Pensions and tax during maternity leave

[Jellybabie3]

I'm trying to budget for mat leavr and am confused about tax on SMP - how do i calculate what i will actually get? And do i pay my normal pension contribution (% of income on SMP) up until the point i go onto no pay??

How much SMP with you receive a week? & will you have any other sources of income?

you only pay tax on income over the threshold - if SMP only you will be under. Pension is up to you. I took a break as only had a short mat leave and the contributions would have been negligable

Ok thanks smp only will be after 14 weeks full pay from employer. Smp only will be for 25 weeks

Do you contribute via salary sacrifice or the net pay method?

Net pay

Your contributions will be based on your maternity income. Your employers contributions will be based on your pre-maternity earnings.

If your SMP is less than £221 a week then it won't be taxed, anything above that will be 20%

You need to take into account your full annual salary for the tax year not just the amount of maternity pay. So it will depend on what point during the tax year you take leave and how much you have earned before then. It's taxed the same as any other income.

Ok. I will be going in September. So complicated!

What mimi said. So if you've already earned over the threshold by the time you go on leave in September then yes you will still pay tax on smp. And I imagine you will be over if you're also getting 14 weeks full pay first.

Unless you overpaid tax on the basis that your earnings would stay the same but they go down to smp levels of course.