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Posted : Sep 24, 2008 9:17:12 AM
Subject : Tax on maternity pay
Do you get taxed on MA? I just recieved my first lot of SMP after the first six weeks of my wages at 90%...what a shock to the system! Even though I had worked out what I would get...I still got £24 less due to tax and NI!! It's the time when every penny counts and they still take some off you!! Grrrr!!
My friends sister has just had a baby and she told me that you dont get taxed on MA...???/ Is this true out of interest?
Can you ring the Tax people and tell them your earnings have dropped....I was wondering if I was still on the same tax code from before I started maternity leave....or is this not the case? Im crap at these things ha ha xxx 
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Mrs.E
Joined : May 05, 2008
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Posted : Oct 07, 2008 12:51:00 PM
I was thinking that SMP is def taxed and NI. I think that maternity alllowance is different and for people who earn less then £90 pw and is based on NI contributions made.
I wonder whether if/when you return to work you will get a tax rebate or something to level it out as you will still have the same tax code.
Thats what I'll be hoping for. It seems so unfair that they tax us on SMP, you'd think they'd want to make it easier to look after our babies not harder!
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lixiedixie
Joined : Jan 02, 2008
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Posted : Dec 01, 2008 7:15:36 PM
I thought the same as you...i thought i'd clear the £117 but was informed it is taxed.
Its a nightmare isn't it as that weekly wage is juts not enough.
You may well get a tax rebate but depends on how long you're off work. I'm going back after 6 months so my earning will exceed the £6k in that tax yr as i would have earned over that.
I find it really frustrating...yes you can have a yr off work and still return to your job and yes 33 weeks are paid but its just not enough. My friend worked part time so mat pay wasn't much different from what she was earning.
For me i'll be over £1000 down.
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Cas1980
Joined : Aug 06, 2008
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Posted : Dec 10, 2008 12:05:30 PM
Have checked with my employer and it's definitely taxed! what a cheek! It's not like we get much as it is!
looks like i'll be going back to work after 6 months rather than the 9 I'd planned to take!
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sally322
Joined : Mar 06, 2008
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Posted : Jan 15, 2009 12:03:23 PM
its definately taxed but you can contact family tax credit people and let them know your income has dropped and they will recalculate your tax credits mine went up, not much but every little helps.
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el-07
Joined : Nov 02, 2007
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Posted : Jan 18, 2009 10:54:27 PM
i receive maternity allowance as i wasnt in my job for the qualifying period for smp, as i have been in continous employment i receive the full 117.18 and its not taxed, and its paid for 39 weeks, its mad really, so you are actually better of starting a new job when you are just pregnant as you dont qualify for smp but you do get the full maternity allowance, i have also received all my tax back that i had paid while working as my earning have not gone up due to being on ma. and will not have earny any more before the end of the tax year. the system is completely wrong!
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