Maternity Pay Tax & NI

taliwillow

Hello all,

I am wondering if anyone can help. I am due to have a baby in November and I am having a bit of a panic that we won't have enough money to cover our basic bills when I am on maternity leave so I am considering refinancing one of our loans to a longer term to lower our monthly payments. Now I know this isn't the best option long term (and I was so looking forward to seeing a loan finally being paid off) but at the moment I feel the short term is what I need to consider.
I am trying to work out how much income we will have while I am on maternity but can't really find much information on how much tax and NI I will be charged while on SMP. I can find what the amount is before tax etc (about £480 per month) but have no idea how much to expect after tax. I have included it as around £325 in my budgeting but am hoping that it won't be any less than this. I also can't seem to find how much child tax credit is when you have a child under 1 but I was sure it was more than the £800 per year that the tax system is saying we will be entitled to.
Any help or advice would be appreciated.
If you got this far, thanks!!

Regards
Taliwillow

tigtag02

providing that you are on a 522L tax code and you have not earnt sqilllions at the year to date in Nov you will pay roughly:

£8.80 in NI and £5 in tax - so you have grossly under calculated which is always good

Also depending on your salary to Nov you may even be due some tax back - even better

HTH
tigtag

heather38

the baby element of ctc is £545 or it was last year when i first claimed it.
and i'm sure i only paid about £15 pm in tax/ni on my mat pay of £108.85 pw.

tigtag02

SMP is £112.75 pw

taliwillow

So does the £545 baby element get added on to the £800ish that they say we are entitled to or are they over estimating by saying £800 and we will actually only get £545?

heather38

where did you get the £800 quote from? was it from tax credits or entitleto.com?

taliwillow

It was from the tax credits website.

poppyscorner

taliwillow wrote: »

It was from the tax credits website.

Tax credits website calculates your allowance assuming you claimed today when in actual fact what you will most likely receive is £545 child addition for having one child and £545 for having a baby under 1 yrs old annually £1090 the TC website will be giving £800 as it is July now and the other 290 would already have been paid to you. I hope that makes sense to you I always find www.entitledto.com a far better site to calculate TC and it is really accurate to.

HTH a little good luck with the baby