Stat Mat Pay HELP

[TripleESept24]

Hi all, I'm starting to get nervous about stat mat pay and have some questions if anyone can help!!

This month I'll be on my "90% of salary" so I'm not too worried. October will be half and half as 2 weeks will be the 90% still, and 2 weeks will be £184.05. Then going forward from Nov will just be the £184.05 until I go back.

My queries are, does the £184.05 get taxed, National Insurance and Pension taken out?? I'm actually worried as to what I will even end up with for those months!?!? What did people on just stat mat pay and child benefit have per month? Thanks

Hey! I’m on maternity leave next year and had the same questions so I asked a friend who confirmed her SMP did get taxed, but no NI and i’m not sure about her pension as I didn’t ask, but I believe pension continues to be taken.

I’ve chosen to stop any further payments into my workplace pension until after maternity leave, so that I can save as much as possible.

I plan on applying for UC to help top up my pay, have you tried to see what you’re entitled to?

SMP is subject to both tax and NI x

And yes pension contributions continue unless you stop them x

I've actually just emailed my work asking if pension deductions can be stopped just for the period I'm off. I'm concerned that I'm literally going to be getting like £500/600 a month and I don't think I'm gonna be able to deal with that 😭🥺

I will try entitled to calculator.

So on £184.05 weekly, what would we get taxed and NI'd ? Anyone give an idea of what you actually get take home a month?

No you would not pay any tax or NI

But you still get your tax free personal allowance, which is over £12k. So actually if your only income is SMP I don’t think you will pay any tax or NI those months. If you were earning enough to pay tax pre maternity leave you may find you get some of this back, as it will have been taxed assuming you earn the same each month so when your earnings drop, you’ve overpaid.

I don’t think I’ve explained that very clearly. I had only SMP this month and didn’t pay any tax or NI.

That's not what others are saying?? 😭 I just really want to know what I'm actually going to be "taking home" as of Oct going forward and feel like I won't know until I get it into my bank

For NI you're allowed to earn £1048 per month before deductions. Tax will depend on your tax code, if you're on 1257L it will be the same. SMP is paid in full weeks so if your last day was a Friday your maternity week runs from Sat to Friday, count the number of Fridays in the month to see how many weeks SMP you'll get.

Previous posters aren't quite right. SMP is subject to tax and NI but if it's your only monthly income then you don't actually reach the threshold to pay anything, due to your tax free allowance. Same with your pension - I checked with my HR and that's what they said!

Yes are liable to pay tax and NIC on SMP as it is classed as earnings, but whether you actually do or not depends if it is over the thresholds.

NIC - you can earn £242 per week without paying any NIC

Tax - if you have already exceeded your personal allowance of £12570 for the year then you will pay tax, if you haven't then you won't if it is under the monthly allowance

You can also check with HR on your pension contributions/benefits. Some employers maintain the same level of contributions throughout despite just being on stat mat pay.

@skyeisthelimit I will definitely have passed the £12,570 threshold.......

At present I have just asked our accounts lady who does payroll what she thinks and if I can halt my pension contributions until I go back

OP, some employers automatically stop your pension contributions (mine does). Did your work place not send you a letter confirming and outlining your Mat pay before you went off??

No! It's a very small company not a large company! They haven't had anyone go off on maternity for 10 years..... We just went through the staff handbook together. Not gonna lie and say it doesn't fill me with much confidence! Nothing about pension contributions in the handbook

The £12,500 personal allowance is divided by 12 and applied monthly.

If your only income is SMP then your monthly earnings will be below the threshold when you pay NI. However, SMP is higher than the lower earnings limit so you get the benefits as if you had paid NI. This is important for pension and benefits.

WRT tax, again if SMP is your only income, you will be subject to tax but the monthly tax free limit of £1041 should be higher. Not only will you not pay tax, via PAYE you should get a tax rebate as technically you have over paid tax for the year to date.

WRT your pension, from memory you will still pay pension contributions at the same % not £ so far less. Importantly your employer will still pay their pension contributions too, so it’s worth continuing.

I'm currently on SMP and the amount that went into my bank this month was £754.86. I hope that helps 😊