Better off on MA than SMP?

[nomoreheels]

I've just been researching Maternity Allowance vs Statutory Maternity Pay, and was a bit shocked to see that SMP is taxed while MA is not - even though (as far as I can tell) they are virtually the same amount apart from the first six weeks of 90% of your wages for SMP.

Am I missing something here?

I would expect and understand it if any wages your employer pays above and beyond SMP would be taxed (e.g. mine offers 40 percent plus SMP for the remainder of the first six months)

But if you work somewhere that only offers SMP at the standard rate, then you could be worse off than someone who is receiving MA during that same time period.

Just strikes me as a bit odd...

My friend mentioned getting some sort of tax rebate later in the year due to your overall earnings going down though, which I guess would help.

Anyhow, this is all still very new to me so please feel free to correct me!

??? bumping as I have no idea, but no it doesnt seem fair does it!

I have this problem, I am on smp and get nothing else and yet I would be financially far better off on MA and I promise you I am not a high earner as am well under £10,000 however I get taxed because I opt for health insurance for my family which was and is a huge perk except that our excess per person is £200 .

And am not sure about the tax rebate as I didn't get one last time I was on ml! (post tax I get £80 p/w which I believe is £5 less than ma - I suppose at least i get something!)