how much is maternity allowance?

Discussion in 'Ask a Mum!' started by Keely, May 27, 2006.

  1. Keely

    Keely Well-Known Member

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    Hi

    Not sure if this is the right place to post this but......

    after 6 weeks i know your wages go from 90% to £100... but is this £100 taxed??

    Will i be getting £100 or less?

    Thanks

    Keely xxxx
     
  2. michelle82

    michelle82 Well-Known Member

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    hi hun i have just started getting smp its just over 100 quid a week and you dont pay tax or national insurance on it
     
  3. Urchin

    Urchin Well-Known Member

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    Hiya yeah I get £106 quid a week (well I did it's run out now) :?

    Also, just so you know, you take this off any Tax Credits claim you have. I have recently renewed, and you have to take £2,600 off your annual earnings straight away. I was chuffed!
     
  4. Keely

    Keely Well-Known Member

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    thanks girls.

    I was thinking of going to the job centre to ask about my tax credits when i start my maternity allowance.... OH is self employment on CIS so i dont know if this effects it?? xxxx
     
  5. Urchin

    Urchin Well-Known Member

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    Oh hold on sorry I got confused for a minute, I get statutory maternity pay, not maternity allowance.

    Some other mums get the allowance though, I'll see if I can find any more info.

    Yes, you do have to tell the Tax Credits people what your OH earns too.
     
  6. katastrophic

    katastrophic Well-Known Member

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    Keely,

    You only need to claim Maternity allowance if you are either out of work or have not worked for your employer for more than "25 weeks before the 15th week that the baby is due".

    Maternity allowance is paid by the job centre and is £108.85 p.w. ( you must have worked more than 26 weeks out of 66 with average weekly earnings of £30.00 or more if your average weekly earning is less than £108.85 then you are only entitled to 90% of average weekly earning ) no NI or tax to be paid as you are considered "unemployed" but it is counted as income against benefit claims though not against tax credits. If you haven't fulfilled the criteria you can still make an appeal.

    If you have been in work for longer than "25 weeks before the 15th week that the baby is due" continuously, it will be SMP paid by your employer (you must earn above the LEL (lower earnings limit of £84 p.w. which means that you have made NI contributions - otherwise claim maternity allowance). Many employers have their own policies but by law they have to offer their staff at least 6 weeks at 90% of salary (no upper earnings limit) and then 20 weeks at £108.85 or 90% of average weekly salary if less than £108.85. You will pay tax and NI same as you do with normal wages I'm afraid but the £108.85 is net of tax, this is your take home figure.

    I have worked in payroll and it took me ages to get my head around this, I hope I have got it all right and that it makes some sense!

    Kat x
     
  7. Urchin

    Urchin Well-Known Member

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    Thanks for that kat, it's quite complicated isn't it? :)
     
  8. Keely

    Keely Well-Known Member

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    thanks very much kat thats great.

    I knew it was around £100 but had a horrible feeling it was before tax and i would be getting a lot less.

    thats a great help

    xxxxxxxx
     

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