Tax and NI on maternity pay 🤔

I’ve been trying to figure this out too! I think this is a good ball-park calculator https://www.moneysavingexpert.com/tax-calculator/

From what I remember from when I was on maternity leave with my daughter, tax and NI isn't taken as the maternity pay is too low 🤔 I'm not sure if that's changed so I could be wrong but that's how I remember it x

https://www.gov.uk/maternity-pay-leave/pay#:~:text=SMP%20is%20paid%20in%20the,Shared%20Parental%20Pay%20(ShPP). Yep apparently both a deducted (same with pension) the link above also has a maternity pay calculator but I’ve also used https://maternity.money which is good although I don’t believe it has the updated 2024 SMP rate but still good to get a rough idea

Thanks everyone! I’ll check those links out and see if I can get myself any less confused 😂 x

If your paid monthly your allowed to earn £1041 before you pay any tax/NI (this is after pension contributions) If your only getting SMP/MA you wouldn’t be earning enough to be pay. You then also have approx £300 a month where you may have paid tax previously in the year and may get a rebate. Its all really dependent how much you earn tbh and if your getting occupational pay. So for example if your earn £2000 a month gross and pay 10% pension, you then have £1800 a month that they use to calculate. They then take £1041 away as your tax free allowance (if you have a basic tax code) meaning you pay 20% tax on £759 meaning you pay £151.80 tax. The threshold is same for NI but you pay 12% meaning £91.08 paid NI- total deductions £242.88 Your take home would be £1557.12 as long as you didn’t have any other deductions etc. Hope that makes sense. X

I honestly think it’s shambolic that we gotta pay NI and tax on mat pay