20 Ways to Cut the Cost of Christmas

Although the shops were gradually reminding us that Christmas was on its way back in August, if you’re anything like me, you’ll only really be starting to think about it now that Halloween and Bonfire Night are over. 

Christmas can be such an expensive time but there are lots of ways you can cut the cost:

1. Write a list of the people you need to buy presents for, set a budget and jot down some ideas.  If your list involves children, make a few calls to see what they are into at the moment.  Buy a few things each week to spread the cost.  The earlier you start the better!

2. Extended families could organise a secret Santa type present buying rule.  Every family member buys a present for one another (drawn from a hat or by using an online generator such as www.secretsantaelf.co.uk).  Set a limit per person and stick to it. 

3. Agree to only buy presents for the children in your extended family.

4. Consider making some homemade gifts.  I love pinterest.com for this kind of thing – it’s full of inspiration.  Festive jars of jam or chutneys.  Some home baked biscuits wrapped in Christmas colours.  Homemade bath salts.  There are so many easy to follow “how to” guides out there, you don’t have to be a craft expert.

5. Offer vouchers for your time instead of presents (these are great for the kids to do too!).  Here are some examples:

An evening babysitting

A day tidying the garden

An evening meal (cooking and serving)

Dog walking

Car Washing

6. How about creating some word art?  Sites such as www.wordle.net will gather meaningful (or just plain random!) words together and create a picture for you for free.  Print it out, stick it in a frame and voila - a lovely and unique present!

7. Make decorations with the kids.  Old favourites like paper chains, paper snowflakes and stain glass windows (black card with shapes cut out and tissue paper stuck over) are simple and fun.  Again, check out pinterest.com for some more adventurous ideas!

8. Look out for the sales leading up to Christmas.  Sign up to the Money Saving Expert’s weekly email and you’ll often get advance notice of these.  

9. Use loyalty points towards the costs of gifts. 

Tesco Clubcard vouchers can be exchanged for magazine subscriptions, days out and lots of restaurant deals.

Nectar Card points can be used at a variety of different places.

Boots’ Advantage card is great for treating others (or yourself!)

10. Compare prices before you buy any presents and find the best deals.    Use sites such as www.kelkoo.co.uk and www.megashopbot.com

11. Search for discount codes when shopping online.  www.vouchercodes.co.uk and www.myvouchercodes.co.uk are popular.

12. Sign up to cashback sites such as www.topcashback.co.uk and www.quidco.com and buy through them for all your online shopping.

13. Ebay is always a great place for a spot of Christmas shopping and finding some bargains. 

14. Local Christmas Fayres are brilliant for finding local handmade and unique gifts and it's great to support small independent businesses - you’ll be helping the local economy too!

15. Make a list of all the Christmas food essential and start stocking up on the non-perishables now to spread the cost over the coming weeks.  Think about what you can make yourself and look out for festive favourites that are reduced that you can freeze for the big day (like nice stuffing, pigs in blankets or joints of meat).
    I love the Feed Your Family for £20 Facebook Page and website. They have some fantastic Christmas food tips here:  www.facebook.com/fyf20quid/

16. Consider donating to charity rather than sending Christmas cards.  I’ve done this for several years now.  I don’t send cards to my friends who are on Facebook, I just post a festive message on Christmas Eve and add a fun video (see below) or festive photo.

17. Have a toy clear out to make room for the new things Santa will bring!  Sell your unwanted items on local Facebook selling pages or in the local paper for free and make a few extra pennies to go in the Christmas pot.

18. Enter competitions to try and win some Christmas presents!  Money Saving Expert has a great guide to comping. 

19. Write your Christmas cards before the last second post date of 20^th December and use second class stamps to post them.
    For a full list of last posting dates visit: www.postoffice.co.uk/christmas/last-posting-dates

20. Some free Christmas fun:

Personalised video from Santa: www.portablenorthpole.com/home

Elf Yourself – fun personalised Christmas greetings: www.jibjab.com/holidays

There are some ideas for you.  

What are your top tips for cutting the cost of Christmas? 

Teacher Tax Rebates

Summer holidays – a time for Teachers to take a break and finally get around to doing all those little jobs that they just can’t fit in during term time.  Like, for example, claiming a tax rebate from HMRC on your fees and subscriptions or for sports clothing for PE.

Many Teachers are not aware that such refunds are due to them.  There are many companies who will charge you a fee and percentage to take care of this for you (please double check the Terms and Conditions if you want to use one - they could keep much more than you had bargained for) but applying for your own refund for the price of a stamp is perfectly possible!

If you can answer yes to these questions, you could be due a tax rebate:  

1.  Have you paid union fees or fees to a professional body (including the GTC) in the last 4 years? Please check against the list of the qualifying bodies here:    www.hmrc.gov.uk/list3/index.htm
2. Does your work require you to wear specific items of clothing for which you are required to wash and maintain such as:

·         Sports clothes for the teaching or supervising of P.E.

·         Laboratory Coat

·         Protective Clothing

·         A uniform with your Employer’s logo 

      How do I Claim?

      Claims can be made going back 4 years and you may also be entitled to an increase in your personal tax allowance for the current tax year so that you pay less tax.  I have put together a letter template which you can add your own details to.  Please complete as instructed, pop it in the post to HMRC and await a reply (hopefully with a cheque!).  

      All it will cost you is the stamp and any money you receive is all yours to keep! 

Apply for a Teacher tax rebate for Union / Professional Body Fees and Clothing.

If only the clothing aspect applies to you, please see: 

www.pennies4parents.blogspot.co.uk

      What Next?

      Please be patient.  HMRC can take up to 3 months to process the rebates.  If you have not heard anything from them after that time, you can contact them on the Employee Helpline number: 0300 200 3300

       If you do send a letter off, please do let me know how you get on by leaving a  comment below.  Good luck!

© Pennies 4 Parents July 2015

Statutory Maternity Pay 2017 - 2018

To help you take time off work with your baby, if you are an employee, you may be entitled to Statutory Maternity Pay (SMP) which is a payment from the government and is paid to you via your employer. 

(You may also be lucky enough to have this enhanced by a company maternity pay scheme).

Do I qualify for Statutory Maternity Pay (SMP)?

To qualify for SMP you must meet the following criteria:

Have been in your current employment continuously for at least 26 weeks prior to the 15th week before the week your baby is due (the Qualifying Week). In plain terms, you should have started the job before you fell pregnant and still be in the same employment at approximately week 26 of your pregnancy. 
If you are made redundant or resign from your job after the qualifying week but before your maternity leave was due to start, your employer will still be obliged to pay your maternity pay if you are eligible.

You must be earning on average an amount which at least equals the Lower Earnings Limit (LEL). The LEL for 2017/2018 is £113 per week or £490 per month.
This must be the case on the Saturday at the end of your qualifying week.

You must give your employer evidence that you are pregnant. This is the form MATB1 that you will receive from your midwife around week 21 of your pregnancy.

You must give your employer notice of your intention to take maternity leave in writing on or before the qualifying week (ie by week 26 of your pregnancy.) 

For help working out your qualifying dates and weeks, visit:    

www.gov.uk/pay-leave-for-parents

How is SMP calculated?

SMP is calculated over an average of 8 week’s (if you are paid weekly) or 2 month’s (if you are paid monthly) worth of gross earnings before the Saturday at the end of your qualifying week. 

The more eligible pay you receive during these periods, the more SMP you will receive for the first 6 weeks of your payments. 

The payments used must be eligible for national insurance deductions.

Examples of these are:

Salary or basic pay/hours

Overtime

Bonus payments

Sick pay

Holiday pay

Commission

If you are paid monthly, the 2 payments are multiplied by 6 to give an annual average.

This is then divided by 52 to find an average weekly amount.

If you are paid weekly, an average of the 8 weeks is used to find the average weekly amount.

How much SMP will I get?

SMP is paid as follows:

EITHER:

6 weeks at 90% of the average weekly amount

followed by 33 weeks at the statutory amount

(for the 2017/2018 tax year this is £140.98 per week)

OR:

39 weeks at 90% of your average weekly amount if your average weekly amount is less than £140.98

Some companies offer additional occupational maternity pay, so please check your contract and speak to your HR Department.

(SMP is subject to tax and national insurance.)

NB    If you are due a pay rise while you are on your maternity leave, your average weekly amount will need to be re-calculated to include it.

Workplace Pension

If you are in a workplace pension scheme, your Employer must continue their pension contributions at their normal rate for the period you are receiving Statutory Maternity Pay.  Your contributions will reduce based on the amount of SMP you receive. Please remember, if you opt out of the pension scheme at this time, your Employer will stop contributing to the scheme too.

Holiday Entitlement

Your holiday entitlement continues to accrue as if you were at work while you are on Maternity Leave.  This is worth remembering should you wish to stagger your return to work or go back on reduced hours.  If your holiday is in credit before you take your Maternity Leave, you could request to take the holiday accrued to date before your Maternity Leave starts.

Keeping in Touch (K.I.T.) Days

You are allowed 10 K.I.T. Days during your maternity pay period (while you receive your SMP).  These are days when you can go into work to stay in touch with what’s going on or for training.  It could just be for half an hour or a full day.

You are not usually paid extra for these days, but you do not lose any of your SMP for that week.  (Some employers may offer additional payment on top of the week’s SMP so please check your contract.)

Don’t exceed the 10 days though as you will lose the whole week’s worth of SMP, and don’t do a K.I.T. day in the same week (seven day period) as you go back to work as you will also lose the SMP for that week.

It is important to be aware of all of your Employee rights when you are on Maternity Leave.  There is a useful guide here: 

https://www.workingfamilies.org.uk/articles/a-mothers-rights-during-maternity-leave/

I don’t qualify for SMP – what can I do?

If you do not qualify for SMP from your employer or you are self-employed, you may be entitled to Maternity Allowance or Employment and Support Allowance which is paid to you directly by the government. 

For more information visit: www.gov.uk/maternity-allowance or see our post "Help! I don't qualify for SMP"

For further help and information, I recommend the following websites:

www.workingfamilies.org.uk

www.maternityaction.org.uk
www.acas.org.uk

If you have a question, please do leave a comment or contact me via email if it is of a more 
personal nature.

Contact Pennies 4 Parents

© Pennies 4 Parents November 2017

Help! I Don't Qualify for Statutory Maternity Pay (SMP)

Perhaps you don’t qualify for Statutory Maternity Pay (SMP) from your Employer as you haven’t worked there long enough or you don’t earn enough. 

Perhaps you are unemployed or maybe you are your own boss and SMP doesn’t apply to you. 

Don’t worry – there is other help available!

Maternity Allowance

If you are an Employee

Your employer should give you a form called SMP1.  This explains why they can not pay you SMP.  Call Jobcentre Plus on 0800 055 6688 and ask for a MA1 claim form or download one from HERE.

This is a form to apply for Maternity Allowance.  You will need to send in the SMP1 form, MATB1 form from your Midwife and proof of earnings in the form of original payslips.

You must have worked at least 26 weeks of the previous 66 week period before the week your baby is due.  In 13 of those weeks, you must have earned at least £30 per week.  

When you are collecting your payslips, choose the 13 weeks where you earned the most. If you are paid monthly, send 4 months worth of payslips in with your highest earnings.

The standard weekly rate of Maternity Allowance is £139.58.  

If your average weekly amount is less than this, you will receive 90% of that average amount.

Maternity Allowance is paid for 39 weeks.

For the recently unemployed

Mums to be who have recently become unemployed may also qualify for Maternity Allowance.  If you have worked for 26 weeks during the 66 weeks before your baby is due and have earned more than £30 in 13 of those weeks, you can apply as above.

For Self Employed Mums-to-be

Call Jobcentre Plus on 0800 055 6688 and ask for a MA1 claim form or download one from:

www.dwp.gov.uk/advisers/claimforms/ma1_print.pdf

HMRC will be asked if your Class 2 National Insurance Contributions are up to date.  If they are, you are entitled to the full weekly rate of Maternity Allowance of £139.58 for 39 weeks.

If you have a Small Earnings Certificate, your maternity allowance will be treated as if you earn £30 per week and so will receive only £27 per week (90%) for 39 weeks. 

Perhaps consider cancelling your Small Earnings Certificate as soon as you know you are pregnant and start to pay the full Class 2 NI Contributions (currently £2.75 per week).

Please read our guest post Self Employed? Protect your right to Maternity Allowance 

Recent changes could mean that new Mums who are not employed or self employed but have helped out in their self-employed Husband's or Civil Partner's business on an unpaid basis, are entitled to 14 weeks of Maternity Allowance.

For more information on this and a full guide to the Maternity Allowance, please refer to the claim form or: www.gov.uk/maternity-allowance/eligibility

If you do not qualify for Maternity Allowance

You my qualify for 8 week’s worth of Employment and Support Allowance (ESA) instead.  You need to be on a low income but also have paid some National Insurance over the past few years.

ESA replaced Incapacity Benefit.  Mothers are considered as having  “limited capability to work” due to pregnancy from 6 weeks before the baby is due until 2 weeks after.

You can fill in the MA1 form for Maternity Allowance as above.  Some of the question will not apply to you so leave them blank and in Part 9 “Other Information” state that you would like your claim to be considered for ESA.

For more information visit: www.gov.uk/employment-support-allowance

Quick Guide to Tax Credits

Tax Credits are payments from the government that you could be entitled to if you have children.  There are 3 different types of tax credits:

Child Tax Credits: if you are responsible for children, you may qualify for Child Tax Credits. You don’t have to be working to claim Child Tax Credits.

Working Tax Credits: these are available for people who do or don't have children and who work 16 hours or more a week, but are on a low income.

Child Care element of Working Tax Credit: help with your childcare costs. 

You may qualify for these even if you don’t qualify for Working Tax Credits.

Your entitlement will depend on your household income.

Visit: www.gov.uk/qualify-tax-credits-quick-questionnaire to see if you qualify – you may be pleasantly surprised! 

Unfortunately you can not claim online so you will need to get a claim pack by phoning the Tax Credit Helpline:

0345 300 3900

It’s REALLY important to keep the Tax Credit office up to date with ANY changes in your personal circumstances and income as soon as they happen.  That way, you are more likely to avoid being in an overpayment situation and face having to pay large sums of money back, and you can ensure you are receiving the right amount.

For more information visit: www.gov.uk/child-tax-credit

Other help for families

To see if you qualify for any other help, use a benefits checker such as:

www.moneysavingexpert.com/family/benefits-check

or

www.turn2us.org.uk/benefits_search.aspx

Self Employed? Protect Your Right to Maternity Allowance

Filling in a form to claim Maternity Allowance when you are a self employed Mum sounds pretty straight forward, but there is a MAJOR issue if you hold a Small Earnings Exemption Certificate.  A major issue that could see you losing out on thousands of pounds!

I came across this fantastic article by Frances Weir on Helen Lindop's great website www.businessplusbaby.com and felt I had to share it with you - it is too important to miss if you are a self employed mum-to-be or thinking of becoming one. 
A HUGE thank you to Frances and also Helen for letting me feature it.

The rules state that you must register with HMRC as self-employed within 3 months of starting trading. When you register, you will be given the choice of either:

• paying Class 2 national insurance contributions (currently £2.75 per week),

or

• completing a Small Earnings Exception Certificate (if you expect your earnings to be less than £5,885 a year), thus not pay any national insurance.

You can choose to pay Class 2 contributions regardless of how low you expect your income to be. But (if eligible) the obvious temptation for start-ups is to opt for the Small Earnings Exception Certificate – it saves you £2.75 a week at a time when you’re unlikely to be making any profit.

However, this has huge financial implications in terms of Maternity Allowance.

If you have been registered as self-employed for at least 26 weeks in your ‘test period’ (the 66 weeks before your due date), you’ll get some MA. If you have paid Class 2 contributions for at least 13 weeks in your test period, you’ll get the maximum rate (£138.18 a week for 39 weeks). But if you have held a Small Earnings Exception Certificate you’ll only get the minimum rate (£27 a week for 39 weeks); a huge £4,336.02 difference over the maternity period.

As a comparison, 13 weeks of Class 2 contributions costs £35.75 – go do the maths!

And here’s the important small print: for any week you have held a Small Earnings Exception Certificate, you’ll only ever qualify for the minimum MA, even if you have been voluntarily paying Class 2 contributions as well (this is to stop you getting pregnant and then paying Class 2 contributions in order to get maternity allowance!). If you want to work the system in this way, you must get your Small Earnings Exception Certificate cancelled first. The cancellation takes about a month to process so obviously you would want to do this soon after getting pregnant to ensure you have a clear 13 weeks of paying Class 2 contributions without holding a Small Earnings Exception Certificate, within your test period.

Not sure you will get pregnant? Opting to pay Class 2 contributions is a no-risk strategy – you’re entitled to reclaim the contributions made in a financial year if you subsequently find that your earnings fall below the £5,885 threshold of the Small Earnings Exception Certificate (if you plan to do this, look into it early on to ensure you meet the deadlines involved).

Don’t forget, Class 2 contributions also count towards other important benefits for the self-employed mum – the basic state pension, employment and support allowance and bereavement benefit.

I hope this clears up some of the confusion regarding MA. There is a great deal of mis-information on the internet – I’ve seen articles on mumpreneur websites recommending that start-up business mums opt for the Small Earnings Exception Certificate without any discussion of the impact it has on maternity benefits. Self-employed mums need to be aware of the financial implications of holding a Small Earnings Exception Certificate if there is any chance they might become pregnant in the future. And if anyone reading this is pregnant but holds a Small Earnings Exception Certificate, act fast to extinguish it!

This article is not applicable to women who are both self-employed and employed.
Please check the latest advice from the Department of Work and Pensions before relying on information presented here.

Frances and Helen are on a mission to make sure every self employed mother gets the maternity pay they are entitled to, so please spread the message!

How to Apply for a Tax Refund from HMRC

Millions of people paid too much tax in the last tax year which finished on April 5th.
Are you one of those people who are now entitled to a tax refund?
Read on and find out!

1)  Find your final Tax Code for 2014 / 2015
If you haven't had it already, your P60 (the end of year statement) detailing your earnings in the job you were in on 5th April should be handed to you soon (and legally you have to have it by 31st May).  
If you had more than 1 job on 5th April you should receive a P60 from each job as long as you earned more than £109 per week or £473 a month at least for one pay period.
  
On your P60 you will find your final tax code.  If you don't have your P60, dig out your final payslip from the last tax year or your P45 from the last job you had.  Is the tax code 944L with nothing after it?  In that case it is unlikely you are due anything back (but read on as it might be worth checking just in case!).

If the tax code has an X or a "month 1" after it, it is possible you may be due a tax refund.

2)  Is your code different to 944L and do you know why?  
Perhaps you had 2 or more jobs and your tax allowance was split.  Perhaps you paid Basic Rate (20%) tax at one job and had all of your taxable allowance at another.
Perhaps you received taxable benefits in your job (health care insurance etc).
Perhaps you receive a pension as well as income from your job.

If it is different and you don't know why, call HMRC on 0300 200 3300 and ask them to explain.

3)  Check the Figures
It's always worth checking the figures on your P60, even if your tax code seems to be correct.

HMRC have a useful tax calculator on their website.   

4)   Contact HMRC
If you think a refund is due, hopefully HMRC are already aware too, but it's definitely worth letting them know that you know as they are not fond of sending out cheques!
Give them a call on 0300 200 3300 and tell them that you think you have overpaid tax for the last tax year.


Alternatively, you can write to them instead and enclose a copy of your P60, final payslip or P45.  
Send the letter to: 

HM Revenue & Customs

Pay as You Earn

PO Box 1970

Liverpool

L75 1WX

If you would like a FREE draft letter to send, please send an email to info@zestpayroll.co.uk and I will send you one.


PLEASE REMEMBER:  
It is up to you to keep HMRC informed if you change your name or address.  
If you need to update your information visit: 

www.hmrc.gov.uk/report-changes/individual/name-address.htm

©    www.zestpayroll.co.uk          May 2014

Paternity Pay & Leave 2013 / 2014

New Dads (or the partners of new mothers) are entitled to 2 weeks Ordinary Paternity Leave when the baby is born and may be entitled to Ordinary Paternity Pay while they are away from work.

To qualify for Ordinary Paternity Leave, he must have been with his employer for at least 26 weeks by the end of the 15th week before the baby is due.

He must also be either the:

• Biological Father

or

• Mother's husband or partner (including same-sex relationships)

He needs to let his employer know he wants to take paternity leave by the
fifteenth week before the baby is due.
A Self Certificate (form SC3) to pass to his employer can be printed off from the HMRC website:  

www.hmrc.gov.uk/forms/sc3.pdf


Ordinary Paternity Leave should either be taken as 1 week or 2 consecutive weeks. It can not be split.

Paternity leave can not start until the baby is born and must be taken within 56 days of the baby being born.

 
Ordinary Statutory Paternity Pay (OSPP)
If the father/partner qualifies for Ordinary Paternity Leave, and earns more than £107 a week, he qualifies for Ordinary Statutory Paternity Pay (OSPP) too.
This is paid at £136.78 per week or 90% of his average weekly earnings if they are less than this.

Your Employer may offer additional Paternity benefits so check your contract and speak to your HR department.



Additional Paternity Leave & Pay
Since April 2011, fathers/partners also have the right to up to 26 weeks' Additional Paternity Leave if the child's mother has returned to work before the end of her Statutory Maternity Pay period. This is in addition to the 2 weeks Ordinary Paternity Leave they are entitled to.
He may also receive Additional Statutory Paternity Pay if the child's mother has returned to work before the end of her maternity pay period.
Additional Paternity Leave can be taken from 20 weeks after the child is born.
It must finish before the child's first birthday.
Additional Statutory Paternity Pay is paid at the same weekly rate as the OSPP and can be paid for a maximum of 19 weeks (to complete the Statutory Maternity Pay period of 39 weeks for the mother).  For more info see: www.gov.uk/employers-additional-paternity-pay-leave

Self Employed New Dads

Unfortunately, there is no paternity pay equivalent for self employed dads (which is rather unfair
I think!).

For more information visit:

www.gov.uk/paternity-pay-leave

Great websites for dads-to-be and new dads are:

www.dad.info

www.daddynatal.co.uk

Work Uniform Maintenance Tax Rebate

Have you worn a uniform as an Employee in the last 6 years?

Were you paying tax at that time?

Did you wash, mend or replace it yourself?

Then you could be eligible for a tax rebate!

If you have had to wear a uniform for work in the last 6 years and you are responsible for keeping that uniform washed and repaired, it is worth contacting HMRC to ask if you are eligible for a Work Uniform Maintenance tax rebate.

Even if your uniform doesn’t have a recognised logo but you only wear the clothes at work, it is worth putting a claim in.

I spotted this on www.moneysavingexpert.com/reclaim/uniform-tax-rebate

Have a look at the original post for more information.

I have put together a couple of draft letters for people to download, edit and send to HMRC to make a claim.

If you currently wear a uniform and have had no other employment that you may be eligible to make a claim for in the last 6 years click HERE.

If you have had more than 1 job in the last 6 years where you have worn a uniform and may be eligible to make claims click HERE.

Please feel free to download, amend and send it to HMRC, but PLEASE let me know by commenting below and come back and tell me how you get on in a couple of weeks.

Good luck!

Statutory Maternity Pay 2013 - 2014

To help you take time off work with your baby, if you are an employee, you may be entitled to Statutory Maternity Pay (SMP) which is a payment from the government and is paid to you via your employer. 

(You may also be lucky enough to have this enhanced by a Company maternity scheme).

Do I qualify for Statutory Maternity Pay (SMP)?

To qualify for SMP you must meet the following criteria:

Have been in your current employment continuously for at least 26 weeks prior to the 15th week before the week your baby is due (the qualifying week). In plain terms, you should have started the job before you fell pregnant and still be in the same employment at approximately week 26 of your pregnancy. 
If you are made redundant or resign from your job after the qualifying week but before your maternity leave was due to start, your employer will still be obliged to pay your maternity pay if you are eligible.

You must be earning on average an amount which at least equals the lower earnings limit (LEL). The LEL for 2013/2014 is £109 per week or £473 per month.
This must be the case on the Saturday at the end of your qualifying week.

You must give your employer evidence that you are pregnant. This is the form MATB1 that you will receive from your midwife around week 21 of your pregnancy.

You must give your employer notice of your intention to take maternity leave in writing on or before the qualifying week (ie by week 26 of your pregnancy.) 

For help working out your qualifying dates and weeks, visit:    
www.gov.uk/calculate-your-maternity-pay

How is SMP calculated?

SMP is calculated over an average of 8 week’s (if you are paid weekly) or 2 month’s (if you are paid monthly) worth of gross earnings before the Saturday at the end of your qualifying week. 

The more eligible pay you receive during these periods, the more SMP you will receive for the first 6 weeks of your payments. 

The payments used must be eligible for national insurance deductions.

Examples of these are:

Salary or basic pay/hours

Overtime

Bonus payments

Sick pay

Holiday pay

Commission

The qualifying payments are added together and multiplied by 6 to get an annual average. 

This is then divided by 52 to find an average weekly amount.

How much SMP will I get?

SMP is paid as follows:

EITHER:

6 weeks at 90% of the average weekly amount

followed by 33 weeks at the statutory amount

(for the 2012/2013 tax year this is £136.78 per week)

OR:

39 weeks at 90% of your average weekly amount if your average weekly amount is less than £136.78

Some companies offer additional occupational maternity pay, so please check your contract.

(SMP is subject to tax and national insurance.)

NB    If you are due a pay rise while you are on your maternity leave, your average weekly amount will need to be re-calculated to include it.

Keeping in Touch (K.I.T.) Days

You are allowed 10 K.I.T. Days during you maternity pay period (while you receive your SMP).  These are days when you can go into work to stay in touch with what’s going on or for training.  It could just be for half an hour or a full day.

You are not usually paid extra for these days, but you do not lose any of your SMP for that week.  (Some employers may offer additional payment on top of the week’s SMP so please check your contract.)

Don’t exceed the 10 days though as you will lose the whole week’s worth of SMP, and don’t do a K.I.T. day in the same week (seven day period) as you go back to work as you will also lose the SMP for that week.

I don’t qualify for SMP – what can I do?

If you do not qualify for SMP from your employer or you are self employed, you may be entitled to Maternity Allowance or Employment and Support Allowance which is paid to you directly by the government. 

For more information visit: www.gov.uk/maternity-allowance

For further help and information, I recommend the following websites:

www.workingfamilies.org.uk

www.maternityaction.org.uk/index.html
www.acas.org.uk

If you have a question, please do leave a comment or contact me via email if it is of a more personal nature.

Contact Pennies 4 Parents