Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

How much do you actually take home on maternity pay?

10 replies

Al991 · 14/08/2023 09:47

I am just trying to work out how much I’ll actually get on SMP.

I have gone over tax threshold this year so I will pay tax and NI on basically all my mat leave payments.

I am on basic tax rate so 25% then assume it’ll be 12% NI as well.

So does that mean it’s £172.48 minus these percentages, so actually only 63% of that which is £108? Is that how it actually works.

Not sure why this isn’t Googleable.

OP posts:
OnTheRunWithMannyMontana · 14/08/2023 09:51

It's only early in the tax year really so even though you are over the threshold you still have your tax free allowance every month which should be higher than your SMP.

You can use the HMRC calculator to help get a more exact figure for your take home pay.

payecalculator.hmrc.gov.uk/PAYE0.aspx

Original poster
Al991 · 14/08/2023 11:13

OnTheRunWithMannyMontana · 14/08/2023 09:51

It's only early in the tax year really so even though you are over the threshold you still have your tax free allowance every month which should be higher than your SMP.

You can use the HMRC calculator to help get a more exact figure for your take home pay.

payecalculator.hmrc.gov.uk/PAYE0.aspx

Thanks for replying! By the time I get to SMP I will have gone over my £12250 allowance so doesn’t that mean I just pay tax on everything including SMP?

OP posts:
CatsOnTheChair · 14/08/2023 11:34

But tax is calculated assuming you are going to earn the same every month.
So, the first thousand (and a bit) you earn each month is tax free, then they start deducting tax on earnings above that.
If your maternity is then under 1000 each month, you won't pay any tax - and may even get a tax rebate towards the end of the year.

Original poster
Al991 · 14/08/2023 11:59

CatsOnTheChair · 14/08/2023 11:34

But tax is calculated assuming you are going to earn the same every month.
So, the first thousand (and a bit) you earn each month is tax free, then they start deducting tax on earnings above that.
If your maternity is then under 1000 each month, you won't pay any tax - and may even get a tax rebate towards the end of the year.

Oh yes you’re right. Didn’t even occur to me I’ve been paying tax on assumed earnings and actually will be earning much less than salary this year, so you are right I am unlikely to pay tax on the SMP. Hope this is the case!

OP posts:
OnTheRunWithMannyMontana · 15/08/2023 07:57

Yep even though you have warned £12k so far you have only received 5 months worth of tax free allowance (if on standard tax code then that's only 1047 per month. So each month you will get another 1047 of tax free allowance and as your SMP is below this you shouldn't pay any tax.

The threshold for NI is the same amount so you shouldn't pay that either.

The only exception will be during the first 6 weeks when you will get SMP at 90% of your average earnings so maybe higher than the threshold.

tempgernard · 20/08/2023 02:21

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

Original poster
Al991 · 20/08/2023 07:15

This reply has been deleted

This has been deleted by MNHQ for breaking our Talk Guidelines.

This seems like a good idea! I’ll give it a go.

OP posts:
Unexpectedlysinglemum · 20/08/2023 09:02

I get £745 stat maternity and I'm usually a higher rate tax payer so I get all of it

Rainbowflower2024 · 12/04/2025 23:48

@Al991 hello! I know this is a very old post but did you end up getting taxed on your smp?

New posts on this thread. Refresh page
Swipe left for the next trending thread