How to calculate salary/income on Maternity leave

hairbrain05

How do i calculate my projected earning for the forthcoming year when i'm currently on maternity leave?

I've been on leave for 5wks & I am fully paid for 18 wks then go to SMP. I don't yet know when i'm going back to work but ideally would like to take the full year off.

Do i project my salaray to be the same as last yr (as i've not had any salary increase) minus the difference in income as i'll be on SMP? I also thought i read somewhere that there is an element of SMP that should be excluded from the calculation - anyone know?

Thanks in advance!
x

caz246

Is this for tax credits purproses? If so then yes, you deduct £100 for each week of your maternity. So for example if you received SMP for 39 weeks you would deduct £3900 from your total income figure.

If you are already on maternity leave and plan to take the year off you must have provided your employer with a date you will be due back? If so I would work out your income until that date (your income from start April until your maternity leave started, your income whilst on maternity minus £100 per week deduction and any other income if you plan to return to work before April next year), and you should have your figure.

carebear13

hi- add up any full paid weeks+full pay mat leave+ 21weeks smp. dont forget the tax year goes april to april. you deduct the first £100 of each weeks mat pay so basically £3900.
Did you not have a meeting with your employer to discuss return date, holiday accrual etc?
your employer will normally expect you to take the full year and then you can literally turn up and carry on. if you are not taking the full year then you have to give notice of when you want to return of 8 weeks.
once you have taken all that into account you will know how many weeks will be unpaid mat leave and how much is holiday and then gives you your income.

hairbrain05

thanks!! no i haven't yet been asked to give a return date? i went on mat leave on Fri 4th May.

does this sound correct way to work it out?

wkly earnings for the 4wks of the tax yr whilst i was still working, plus the 18 fully paid wks....

as there are then 30 wks remaining of 2012/13 period i've multiplied £35.35 (SMP minus £100) x 30

the total of the above calculations... divided by 12 months or 52wks...

thanks again!
x


x

carebear13

hi- i'm surprised your work hasnt asked for a return date.
mat pay is only for total 39 weeks including your fully paid weeks. the easiest way to do it is to take off £3900 from your full years wage. then add on any annual leave that you take (if you are). dont divide anything. you dont need an average. tax credits will want your income and your hubbies.

hairbrain05

thanks Carebear - sorry for being dim...

should i subract the £3900 from the total years salary for 2011/12 - or subtract if from the projected earning for 2012/13 (as i won't be paid after wk18)?


x

worry-wart_3

hairbrain05 wrote: »

thanks!! no i haven't yet been asked to give a return date? i went on mat leave on Fri 4th May.

does this sound correct way to work it out?

wkly earnings for the 4wks of the tax yr whilst i was still working, plus the 18 fully paid wks....

as there are then 30 wks remaining of 2012/13 period i've multiplied £35.35 (SMP minus £100) x 30

the total of the above calculations... divided by 12 months or 52wks...

thanks again!
x


x

Not quite I think.

4 weeks to May 4th > full salary
18 weeks > full salary - £100
21 weeks > SMP - £100
9 weeks > zilch bar any benefits that are used in calculations but I presume these aren't applicable

You can only get SMP for 39 weeks so you only get £2100 allowance for the rest of the year after your contractural maternity pay from work.

carebear13

what allowance??? even if you are on contractual maternity pay you still deduct the first £100 as contractual mat pay is just smp topped up by the employer.

yes you subtract £3900 which is your 39 weeks of the maternity pay that you can deduct as per tax credits.
it's for year 2012 to 2013.
dont forget though to add on any holiday and any weeks that you may earn 'wages' for if you go back before 5th april 2013.

edit: not sure what you mean by not being paid after week 18.
edit again: re read your orginal post- your 52week mat leave doesnt have anything to do with tax years- mine for instance is going over the 2 different tax years.