Mat Pay

[MrsRV]

starting mat leave on 1st May & have been on to HMRC to work out what my SMP will be (the employers bit) but this is then subject to tax & nat ins?? so beginning of tax year is April, surely I won't start being taxed until my cumulative earnings reach my personal allowance (normal rate)... so tax & nat ins won't be paid out of my mat pay but will be taken later in the year? if & when I reach personal allowance? help!!!! I'm trying to budget & be organised but working out my monthly pay is not proving to be easy!!!

Both SMP and MA are taxable benefits. The benefits that you earn will count towards your total yearly personal allowance. Thats how it works with other benefits like JSA for example.i worked in benefits for some time, but never dealt with SMP/MA personally. Hope this helps :-)

You've given me something to think about now, as I was planning on taking two weeks of leave from 31st of March and the start mat leave. I'm taking the whole year so it might be easier just to start with mat leave on the 1st of April... (I know it probably won't make a difference but I have a hard enough time getting it all sorted out in my head)

Ooh, interesting point! I'll add that to the list of stuff I need to ask the accountant when I see her! Thanks for starting the thread.

Good point but can't believe we will get taxed on already paltry MP...how mean ! Nothing else for it..DP is going to gave to start selling his body!

Your PA is spread pro rata over the year - it's not used up in the first few months.

EmpireBiscuit So if I'm on 90% for the first 6 weeks and then for 12 weeks on half-pay + SMP and just SMP for the rest of the paid mat leave - I know tax is just paid on what I earn over my personal allowance but, as you say, spread over the whole year. Will I have to do a tax return for that year or will they automatically pay back the tax I overpaid?

That's where my brain always fails to work, and as the daughter of two accountants, too! The shame of it.

I think I've read somewhere that you can ask your employer for childcare vouchers whilst receiving SMP, and because SMP is fairly low they have to pay the £200-odd vouchers on top of the SMP you receive. Probably worth looking into that too.

Any tax rebates will be calculated through your payroll.

Thank you!

Nae boder luv.