Hi all, hope this is the right section for this question!
Just wondering if those of you currently receiving statutory maternity pay could enlighten me as to how much you actually take home each month after tax etc? I'm just trying to get an idea of how much of my earnings I'll need to make up with savings in a few months' time, and how much time I'll therefore be able to take off...
So this is JUST the statutory pay that you get after any other schemes have ended (the £139.58 per week).
If you're on a cumulative tax code and start SMP partway through the year then the amount of tax deducted on the SMP will be adjusted.
Each month we take the earnings to date, subtract freepay and calculate tax on what's left. Freepay is the proportion of your tax code for each month so 10600/12 = 883.33
Tax cumulative calculations are done on a year to date basis. So each month the tax is calculated on your earnings so far then what you've already paid is taken off to leave that months tax figure.
Example if you earn 24k a year and start SMP in October, you've paid tax each month on 2k a month, assume £400 a month tax. So by the end of September you've paid tax on 12k, let's say the tax is £2400. When you're paid in October, the YTD earnings might only be 12,500 with the SMP so the tax on that is probably 2000, so you'd get 400 back.
I haven't used exact calculation figures but there is no hard and fast rule. You won't get the tax back every month, and it won't be the same amount. Your payroll dept might be able to help you, but IME lots of them can't do manual tax calcs
Expect to get the SMP amount and any extra is a bonus