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Maternity Pay & Tax

I am 14 weeks pregnant and have just realised that SMP is taxable and that you have to pay NI contributions too! As if it isn't going to be hard enough to live on ??108 per week I also currently have a company car so assume I will also have to pay tax on this too!!??
Does anyone have any idea on how much I may potentially be left with after all these deductions?!!
Trying to work out how much I am going to have to save each month in order to have some quality life while on maternity leave is baffling me!!

Thank you!!



  • Does your employer not top up the SMP to match what you're currently earning? I work for the CSA and I'll be getting my full wage (inclusive of SMP) for the full 9 months I'm off long as I go back for a minimum of one month.
  • Wow your employer sounds great, i work for a bank and they only pay full pay for first 3 months then it is SMP!! Any jobs going at your place?
  • hehe, check out Job Centre Plus or your local paper, they advertise in their when they've vacancies, mind you you have to work for 6 months by 15th week of pregnancy.... My employer is pretty good about pregnancy tho, I'm getting a new comfier chair, my desk will be raised when I'm further on and I have to take regular breaks for free!
  • 9 months on full pay - you are so lucky!! I get 6 weeks full, 12 weeks at 50% then the rest SMP, really concerned about how we'll manage when SMP kicks in so trying to save as much as possible now (although that's not proving easy with a new baby to cater for!)
  • Fair play, mine aren't too bad they can be understanding at times!! I think they have to be good nowadays but yours just sound like they REALLY understand - bet the chief exec is female!!
  • Hey FunkyRabbit - I have never heard of a public sector employer paying full pay for the 9 months have you had this in writing that's incredible. Its usually fullpay then halfpay. I think you should share your money with Donna.

    Donna - Is there anyway the Company can take the car back off you? or the person covering you can take it on?

  • Yep got it all in writing and clarified just today, also can return on reduced hours. You're all sounding like it's too good to be true and maybe rightly so, but I work for the government and they have to be seen to be doing things as the government has set out in parliament. saying that, before I started this job I was a nurse for 6 years for the NHS and had the self same provisions for maternity when I had my son, except of course, it was only 6 months then and not the new 9 months. In both these jobs, I can still take unpaid leave once my paid leave ends, however I shan't be. Are there no other civil servants on these boards?? I'd be interested to know whether its same throughtout the civil service.

    [Modified by: FunkyRabbit on February 27, 2007 10:06 PM]
  • Hi. I am a self-employed Registered Childminder, so when i go on maternity leave i am only going to get ??120 per week, which i don't think is taxed (have to check again on that one) from the start, so i don't think i will be off too long. i currently get about ??1500 per month before expenses and tax, so to drop to just over ??400 will be a bit of a shock. Also i don't get any pay for ante-natel appointments or scans. It's a hard life being self-employed
  • Hi Donna

    I'm looking into that myself but don't forget you will still be entitled to your tax and NI allowances. From what I can work out you can earn about ??90 per week before tax and NI. You pay NI at 11% of the balance and then Tax at your standard rate for the balance after the tax allowance. The allowances go up again at the next tax year - 5th April. Have a look on the Government website. it is easy to roughly work out.

    My employer is to the book and i shall be getting 6 weeks at 90% and the rest at the standard ?? 108. It will be extremely hard and i'm currently saving like mad to boost what I will have available each month. Might even have to return to work early!!!
  • i get full pay for 6 months at the moment dont know what will happen in april may be intitled to the 108 for three months after that or fingers crossed they will pay full for another 3 months not banking on that though
  • OMG!! I can't beleive how lucky some of you are. I work for a small company and whilst they do look after us well, I will only get the usual SMP and nothing extra! I don't know how the government expect new parents to survive on around ??400.00 per month, I will be loosing nearly ??800.00 per month and not really too sure how we're going to cope :cry:

    [Modified by: Claire99 on February 28, 2007 11:16 AM]
  • My employer is the same as Donna's - I'll just get the minimum of 90% salary first 6 weeks and then the remainder at ??108 p/w. I am not sure how much we'll be taxed on the ??108, I am hoping not too much as I have keep more than ??400 each month to pay bills as it is so I really will have nowt to live on! I have been saving like mad ever since I found out I was pregnant , and thanks to generous mum who has bought practically all my baby gear, I should be able to afford to eat at least while I'm off work.

    If anyone knows how much tax and NI is usual to deduct from the ??108 please let us know!


    Kate xx
  • from what I can work out NI has a weekly allowance of about ??97 with no decuctions and 11% of the balance and according to 2007/08 tax allowances we should get ?? 100 tax free per week and then 22% of the balance deducted so we should take at least ?? 100 if not ?? 105 per week after deductions. Hope that makes sense!!!
  • maternity pay is poo! i finish work on friday, god knows how im gonna cope on ??400 a month!! image not good!
  • Thanks for your answers - seems like some companies have fab maternity policies and some (mine included!) are terrible!!
    I'm going to have a chat with our accountant and work out how little money I'll be left with if I keep my car & if I hand it back! The only downside then is that I will then have to buy myself a car to get around in and insure it!! I don't know - it all seems so confusing!! Makes me wonder how people afford having more than one child!!!
    All this worrying aside, my husband & I are really excited and are looking forward to the next scan!! Our only dilemma then is whether to find out we're having a boy or a girl!!!
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