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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!!
Donna!!
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!!
Donna!!
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Replies
Donna - Is there anyway the Company can take the car back off you? or the person covering you can take it on?
[Modified by: FunkyRabbit on February 27, 2007 10:06 PM]
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!!!
[Modified by: Claire99 on February 28, 2007 11:16 AM]
If anyone knows how much tax and NI is usual to deduct from the ??108 please let us know!
Thanks,
Kate xx
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!!!
xx