SMP tax help

[Karabi]

Hi everyone, I was just wondering if somebody could help me calculate roughly how much SMP I'll get? I have no idea how the tax and NI works but I do know it depends on how much I've been paid and taxed in the current tax year.

I'm due Nov 19th and my paydays are 24th each month. I get a salary of £20200 a year. Our tax year starts in April. I believe my tax code is 1100L (or similar). Does that mean I carry on paying the 20% tax and 10% NI as per the norm or will I get a tax refund each moth because I've paid the tax for a 20k salary but my income will drop dramatically after 7 months into the tax year (thus changing my tax code)?

I'm so confused so any help would be really appreciated!

[Sanch1]

It's so hard to know. You'll probably carry on paying as you are now, then if necessary you'll get a rebate in your pay or by cheque around march/april time. This is what happened with me.

[Karabi]

Thanks for the reply Sanch, if I get taxed and NI deducted at the normal rate then I'll be getting less that £400 a month in SMP :( Until the new tax year in April of course.

[DoubleCarrick]

I'm not sure about SMP but I know that maternity allowance isn't tax deductible - so I don't think you'd have to pay tax

[FuzzyOwl]

I had to pay tax etc at my usual rate on my SMP last year and then received a rebate afterwards.

[AveEldon]

www.gov.uk/pay-leave-for-parents

[emsyj]

SMP is taxable. Maternity Allowance isn't. I would think you could use Salary Calculator online to work it out?

[ForTheLoveOfSocks]

SMP is treated exactly the same as your normal pay, so it will depend on your exact earnings from April until you go onto SMP.

Your tax code should not change because your pay decreases.

What will happen is the first month your income drops, you will probably pay no tax and have a small rebate too.

Depending on how your Payroll Dept does things, some months you'll get around 518 gross and some 620. I do it monthly on my payrolls, but some choose to pay four weeks one month and five weeks the next.

If you remain on a code of 1100L, you shouldn't pay much tax, but like I said earlier, your circumstances are unique to you because of how much pay you receive between April and being paid SMP