and if so surely its a reduced amount? does it matter if your not returning?

SMP is taxable as it's considered replacement earnings, rather than a social security benefit.

is it a reduced amount mrsAmanda? cos i wont be going back.

[Modified by: mrskc on November 25, 2008 08:24 PM]

I don't think so, it'll be at your standard rate of tax, depending on how much you earn. Once we get to the end of the financial year, it'll be adjusted, or you'll get a rebate. From the new tax year onwards, it won't be taxed until you've earned over the personal allowance limit.

WHAT???!! So do you not receive £117.80 or whatever it is a week, you receive less based on your tax band? Or are you just talking about if you receive more than statutory?

I've just received my first pay slip of complete SMP and I wasn't taxed on it.

I did pay national insurance but it wasn't much

oops double post !

[Modified by: Saint Bertie (Mrs Takers) on April 30, 2009 06:06 PM]

oh I did pay tax on my maternity pay that I received from my company though

I am a full time mum, gave up work after birth of oldest daughter now 2. I qualified for SMP with my baby (5months) via DSS and have to confirm that no deductions are made. I hope that this helps.

If, however, you are paid it via a company you will find that NI will be deducted. They do not tax on it as it's below threshold, the only tax that might be paid is if your company pays you Occupational Maternity Pay.

For info, I used to work in HR and part of my role was looking after Maternity Pay.

I am a full time mum, gave up work after birth of oldest daughter now 2. I qualified for SMP with my baby (5months) via DSS and have to confirm that no deductions are made. I hope that this helps.

If, however, you are paid it via a company you will find that NI will be deducted. They do not tax on it as it's below threshold, the only tax that might be paid is if your company pays you Occupational Maternity Pay.

For info, I used to work in HR and part of my role was looking after Maternity Pay.

Ok, I work in HR at the moment and have found this link for you all to look at....

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnBenefitsPensionsAndMaintenance/DG_10027059

You WILL pay tax on SMP, as someone said earlie on you will receive a rebate at the end of the tax year if it works out that you have not earnt as much as expected. They calculate your tax based on your average monthly earnings. However, if you don'y qualify for SMP and you get the Maternity Allowance this will be tax free as you are probably not a UK tax payer anyway.

Hope this helps.x

Double post! Sorry!

[Modified by: *MW* on May 04, 2009 06:31 PM]