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Pregnancy

Talk about every stage of pregnancy, from early symptoms to preparing for birth.

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Original poster

statutary maternity pay is taxed?

16 replies

Rootatoot · 25/06/2011 11:01

Just got my first bit of maternity pay along with my last bit of salary. I had no idea that I'd be taxed on my maternity pay. That's really rubbish isn't it?! I'm self-employed as well as working part time but I won't be working again until at least next Feb, in which case I'm not expecting that I'll even earn my personal allowance during the next tax year. How pants I'll have to wait until next year to get the money back again - we need it now!

Sorry, just wanted a quick moan!

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Newmummytobe79 · 25/06/2011 11:05

It is rubbish! Is it a standard amount of tax for everyone? If so ... would you mind sharing how much they take off you? If it's on an individual basis totally understand if you want to keep if to yourself!

Original poster

Rootatoot · 25/06/2011 11:20

Well as it's a mixed pay slip for this first one then hard to tell exactly how much they've taken off the SMP part, but it's definately the whole amount that was taxed. So total amount was £570 and took off £114. SMP part of earnings was £258.

OP posts:

trixymalixy · 25/06/2011 11:22

Yes it is taxed, but you may be able to claim it back depending on what other income you have had during the tax year.

Original poster

Rootatoot · 25/06/2011 11:26

Yeah I think I'll be able to claim it back thanks, trixy, only it'll be another year before I can, and it is the next few months that I need it. Just a rubbish system really. They give you money, then take some away and then you ask to get it back again! I just didn't realise they taxed smp at all.

OP posts:

trixymalixy · 25/06/2011 11:27

It is a bit rubbish as it's when you are on mat leave you need the money, not when you're back at work!!

YaMaYaMa · 25/06/2011 11:30

I haven't paid any tax on my smp for the last few months, vaguely worried now!

trixymalixy · 25/06/2011 11:34

It depends on when you went on mat leave. If you are paid PAYE and your first payslip of the tax year is just mat pay then you won't pay tax on it.

Original poster

Rootatoot · 25/06/2011 11:43

I think unfortunately it's because my PAYE work is classed as my 'second' job and is just a Basic Rate code, thinking about it. So my personal allowance is set against my self-employed income but I'm not expecting to earn anything on freelance basis this tax year (till next April). Wonder if it's worth ringing tax office? Although last time I had to, cost me £6 in phone calls. Can't win!

OP posts:

nannyl · 25/06/2011 14:45

i hope mine isnt

i havent (and wont) earn a penny this tax year.

Jill72 · 25/06/2011 14:49

Confused = smp is £128 per week?? do you get tax taken off this???

trixymalixy · 25/06/2011 14:55

If you earn anything including SMP above the tax free limits then it will be taxed. If SMP is your only income in the tax year then your income will be below the tax paying threshold and won't be taxed.

Fluter · 25/06/2011 16:22

I'd ring HMRC. I have two jobs and they split my allowance between them based on how much I think each one gives me. They may be able to do this for you. I also noticed (I actually run my own PAYE for one job) that it adjusts tax throughout the year if there's a change in code. Worth a try?

prolificwillybreeder · 25/06/2011 16:24

Google this website so you get a local rate number to call them: saynoto0870. I feel obligued to tell everyone this as I can't believe the price of premium rate calls!

Original poster

Rootatoot · 25/06/2011 17:04

Fluter thanks for the suggestion. Yes, think that might be worth a go. Didn't know they could split it. I don't expect I'll earn anything much from self-employment this tax year so perhaps they can swap it for this year.

Thanks prolificwillybreeder i'd forgotton about that site. I hadn't realised how expensive even the 'local' 0845 calls are during the daytime.

OP posts:

Pudding2be · 25/06/2011 17:44

Hello ladies

Because your SMP is on your second employment, anything you are paid through it is going to be taxed, and I doubt you can claim it back. However did you know if you have two jobs and earn enough in both you can claim SMP on both? In your case OP you maybe able to claim Maternity Allowance through your self employment, which if paid through your normal tax allowances you might not pay tax on. I would go on to the DWP website, as you can backdated claims upto 3 months.

For everyone else I wouldn't worry too much about paying tax on your SMP. If you are paid through PAYE and your tax code is correct you shouldn't pay much/if any. The earnings threshold per month if your on 747L is £622.92. If you've earned less than that the difference is carried over until the next month.

HTH

babyonbord · 25/06/2011 18:50

It depends on your earnings over the year for the first six weeks you'll probably get taxed as its 90 per cent of your wage after that you shouldn't do

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