SMP - Maternity Pay

Abbie1989

Hi All,
I wondered if anyone could help me. I am due to go on maternity leave at the end of May, with my first child due middle of June and I have a question around SMP. 
I have read that I will be subject to pay tax and national insurance on my SMP but can't seem to find anywhere that can confirm roughly how much this would be.
My package with my work is 6 weeks at 90% pay, following by 33 week at SMP.
I have used the Government calculator to confirm how much I will be entitled to, but its not clear whether and how much tax and national insurance will be taken, could anyone help confirm the best way to do this - or does the calculator from the government website already take this into account?
Being a new tax year, I will be under the tax free bracket when I do start my maternity leave - but in general I pay 20% tax.
Thank you!

chrisbur

Your SMP is treated exactly the same as your usual earnings for tax and NI.  If the SMP falls above the tax and NI limits you will pay tax and NI, if they fall below the limits then no NI is due and if you have paid any tax in the current tax year prior to being paid SMP then there would be a bit of tax rebate added.  

Can give a better indication if you wish to give exact figures.

EDIT
The GOV.UK calculator gives the gross figure for SMP it makes no adjustment for tax/NI indeed that would be impossible as each persons tax/NI situation would be different.
The calculator is excellent though the site is misleading as is often the case with GOV.UK where it advises....
"Tax and National Insurance will be deducted."
Tax/NI will only be deducted if the SMP is high enough for tax/NI to be deducted.
As said earlier in many cases there will be some tax refunded while on maternity leave.

Abbie1989

Perfect thank you so much!

I am currently on £34,000, paid last working day of the month - paying 20% tax. 

I will be starting my actual maternity leave with my company from the 13th of June - (90% pay will kick in for 6 weeks).
Do you require anything else at all?

chrisbur

I am assuming that you are on tax code 1257L and I have rounded the figures somewhat 
Your usual monthly pay for £2833 which gives £357 tax and £266 NI
A 90% month would be £2550 which gives £300 tax and £229 NI

Of course the first month will be a mixture of normal and 90% so that will fall somewhere in-between.
There is also the complication that SMP is a weekly payment and you are paid monthly.  Your employer might pay the same each month based on an average month or pay some months at 4 weeks some at 5 weeks.  In the end you will get the same, to keep the figures simple I have used an average month. Again there will probably be a month when you get part 90% and part basic SMP 

A basic SMP month (156.66 times 4.3 rounded) will give you
£674  there will be no NI deducted and £75 tax will be refunded.  This refund will continue until all tax paid this year has been refunded to you or your earnings increase to  the point where tax is again deducted.  

Has your employer advised you of the monthly figures you will be getting; this was what I used to do when in payroll and also to remind the employee of circumstances that they had to notify while on mat leave, though I don't think they have to do that.

  

Abbie1989

Thank you so much, this is really helpful!! I appreciate you taking the time to break this down for me.
I have asked my employer about tax and NI deductions before, but to be honest they weren't the most helpful and just said I might receive a refund, I might not. 

Now I feel I have more of an understanding on this and what to expect this is really helpful. I will definitely ask to see if they can provide me with some monthly figures and ask if I will receive SMP based on an average month of 4 weeks or 5 weeks. 

Savvy_Sue

I would be astonished if their payroll system didn't calculate what you'd be paid each month while on maternity leave. However, they might not want to produce the figures too soon (although with the system we use, there's no reason not to do it a few months in advance). 

Our system pays 4 weeks in some months and 5 in others, depending on how many SMP 'weeks' fall between two pay days, if that makes sense. Be aware that it's subject to change: my last mum had baby a day before she'd intended to start her maternity leave, and everything changed ... 

Abbie1989

Thank you!! Yes, completely understand that anything could change until the little one actually arrives.