Is SMP taxable?

[missnatalie]

A friend of mine has told me that when i go ont SMP i will still have to pay my tax and NI contributions. Is this true?

as far as i know, yes, but because it is quite a low amount the tax and ni will be too. i am expecting to pay it on mine.

Damn!! This bloody country takes me for every spare penny ive got. I do hope that its not too much.

Thanks EllieKthePA

once you're on the basic amount i don't think you'll get taxed at all, i won't be cos £112 a week isn't enough to get taxed on, but mine does start a week into the new tax year so my predicted earnings for the year will be really low!

It is taxable, but what you might find is that you actually end up with tax refunds, because you are taxed on each pay period as if you were going to earn that all year.

I recently dropped from 30 hours to 5 hours per week, and for the last few months I have received tax refunds because my wages have dropped, so my overall yearly paid amount will be less.

Your allowances for tax are pro-rata.