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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Thanks all for your help

@Charlotte thank you so much

It could be that your tax code is lower than a standard code like the one mentioned above. It being reduced could be down to a previous underpayment of tax or a reduced tax code for a flexible benefit like private medical cover. But you will get the tax free threshold of that then pay 20% of any earnings over that code split into 12 for monthly or 52/53 for weekly pay. Not sure on your personal circumstances but if your earnings have been fairly consistent since April Martin Lewis has a really useful (and accurate) net pay calculator on his website so you might find this useful to get an idea of what you will take home will be. If your tax code is BR for any reason then you would pay 20% on all but that seems unlikely based on your question. Hope that helps, sorry for the ramble 😬 feel free to message me xxx

Yes, it’s taxed as any other income is.. also pension deductions if you are in a scheme.

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.

It is taxed. Unless you haven't earned above the tax free allowance this financial year x

@Charlotte what’s the criteria that will affect this? Thanks

Depends on your tax code and previous earnings within the this financial year x

Not taxed hon x

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

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