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Maternity Pay Tax and NI Query

:think::think:I have started Mat Leave from 06/03. I get 8 weeks full occupational pay 18weeks half occupational pay plus after the first 8 weeks I get 30weeks SMP in addition to this.
I have chosen to average the occupational pay over 10 months -43 weeks.

I am trying to work out my net pay for finances.

In the first 8 weeks I am due to receive gross 152.54/week then 292.12 (this includes SMP) per week until beginning of December which then goes back to 152.54 for a further 4 weeks.

This totals 10886.26 over this period (approx 1250-1293 gross per monthly pay depending on number of weeks/days when receiving both OMP and SMP)

I understand I'll still have my 5.6% pension to pay out of all this monthly but as from next month (April) I will be earning under 11,000 tax threshold in tax year 17-18 will I be subject to 12% NI and 20% NI on my monthly wage still?

Comments

  • Can anyone advise?
  • Kynthia
    Kynthia Posts: 5,692 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 1 April 2017 at 8:28AM
    Try this site.
    m.thesalarycalculator.co.uk

    Sometimes tax is taken as the HMRC doesn't know your pay will stop before the end of the financial year, but you can get this repaid. The Cutting tax board may be able to explain it better.
    Don't listen to me, I'm no expert!
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    The personal allowance for 2017/18 is £11,500.

    NIC is looked at each pay period rather than the tax year. You'll pay NIC on anything over £680 per month.
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