You won't need to pay back statutory maternity pay or Maternity Allowance, even if you don't return to work. Check what type of maternity pay you're entitled to if you're not sure.
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.
Freelancing during maternity leaveThings are a little different if you're an employee who dabbles in freelance work on the side. While you're on maternity leave from your permanent job, you can do as much self-employed work for other companies (i.e. not your regular employer) as you like without affecting your SMP.
Your employer pays your SMP in the same way as your salary is paid. They deduct any tax and National Insurance contributions. Your employer can claim your SMP back from HM Revenue and Customs (HMRC).
How much statutory maternity pay you'll get. Your statutory maternity pay lasts up to 39 weeks, made up of: 6 weeks getting 90% of your average weekly pay (before tax) 33 weeks getting either £151.20 a week or 90% of your average weekly pay (before tax) - whichever is less.
Returning to work for at least the eight week qualifying period for SMP may boost the pay you receive for your second maternity leave period. This is because the first six weeks of SMP are paid at 90% of the average earnings you received during the eight week qualifying period.
When keeping in touch days can be worked1 day at a time. a few days at a time, or.
Coping Financially On Maternity Leave
- Save in advance. I've put this one at the top.
- Budget. Now is the perfect time to get your budget in order.
- Get your bills reduced in advance.
- Don't go crazy on the baby stuff.
- Declutter and sell stuff.
- Spread out your maternity pay.
- Take your KIT days.
- Get your side hustle on.
Sure Start Maternity Grant
- Pension Credit.
- Income Support.
- Universal Credit.
- Income-based Jobseeker's Allowance.
- Income-related Employment and Support Allowance.
- Child Tax Credit at a higher rate than the family element.
- Working Tax Credit which includes a disability or severe disability element.
25 Ways to Make Money While on Maternity Leave
- Find Unclaimed Money.
- Sell Gift Cards.
- Freelance.
- Rent Out an Extra Space in Your Home.
- Start Investing.
- Recycle.
- Sell Your Art.
- Save with Online Coupons.
You can work a 'keeping in touch' day from six weeks after the birth or adoption of your child. If you're on employer-sponsored maternity leave, you can check with your human resources department or your employment agreement about the conditions of that leave.
If you are ill you are entitled to take sick leave in the normal way at the end of any period of maternity, paternity, adoption, or shared parental leave. You should follow the normal sickness procedures. You are counted as being back at work (and on sick leave) if you cannot return to work because of illness.
You can work under your contract of service for the employer paying you SMP for up to 10 days during your MPP without losing any SMP . KIT days are intended to help you keep in touch with your workplace and allow you to do some work during your Maternity Pay Period without affecting your SMP .
An employer can ask an employee to return earlier than planned from unpaid parental leave if they no longer have responsibility for the care of the child. The employee has to return to work if their employer makes such a request. An employer has to give written notice to the employee stating the return to work date.
The earliest your paid maternity leave can start is the 11th week before your baby is due. If your baby is born early, your leave starts the day after the birth. You don't have to take the 52 weeks you're entitled to, but you must take at least two weeks off work following the birth of your baby.
In the case of a pregnant employee, leave can start up to six weeks before the expected date of birth, or earlier if the employer and employee agree. If the employee is not giving birth to the child, leave starts on the date of birth or placement of the child.
Maternity leave can only be taken in one block but shared parental leave can be taken in blocks of leave (within a year from the birth).
Secondly, all employers must provide suitable facilities for a pregnant woman or nursing mother to rest, which should include somewhere to lie down. Under the Working Time Regulations 1998 you are entitled to at least 20 minutes uninterrupted rest break if you are working more than 6 hours.
