employer has a policy that will give me the unpaid leave but I am wondering what happens to my tax? NI? Pension contributions etc that year? I earn 36950k and so this will roughly work out as 9k I will be "losing" in pay but obviously I wouldn't take that home anyway. would I still be liable for tax in this period and based on my earnings would I even be due a refund from tax already paid?

I'm probably not making any sense but I want to work out the "cost" of taking a sabbatical.

also will this have any implications on future maternity leave if It was to be successful?

thanks

AmanSood
Posts: 215
Joined: Mon Jan 09, 2017 4:12 pm

Re: impact of sabattical on tax/ NI

Postby AmanSood » Mon Jan 09, 2017 5:56 pm

on the basis you are taking a couple of months unpaid leave, then you will likely be due a tax refund. This will either be corrected in year via the payroll (if you are on a cumulative tax code). Alternatively if you are on a non-cumulative tax code (should say something like M1 on your payslip), you would need to contact HMRC to obtain a tax refund or file a tax return after the end of the tax year. The unpaid leave should not have an impact on your entitlement to statutory maternity leave/pay. Hope all goes well with the IVF.
Advising on UK employment, expatriate and personal taxes
aman.sood@e-taxconsulting.com.
+44 (0) 207 846 0155


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