Budgeting for baby

Zola.

Just a question on this:

https://www.gov.uk/maternity-pay-leave/pay

Statutory Maternity Pay (SMP) is paid for up to 39 weeks. You get:

90% of your average weekly earnings (before tax) for the first 6 weeks

£140.98 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks

Does that number get taxed? e.g. is the net value per month £564 or £451 ?

PeacefulWaters

From your link:

Tax and National Insurance will be deducted

Comms69

Zola. wrote: »

Just a question on this:



Does that number get taxed? e.g. is the net value per month £564 or £451 ?

remember that at that rate there is minimal tax to pay (unless you had a very large salary prior)

Zola.

......so is it likely to be £451 then after tax? I have no idea on the tax % for a low figure like that.

If anyone can advise that would be helpful!

gettingtheresometime

It depends on your tax code, taxable earnings prior to receiving smp that no one could possibly give you accurate figures with out a whole raft of info

LilElvis

Ask your payroll department. No-one here knows your tax code, YTD earnings, any other deductions etc.

Comms69

Zola. wrote: »

......so is it likely to be £451 then after tax? I have no idea on the tax % for a low figure like that.

If anyone can advise that would be helpful!

Only if you earned more than £11,000 in that tax year prior to taking SMP.

Zola.

Comms69 wrote: »

Only if you earned more than £11,000 in that tax year prior to taking SMP.

ok thanks....my wife earns just below £40k a year, so its likely that she will be close to that £11,000 limit by the time the baby arrives (end of July), given the tax year starts in April?

Comms69

Zola. wrote: »

ok thanks....my wife earns just below £40k a year, so its likely that she will be close to that £11,000 limit by the time the baby arrives (end of July), given the tax year starts in April?

Indeed, so there will be a small element of tax to pay.


I would be surprised that a position paying £40k, doesn't come with an enhanced maternity package, has she checked?

Zola.

Sadly yes, her base is actually £26,000 but she makes up the difference on commission on contract renewals and sales, the past three years she has earned around £38,000-£40,000.

Comms69

Zola. wrote: »

Sadly yes, her base is actually £26,000 but she makes up the difference on commission on contract renewals and sales, the past three years she has earned around £38,000-£40,000.

ah I see, is she entitled to the commission - it's usually somewhat discretionary.


I mean for contract renewals during SMP