Do you pay tax on SMP?

daisyfflur · Nov 9th, 2009, 09:50 AM

So found this calculator that works out my monthly SMP but do you pay tax on the earnings (or is it not considered earnings?) that you get from your employer or is that money all mine to spend?

I mean save?

I hate tax related questions.

Thanks.

Helabela · Nov 9th, 2009, 09:52 AM

yes you do have to pay tax, sucks doesnt it!

daisyfflur · Nov 9th, 2009, 10:02 AM

So what I'm confused about is how much. So SMP is first 6 weeks at 90% of your wages and then the £123 a week.

I'm on 40% tax so I'm assuming they will tax my first 6 weeks as normal but then they surely couldn't take that off my £123 a week because they would leave me practically living on thin air.

daisyfflur · Nov 9th, 2009, 10:09 AM

ok, so found this snippet

Deductions from SMP

SMP is treated as earnings, so your employer will make any deductions (such as income tax and NI contributions) that are due. Your employer can also make other deductions from your SMP, for example pension contributions or trade union subscriptions.

Dream.A.Dream · Nov 9th, 2009, 10:13 AM

It won't be 40% tax you pay on the £123 but it is taxable xx

JessiHD · Nov 9th, 2009, 10:16 AM

Personally I think it is totally unreasonable for us to be expected to pay tax on top! The SMP comes from the years of NI contributions we've made anyway, so we're getting taxed again!

karenal · Nov 9th, 2009, 10:17 AM

What they might do is tax you 40% but then you will get a rebate at the end of the tax year, depends how organised your company is, but I would check with your payrol department, Im sure they have done it all before.

My husband had the same question, if he gets his £123 SPM and gets taxed as normal, then he will end up with like £90 for the 2 weeks.

Im going to check all this with my HR department when I hand my MAT B1 in and sort out my maternity leave.

Helabela · Nov 9th, 2009, 10:20 AM

Quote:

Originally Posted by daisyfflur

So what I'm confused about is how much. So SMP is first 6 weeks at 90% of your wages and then the £123 a week.

I'm on 40% tax so I'm assuming they will tax my first 6 weeks as normal but then they surely couldn't take that off my £123 a week because they would leave me practically living on thin air.

Its the same as this for me.
yes you will be taxed as ususal for 1st 6weeks then theres not much they take off the 123 per week, think it should leave you with over £100 per week still.

daisyfflur · Nov 9th, 2009, 10:27 AM

Thats ok then. My OH has said as much. I consider myself to a fairly well educated person but DO NOT get tax at all, all I know is someone takes a pretty large chunk of my gross wages every month and I'd quite like to see some of it back. I'm never ill, I pay a lot of tax a year and they then want to quibble over £123 a week for a few months. Hardly seems a like fair trade if I'm honest.

Helabela · Nov 9th, 2009, 10:38 AM

no its not fair at all, very frustrating, i hate money! Im glad hubby has a well paid job otherwise i would be panicking. I have to cancel money going into my savings account and into the joint account for paying bills soon, poor hubbys got to pay it all!

Nov 9th, 2009, 09:50 AM	#1
daisyfflur Mum (Mom) Active BnB Member Join Date: Sep 2009 Location: Wiltshire Posts: 679	Do you pay tax on SMP? So found this calculator that works out my monthly SMP but do you pay tax on the earnings (or is it not considered earnings?) that you get from your employer or is that money all mine to spend? I mean save? I hate tax related questions. Thanks.

Status: Offline

Nov 9th, 2009, 09:52 AM	#2
Helabela Mum (Mom) Chat Happy BnB Member Join Date: Jul 2009 Location: Warwickshire Posts: 2,386	yes you do have to pay tax, sucks doesnt it!

Status: Offline

Nov 9th, 2009, 10:02 AM	#3
daisyfflur Mum (Mom) Active BnB Member Join Date: Sep 2009 Location: Wiltshire Posts: 679	So what I'm confused about is how much. So SMP is first 6 weeks at 90% of your wages and then the £123 a week. I'm on 40% tax so I'm assuming they will tax my first 6 weeks as normal but then they surely couldn't take that off my £123 a week because they would leave me practically living on thin air.

Status: Offline

Nov 9th, 2009, 10:09 AM	#4
daisyfflur Mum (Mom) Active BnB Member Join Date: Sep 2009 Location: Wiltshire Posts: 679	ok, so found this snippet Deductions from SMP SMP is treated as earnings, so your employer will make any deductions (such as income tax and NI contributions) that are due. Your employer can also make other deductions from your SMP, for example pension contributions or trade union subscriptions.

Status: Offline

Nov 9th, 2009, 10:13 AM	#5
Dream.A.Dream Waiting To Try (WTT) BnB Elite Join Date: Jun 2008 Location: England Posts: 18,943	It won't be 40% tax you pay on the £123 but it is taxable xx

Status: Offline

Nov 9th, 2009, 10:16 AM	#6
JessiHD Mum (Mom) Chat Happy BnB Member Join Date: Aug 2009 Location: Birmingham, West Midlands Posts: 1,201	Personally I think it is totally unreasonable for us to be expected to pay tax on top! The SMP comes from the years of NI contributions we've made anyway, so we're getting taxed again!

Status: Offline

Nov 9th, 2009, 10:17 AM	#7
karenal Pregnant (Expecting) Active BnB Member Join Date: Jul 2009 Posts: 230	What they might do is tax you 40% but then you will get a rebate at the end of the tax year, depends how organised your company is, but I would check with your payrol department, Im sure they have done it all before. My husband had the same question, if he gets his £123 SPM and gets taxed as normal, then he will end up with like £90 for the 2 weeks. Im going to check all this with my HR department when I hand my MAT B1 in and sort out my maternity leave.

Status: Offline

Nov 9th, 2009, 10:27 AM	#9
daisyfflur Mum (Mom) Active BnB Member Join Date: Sep 2009 Location: Wiltshire Posts: 679	Thats ok then. My OH has said as much. I consider myself to a fairly well educated person but DO NOT get tax at all, all I know is someone takes a pretty large chunk of my gross wages every month and I'd quite like to see some of it back. I'm never ill, I pay a lot of tax a year and they then want to quibble over £123 a week for a few months. Hardly seems a like fair trade if I'm honest.

Status: Offline

Nov 9th, 2009, 10:38 AM	#10
Helabela Mum (Mom) Chat Happy BnB Member Join Date: Jul 2009 Location: Warwickshire Posts: 2,386	no its not fair at all, very frustrating, i hate money! Im glad hubby has a well paid job otherwise i would be panicking. I have to cancel money going into my savings account and into the joint account for paying bills soon, poor hubbys got to pay it all!

Status: Offline

Similar Threads
If they over pay tax credits	Work & Finance
Do you begrudge paying council tax?	General Chatter
How quick do you pay for stuff on ebay?	General Chatter
Tax on maternity pay	Work & Finance
Tax on SMP	Pregnancy - Second Trimester

User Name		Remember Me?
Password