Tax during maternity pay

cattermole

You will pay 20% tax on your SMP because by the time you get to it your personal tax allowance is well used up.

I can't calculate the tax you will pay over the year exactly because I'm assuming you will be paying into the LGPS as well? And any contributions are taken off gross pay before you are taxed so it will reduce the amount you are eligible to pay tax on? The new LGPS 2014 is on a graduated % according to salary, details of the percentage for your salary band will be on your LGPS website.

But on the overall income you have given you will pay 20% tax on your SMP.

You might find this calculator more helpful overall. Because you can factor other things into it like pensions and NI contributions as well.

http://www.thesalarycalculator.co.uk/salary.php

dufusmoose

I'll give it a go! Many thanks for your advice

cattermole

Although it will have aggregated your tax code over the year to that point i.e. it will have given you £833 a month tax free.

So by month 7 it will have given you a tax free amount of £5183 assuming you are going to earn the same for the rest of the year.

£21656 is what I make for your gross income for this tax year on those figures.

At month 7 you will have paid tax based on a projected income of roughly averaging the earnings to that point at £32000.

So it will then readjust as you will have paid tax based on that income at that point. Leaving you roughly half your tax code unused at that point. So in reality and these are rough figures you will have paid £2566 tax by month 7.

But because you will then only earn 21,656 for the year including the SMP your tax overall for the year will be £2331.

So although you are paying tax on the SMP you will have already paid it.

They are very rough figures because I haven't factored in the pension contributions.

cattermole

Your welcome! It took me ages fiddling around as I was using the laptop calculator lol.

Wishing you all the best with your new and I'm assuming first baby

chrisbur

dufusmoose wrote: »

I think I'm beginning to understand!
These are approx figures for my pay during this tax year:

April: £3141
May: £3090
June (maternity pay starts) £3090
July: £3037
Aug: £2250
Sept: £2116
Oct: £1932
Nov - March 2015: Approx £600 a month (SMP only)

If you want month by month figures assuming tax code of 1000L take £834.09 and deduct from months that are greater than this. Divide the result by 5 and that will be the tax deducted give or take 20p or so.
Months that are less than £834.09 take the wage figure away from the £834.09.
Divide the result by 5 and that will be the tax rebate figure that is added to the gross, give or take 20p or so.

If the pension is deducted before tax is calculated you can knock that off before doing the sums.

chrisbur

blondebubbles wrote: »

Based on this figures and a tax code of 1000L I'd get:

April: £3141 Tax £461.20 NI £297.36
May: £3090 Tax £451.20 NI £291.24
June: £3090 Tax £451.20 NI £291.24
July: £3037 Tax £440.60 NI £284.88
Aug: £2250 Tax £283.20 NI £190.44
Sept: £2116 Tax £256.40 NI £174.36
Oct: £1932 Tax £219.60 NI £152.28
Nov: £600 Tax £46.80 (rebate) NI 0
Dec: £600 Tax £46.80 (rebate) NI 0
Jan: £600 Tax £46.80 (rebate)
Feb: £600 Tax £46.80 (rebate) NI 0
Mar: £600 Tax £47 (rebate) NI 0

Not sure about the NI figures, there was a suggestion earlier that OP may be in a pension scheme that is probably contracted out.

OP to confirm are your NI deductions on table A or D. If not shown can you give an example from payslip for last tax year, just need the gross pay and employee's NI figure.

fluffymovie

I am in the same position and work for an LA. I have received a letter from my payroll setting out what my net will be for each period.

My baby is also due in June but I am only able to afford 6 months off!