Statutory maternity panic
Hi all - are there any HR specialists on here? 😊
With stat mat being £172.48 per week. How is tax & NI calculated? Is it 20% off this amount? Does it take into account yearly tax free amount?
Thank you
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Not taxed hon x
@Charlotte what’s the criteria that will affect this? Thanks
It is taxed. Unless you haven't earned above the tax free allowance this financial year x
Your income for the tax year is taxed exactly the same as always, so you can earn £12,570 tax free before then paying 20% tax on any earnings over this. So for most people on statutory maternity pay this will mean they pay no tax as they won’t earn over the threshold. However everyone’s circumstances are different, if you are a big earner for some of the tax year when not on SMP then maybe you will earn over.
Yes, it’s taxed as any other income is.. also pension deductions if you are in a scheme.
@Charlotte thank you so much
Thanks all for your help
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Hi hun not hr myself but a store manager that's had employees on stat maternity, its under the taxable income bracket so you will not pay any tax! I've been getting a small refund each payday of tax I've paid this year x