finances on maternity leave

[gerb]

hi a quick question, i have a well paid job and am in the 40% tax bracket, unfortunately i have smp only and things will be very tough wen im off (understatement)- ideally i want to be off as long as possible but depending on how money goes it could only be the 6weeks at 90%...

anyway because the tax year starts in april and im 'hoping' to work until 39weeks (yes i know)... which will be end of october so 7months with paying the 40% tax, if i was then to be off say until april after december i will be on £400 and what ever it is a month- am i likely to get a rebate??

just wondered obviously every little helps!!

also do u get child allowance wen ur on maternity leave

thanks girls xx

 

[LisaJ1986]

I'm in a not-so-well paid job. I worked til 2 weeks to the day before my due date. I've had my 90% and now on the SMP! With a high mortgage it's no good for me!
I'd like to know the answer to this question as i'm struggling like mad at the mo! To the point where i own £5 to my name til payday next week!!!
I rang tax credits and i was entitled to more than i thought. Before they send out the application they take all the details and work out your estimate. Turns out i was entitled to working tax and child tax.
You get you child benefit as standard.
Worth ringing them as they are brilliant and tell you all you need to know. And answer any other questions you may have.

 

[1sttimemum]

you get child benefit when your baby is born!!


not sure about having a rebate on tax you'd have to check either now or nearer the time.

you might be entitled to child tax credit also depending on your joint income, check with tax credits.

xx

 

[kalia]

You only pay tax on your actual earnings, so at the end of the tax year you would apply for a tax rebate. I don't know if you could get a rebate before then. When you get your P60 (or is it 45? I get them mixed up) it would detail your income, including SMP, and how much tax you have paid. Some employers might sort it out for you so it might be worth talking to payroll. I don't think you'd see the money before next summer but you'd definitely get any extra tax you pay back.

I'd recommend saving lots now so you still have a good amount of money when you're on maternity leave. I'm really glad I did that, I'd hate to have to worry about the money

to both of you

Edited to add: SMP is included as part of your earnings for tax

 

[badgergirl]

I'm in the same boat as you - entitled to the 6 weeks at 90% and then down to £117-ish a week. I second ringing child tax credits asap, I'm entitled to an extra £20 a week from them, plus child benefit. It doesn't get me out of the red, but it helps.

Someone's recently told me that I'll get taxed on the £400-ish too when I get that (at the end of this month). If that's true, I'm going to be a) disgusted and b) even more screwed.

 

[LisaJ1986]

I don't think you get taxed on SMP. I get the £112ish from work for 13 weeks, then the same again for 13 weeks after from the government. So i don't think you get taxed It'd be wrong if you did. I'll be checking my wage slips if i ever get any.

 

[1sttimemum]

if that £117 smp takes you over the tax threshold of 5435 then surley you would have to pay tax on it?

im thinking i will have to pay tax then if i dont its a bonus.

 

[Mummy-D]

Hi everyone
Does anyone know how smp works if you only work part time? I work 4 days a week doing approx 20-22 hrs a week? after the 6wks at 90% what will i get after that?

 

[1sttimemum]

i think £117.25 - its statutory

 

[LisaJ1986]

I'm only getting £112.17 from work. And i was a full-timer. I'm gonna have to double check what the hell is going on!

 

[1sttimemum]

I'm only getting £112.17 from work. And i was a full-timer. I'm gonna have to double check what the hell is going on!

Why?

Its STATUTORY pay ie everyone gets thesame

 

[LisaJ1986]

I think my work has got it mixed up. She wrote it all down for me. I'm gonna query it now.

 

[1sttimemum]

hopefuly you'll be entitled to more then.

 

[NickyB]

Isn't stat' MP £117 per week, or 90% of your weekly wage, whatever is less?

I hate this, it makes me so mad how much tax I've paid per month since leaving Uni and I don't get to see enough of it now I need it to pay for very much at all. Ah well, not much I can do.

 

[1sttimemum]

How much will I get?
SMP is paid for:

First 6 weeks 90% of your average weekly earnings with no upper limit
Remaining 33 weeks Standard rate or a rate equal to 90% of your average weekly earnings. You will get whichever rate is lower.

The standard rate from 6 April 2008 is £117.18 per week.


This is what was on the DWP website.

 

[Babylicious]

SMP has just gone up to £117 a week I think. You wouldn't pay tax on it either. Plus you could always claim tax credits whilst you are off?

 

[1sttimemum]

Do you defo not pay tax on smp?? Can someone vouch for that

 

[Tadpole]

I'm afraid you pay tax & national insurance on SMP

from here...

http://www.dwp.gov.uk/lifeevent/benefit ... ty_pay.asp

SMP is earnings and your employer will deduct tax and National Insurance.

 

[1sttimemum]

Thanks for that, As i thought, Im no worse off tho as i was expecting to pay tax and NI.

 

[sparky]

we're taking a break from the mortgage for 6 months, which will help enormously, have you tried contacting your mortgage co?