Tax, NI, Pension, Student Loan Deductions During Maternity Leave

Discussion in 'Home Life & Finances' started by NATALIE81, Apr 16, 2010.

  1. NATALIE81

    NATALIE81 Active Member

    Jan 17, 2010
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    Hi All,

    I'm trying to work out a budget for my maternity leave and work out how long I can realistically afford to take off. In my works maternity policy it says:

    Week 0-6 - Full Normal Pay inclusive of SMP
    Week 7-26 - Half of normal pay plus SMP
    Week 27-39 - Standard SMP
    Week 40 - 52 - No Pay

    What I was wondering is, will I always have to pay the usual amount of tax, national insurance, student loan and pensions that I normally pay for my salary even though I will technically be on a lower pay band, especially after the 26 weeks when I will be on the standard rate of SMP which I think is now £124.11 a week.

    How would I go about finding out what amount of tax etc I should pay? I have asked my HR department and they said they cannot tell me until I have filled in my form stating how long leave I want to take before any illustration can be given, which I think is a bit out of order really as how are you meant to know if you can afford to take the 13 weeks paid at SMP if you don't know exactly what you will be getting after all your deductions etc.

    Anyhoo any help or guidance is much appreciated.


  2. kiki

    kiki Well-Known Member

    Apr 18, 2006
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    Hi, not really sure how it works but for my maternity leave the tax and NI was proportional to the amount I was paid (so when I was on 50% salary I only paid 50% of my normall tax and NI). And for the last 3 months that I haven't had any salary I also haven't paid any tax or NI. Hopefully someone else can help you more!
  3. AugustMum

    AugustMum Well-Known Member

    Dec 18, 2009
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    Im by no means an expert and Im just guessing really...but in regards to the student loan repayments, if what your earning during maternity leave is less than the £15000 then it shouldn't be taken out...or at least thats what I would imagine. But Im not sure what happens with paying tax or NI.

    Could be worth going to the job center with your details or to citizens advice...they might be able to let you know before hand :) x

    Hope you work it all out soon.
  4. Zazu

    Zazu Well-Known Member

    Jan 9, 2010
    Likes Received:
    I imagine the amount you pay, will be based on the amount you are earning at the time, for tax it is a % on whatever you earn above the tax free threshold, and i think NI is similar. Pension will depend on your employer, but i have been told i will continue to pay at my normal %. no idea about student loans. To be prudent, i would work out what % of your gross wage you are taking home now and base it on that.

    I dont think you have to tell your work how long you want off. According to the government website, your work should assume you are taking the full 52 weeks you are entitled to, and you notify them in writing when you want to go back, giving at least 8 weeks notice, see link below. My work have just written to me and the letter says pretty much the same thing.

    Hope you work everything out xxx

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