Is maternity pay subject to tax and NI?

Your employer pays your SMP in the same way as your salary is paid. They deduct any tax and National Insurance contributions.

Do you get taxed less on maternity pay?

Home / Resources / Pay & Benefits / What is Maternity Pay? / Is Maternity Pay Taxable? Yes, maternity pay is taxable. An employee receives deductions for tax and National Insurance on their Statutory Maternity Pay (SMP) just like when they receive a normal wage slip.

Can I claim tax back on maternity pay?

All Maternity Pay is taxable. (However Maternity Allowance as a benefit is not.) You may have heard stories of other mums getting big tax refunds when they went on maternity leave but to qualify for the refund you have to actually have paid the tax in the tax year. This is unlikely in this case.

Is maternity pay calculated before tax?

Your statutory maternity pay lasts up to 39 weeks, made up of: 6 weeks getting 90% of your average weekly pay (before tax)

Is there a limit on maternity pay in the UK?

If you qualify for Statutory Maternity Pay (SMP) it is paid for a maximum period of 39 weeks. It is paid: for the first six weeks at 90 per cent of your average gross weekly earnings with no upper limit

When to claim maternity allowance in Northern Ireland?

You can claim Maternity Allowance as soon as you have been pregnant for 26 weeks. Payments can start 11 weeks before your baby is due. This information is for people in Northern Ireland. If you live in England, Scotland or Wales, visit GOV.UK

How does Statutory Maternity Pay and PAYE / NI work?

The extra 3% compensates is for employer’s National Insurance payable on Statutory Maternity Pay SMP. Where we are preparing your payroll the recovery of SMP, OSPP, ASPP calculations are already made within the service; automatically recovering SMP, OSPP, ASPP as you pay your PAYE/NI contributions.

Do you have to pay tax on maternity leave?

If an employee takes additional maternity leave (anything beyond 39 weeks) you don’t have an obligation to pay them for their time off, but they might receive a tax refund for any tax paid during their tax code for the current year, or through a cheque from the HMRC.

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