Tax and NI on mat pay.

[Mrs_Random]

Hi,

Today was my first wage where I only got SMP.

My wage slip came in the post this morning and I haven't paid any tax or NI on my SMP.

Is this correct? I was under the impression I would pat tax and NI as normal as it is classed as a normal wage.

I am worried I am going to get stung at the end of the tax year now.

 

[hellypops]

I'm not 100% sure but I don't think you are taxed on smp or if you are its only a few pounds.My friends on mat leave at the moment so i'll try to find out off her.x.

 

[hellypops]

Yeah she said it is right,you only get taxed and Ni on first 6 weeks when you get 90% pay then smp is tax free.x.

 

[MrsRH]

Yeah she said it is right,you only get taxed and Ni on first 6 weeks when you get 90% pay then smp is tax free.x.

smp is not tax or NI free, MA is.
Is SMP subject to tax and NICs (National Insurance contributions)?

Yes. SMP is regarded as earnings for PAYE (Pay As You Earn) and NICs. But it may be that the earnings will not be high enough to attract payment of NICs and may also produce a tax rebate.


it is not much though due to the low amount of 'income'

to the OP; speak to your HR or payroll as if you are not taxed or having NI deductions it will come off in a big chunk at some point!

x

 

[sugar_puff]

I haven't been paying tax or NI on my smp (actually had a tax rebate of £12 a month for last 3 months!)

I think its because until mid July i was taxed based on annual earnings of £18000 but since going onto smp i'm only going to earn about £10000 this year so total tax and NI for year would be a lot lower and i've obviously paid too much already... When they work out your tax they look at how much you earn that month, they then assume that you will earn the same amount every month until the end of the financial year to predict your end of year earnings to then calculate this months deductions

Not sure if that makes any sense to anyone outside of my head but what i think i'm trying to say is that it sounds about right that your tax and NI would go right down.

Hope that helps!

 

[ronnie1234]

I'm getting an extra £3.73 each week income tax, so I must've paid too much tax earlier in the year

 

[hellypops]

Yeah she said it is right,you only get taxed and Ni on first 6 weeks when you get 90% pay then smp is tax free.x.

smp is not tax or NI free, MA is.
Is SMP subject to tax and NICs (National Insurance contributions)?

Yes. SMP is regarded as earnings for PAYE (Pay As You Earn) and NICs. But it may be that the earnings will not be high enough to attract payment of NICs and may also produce a tax rebate.


it is not much though due to the low amount of 'income'

to the OP; speak to your HR or payroll as if you are not taxed or having NI deductions it will come off in a big chunk at some point!

x

I thought it sounded to good to be true