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  • FIRST POST
    • Zola.
    • By Zola. 5th Mar 18, 1:15 PM
    • 1,222Posts
    • 482Thanks
    Zola.
    Budgeting for baby
    • #1
    • 5th Mar 18, 1:15 PM
    Budgeting for baby 5th Mar 18 at 1:15 PM
    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 ?
Page 1
    • PeacefulWaters
    • By PeacefulWaters 5th Mar 18, 1:18 PM
    • 8,320 Posts
    • 10,637 Thanks
    PeacefulWaters
    • #2
    • 5th Mar 18, 1:18 PM
    • #2
    • 5th Mar 18, 1:18 PM
    From your link:

    Tax and National Insurance will be deducted
    • Comms69
    • By Comms69 5th Mar 18, 1:26 PM
    • 2,970 Posts
    • 2,938 Thanks
    Comms69
    • #3
    • 5th Mar 18, 1:26 PM
    • #3
    • 5th Mar 18, 1:26 PM
    Just a question on this:



    Does that number get taxed? e.g. is the net value per month 564 or 451 ?
    Originally posted by Zola.
    remember that at that rate there is minimal tax to pay (unless you had a very large salary prior)
    • Zola.
    • By Zola. 5th Mar 18, 1:31 PM
    • 1,222 Posts
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    Zola.
    • #4
    • 5th Mar 18, 1:31 PM
    • #4
    • 5th Mar 18, 1:31 PM
    ......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
    • By gettingtheresometime 5th Mar 18, 1:34 PM
    • 3,597 Posts
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    gettingtheresometime
    • #5
    • 5th Mar 18, 1:34 PM
    • #5
    • 5th Mar 18, 1:34 PM
    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
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


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    • LilElvis
    • By LilElvis 5th Mar 18, 1:35 PM
    • 3,550 Posts
    • 9,762 Thanks
    LilElvis
    • #6
    • 5th Mar 18, 1:35 PM
    • #6
    • 5th Mar 18, 1:35 PM
    Ask your payroll department. No-one here knows your tax code, YTD earnings, any other deductions etc.
    • Comms69
    • By Comms69 5th Mar 18, 1:37 PM
    • 2,970 Posts
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    Comms69
    • #7
    • 5th Mar 18, 1:37 PM
    • #7
    • 5th Mar 18, 1:37 PM
    ......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!
    Originally posted by Zola.
    Only if you earned more than 11,000 in that tax year prior to taking SMP.
    • Zola.
    • By Zola. 5th Mar 18, 2:01 PM
    • 1,222 Posts
    • 482 Thanks
    Zola.
    • #8
    • 5th Mar 18, 2:01 PM
    • #8
    • 5th Mar 18, 2:01 PM
    Only if you earned more than 11,000 in that tax year prior to taking SMP.
    Originally posted by Comms69
    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
    • By Comms69 5th Mar 18, 2:03 PM
    • 2,970 Posts
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    Comms69
    • #9
    • 5th Mar 18, 2:03 PM
    • #9
    • 5th Mar 18, 2:03 PM
    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?
    Originally posted by Zola.
    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.
    • By Zola. 5th Mar 18, 2:41 PM
    • 1,222 Posts
    • 482 Thanks
    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
    • By Comms69 5th Mar 18, 2:45 PM
    • 2,970 Posts
    • 2,938 Thanks
    Comms69
    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.
    Originally posted by Zola.
    ah I see, is she entitled to the commission - it's usually somewhat discretionary.


    I mean for contract renewals during SMP
    • Zola.
    • By Zola. 5th Mar 18, 2:57 PM
    • 1,222 Posts
    • 482 Thanks
    Zola.
    Hopefully she will know that answer very soon, its a bit of a grey area. I would like to think she would, but no question the business will try to look after themselves first.
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