Maternity pay & tax

[ttcnewbie123]

Hi ladies,

Wonder if anyone can help with this!

I was wondering how much tax, if any I will pay on my maternity pay.

My tax code is 747 which if Im correct means I can earn 7470 without paying tax - however as I'll be earning normal wages from the start of this tax year, April until mid November when I go on to maternity pay I would have already earnt just over double this. So what happens from mid November onwards - do they just calculate tax based on what you earned that week? Basically I'm worried most of my £128 a week SMP will swallowed up in tax but surely that cant be the case regardless of how much you were earning before?

 

[Gilly74]

Tax is taken as a % of your pay. Therefore as your earnings decrease, your tax will decrease. If you have paid too much tax, you may find that you actually get more money and tax back..sorry can't be more precise but not a tax expert!

 

[2RockinBoys]

Im not entierly sure as with my first son i wasn't employed but entitled to SMP (very long story) but i dont think it was taxed. It was £123 something pence per week but paid every 2weeks (as i wasn't employed). Sorry i can't be of anymore help

 

[ttcnewbie123]

No worries ladies, thanks!x

 

[hulahoop09]

I am on the same tax code and up to when I started maternity I had earnt approx £6754. As far as I am aware they spread your tax free allowance over the 12 months and so as someone said as your pay decreases what you pay in tax will. I have budgeted that I will get approx £530 maternity pay after tax & NI. This is because SMP is based on weekly and some months have more weeks/days than others so I understand it that pay will vary.

xx