Income forecast during/after maternity

MysticDad

Me and my partner are expecting our first child at the end of November

We both currently work full time and I've been trying to work out how our income will change over the next 2 or 3 years.

First of all the reduction in income while my partner is on maternity leave, and then how much it will cost for her to return part time (3 or 4 days per week).

I'm a reasonably intelligent bloke but trying to work this out is a nightmare! For example:
- We are paid monthly but Child Benefit & Stat Mat Pay are weekly
- My partners wage will intitially drop to 90%, then to 50%+SMP, then just SMP.
- Any change in wage also changes the amount paid in Tax/ NI/ Pension/Union fees/ Student loan
- And after 9 months we will need to think about childcare (we are both eligible for childcare vouchers, although I understand the scheme is changing in 2017)

I've seen plenty of "manage your budget" tools in relation to expenditure (we are fine at managing spending), but nothing in relation to the rollercoaster of income over and after maternity leave.

So, basically, has anyone made a magical webpage/excel sheet, or will I have to try and create my own?

Jojo_the_Tightfisted

Why not just copy the format to a worksheet for each eventuality? (eg Sheet 1 for Maternity Leave 90%, Sheet 2 for 50% + SMP, etc). It'll be quicker than searching for something most people interested would be too busy/tired to work out the formulae for...

(and if I remember rightly, CHB might have a weekly entitlement, but it'll go into the bank once a month, after they've dealt with your claim, so you won't get the same payment until that's sorted out)..

But do bear in mind that childcare in the early years can be incredibly expensive - that extra day of work might be less profitable than you'd initially think.


Congratulations, though!

FreddieFrugal

I've done similarly to you. I already had a budget spreadsheet that I made myself - section for income, section for outgoings - so I just copied the sections and pasted a couple of new ones - one for baby up to first year, one from when they start childcare and OH is back at work, and one for when they start school.

For maternity leave - I made a couple of sections - OH's weekly pay ((monthly x 12)/52) weekly pay at 90%, at 50%+SMP and at just SMP. Then my pay, and also child benefit.

Input number of weeks and do a formula to add it all together - it's quite simple. Remember to include any weeks unpaid. You want a total amount for the entire maternity leave - then divide it by the number of months to get a rough monthly income - then takeaway your monthly expenses from budget sheet and that should give you your balance.

SMP is taxed - however it's likely that she'll end up getting a tax refund at some point - I just assumed for the sake of the spreadsheet that she'd have the same NET% from SMP as her current pay.

Kynthia

I didn't do this but what I did so is use a spreadsheet to accurately calculate our take home salaries. This needed to factor on all deductions made before and after tax and NI, such as childcare vouchers and pension deductions. This then allowed me to see the affect on take home pay of all different part time/full time/compressed hours combinations.

Due to tax each day off doesn't lose you the same amount of take home pay and after all the deductions you might not lose as much for tge first day off as you think. So both of us going 4 days a week, if your employers allow it, gave us the most income. Plus it made it easier to compare what you bring home each day you work compared to the daily cost of childcare.

MysticDad

Thanks for all your advice. I've been persevering with the spreadsheet and think I've almost got it worked out.

The period when my partner's just on SMP will be pretty tough, but it does look like we will be able to afford for her to take 9 months maternity and then go back to work 4 days a week

I'll share the spreadsheet template so that I can save a bit of work for others in similar situations in the future

Top_Girl

I work for the local authority and pay NJC staff and we pay weekly along with SMP once that kicks in, to make things easier on both parties, so we will pay 4, 4, 5 week months normally. Phone her HR, they should be able to tell you how they pay it and might even send you an early schedule (we don't).

There are income calculators online, including on here, which will give you deduction figures. Your union will have pay bands and your pension scheme pay bands and percentages so you can work those out yourself.

From what you've said, it sounds like your partner might be NJC? Check and see if they pay childcare fees if her wage finishes. If so, sign up in her last month of salary and these will accumulate if she is on zero pay.

MrsSave

Congratulations! My little bundle is due in December.

I don't know if it will help, but I use the website the salary calculator, and that works out how much tax, ni, loan, pension, etc I will be paying.

I also find the government page 'maternity entitlement' useful for giving a good indication. It's for employers and not employees, but I find it gives a good guide.

psychopathbabble

Just to check, will she definitely get 50% plus SMP? I will only be getting 50% for 3 months and then SMP so double check in case you are overestimating


For my part-time hours, I took my annual salary, divided it by 5 (number of days I currently work) and multiplied by 3 (the number of days I plan to go back to work) to get my annual salary estimate.

Finally, with child benefit, depending on your salary, it may not be worth having in the first place. My DH earns enough that we would have to pay it all back except 20p each year so I'm not going to bother even claiming it.

PS while the childcare voucher scheme will be changing, it will remain the same I believe if you are already signed up to it.

clairec79

I would hazard a guess that she works for the NHS as thats 90% for a few weeks, then 50% + SMP until 6 months

psychopathbabble

clairec79 wrote: »

I would hazard a guess that she works for the NHS as thats 90% for a few weeks, then 50% + SMP until 6 months

Lucky for some then

cyantist

Congratulations!

This spreadsheet/calculator is something that would be really useful for me in figuring out how much I need to save. Can you share the template mysticdad?

psychopathbabble wrote: »

Finally, with child benefit, depending on your salary, it may not be worth having in the first place. My DH earns enough that we would have to pay it all back except 20p each year so I'm not going to bother even claiming it.

I don't understand this. Can you explain please?