Having a baby — UK tax & benefits guide
Six stops every new UK parent should know about — from the 15-weeks-before-due-date employer notice through to the HICBC self-assessment the year after. Each links to the calculator that does the maths.
The six stops
Statutory Maternity Pay
39 weeks paid: 6 wks @ 90% AWE, then 33 wks @ £194.32/wk (2026-27). Employer pays via PAYE with 92% (103% small employer) reclaimable from HMRC.
Statutory Paternity Pay
2 weeks @ £194.32/wk or 90% AWE (2026-27). From 6 Apr 2026 under ERA 2025, paternity LEAVE is a day-one right; SPP still requires 26 weeks service.
Child Benefit + HICBC
£27.05/wk first child, £17.90/wk each additional (2026-27). High-earner clawback (HICBC) phases in from £60,000 to £80,000 adjusted net income.
Free hours + Tax-Free Childcare
Working parents of under-5s: 15 hrs/wk from 9 months (Sep 2024), 30 hrs/wk from 9 months (Sep 2025). TFC: 20% govt top-up to £2,000/yr/child, up to age 11.
Universal Credit child + childcare elements
Child element £303.94/mo first + £303.94/mo subsequent (two-child limit abolished 6 Apr 2026). Childcare element reimburses 85% up to £1,071.09/mo (1 child) / £1,836.16/mo (2+).
Pension + Personal Allowance planning
A year on SMP often drops household income into lower bands. Strategically, this is when pension contributions at basic rate are LEAST efficient — but it's also when income-based child benefit/childcare rules matter most.
Claims & milestones timeline
- As soon as you're pregnantTell your employer before 15th week before due dateLegal deadline for SMP + paid time off for antenatal appointments. Employer needs MATB1 form from your midwife.
- From 25 weeks pregnantApply for Maternity Allowance if self-employed / ineligible for SMPMaternity Allowance is £194.32/wk for 39 weeks. Claim via MA1 form — backdated up to 3 months.
- By 15 weeks before due dateConfirm leave start date + SMP amount with employerForm SMP1 if declining SMP (e.g. Maternity Allowance is higher for some self-employed). Form MATB1 required.
- Before birthReview Personal Allowance impactSMP for 39 weeks at full rate = £7,578 — well below the £12,570 Personal Allowance if taken across a full tax year with no other income.Income tax calculator →
- 28 days before leavePartner: submit SC3 paternity noticeStatutory 28-day notice before intended leave. Day-one right to paternity LEAVE from 6 Apr 2026; pay still requires 26 weeks service.Paternity pay calculator →
- BirthRegister birth + get NHS numberRequired for Child Benefit claim, free childcare applications, and adding child to health records.
- Within 3 monthsClaim Child Benefit (form CH2)Can backdate 3 months only. Even if you expect full HICBC clawback, tick 'no payment' to still get the NI credit toward State Pension. Especially important for a non-working parent.Child Benefit calculator →
- Returning to work — 31+ weeks inConsider Shared Parental Leave (SPL) + ShPPUp to 50 weeks of SPL shared between parents + up to 37 weeks ShPP from mother's unused SMP pool.Maternity + ShPP calculator →
- From 9 monthsApply for 15 hours free childcareApply via gov.uk/get-childcare-funding — eligibility code needed for provider. Income test £167.84/wk per parent, £100k ceiling.
- AnytimeOpen Tax-Free Childcare account£2 top-up per £8, up to £2,000/yr/child. Useful for holiday clubs, extra hours, or private nurseries.Tax-Free Childcare calculator →
- Earning over £60,000File Self Assessment for HICBCIf either partner's adjusted net income exceeds £60k, the higher earner must register for SA and pay back Child Benefit. From April 2026, HMRC will offer HICBC-via-PAYE as an alternative.HICBC calculator →
- Low household incomeCheck Universal Credit child element£303.94/month per child (2026-27) + childcare element 85% to £1,071.09/month. Two-child limit abolished from 6 April 2026.Universal Credit calculator →
Commonly missed opportunities
- NI credits from Child Benefit — Even if HICBC claws back 100%, the non-working parent gets a State Pension NI credit worth hundreds per year in retirement. Always register, even if you tick the "no payment" box.
- Pension contributions to restore HICBC / PA / TFC — A single pension contribution can pull ANI under £60k, £80k or £100k, restoring Child Benefit, Personal Allowance, and Tax-Free Childcare simultaneously. Effective tax saving routinely exceeds 60%.
- Marriage Allowance — If the lower-earning parent uses less than the full £12,570 PA during maternity, they can transfer £1,260 of it to a basic-rate partner, saving £252/yr. Available if neither partner is a higher-rate taxpayer.
- Backdated CB limited to 3 months — Unlike many HMRC claims, Child Benefit only backdates 3 months. Register early.
- Shared Parental Leave — SPL is still under-used: only ~2% of eligible fathers take it. It allows the mother to return to work while the father takes up to 37 weeks of paid leave from the remaining SMP pool.
- Additional pension contribution during low-income year — SMP year income often dips below the Personal Allowance. This is when you should NOT use relief-at-source pensions (you're wasting 20% basic relief you didn't pay). Switch to net-pay or salary sacrifice during mat leave.
Frequently asked questions
Is Statutory Maternity Pay taxed?
Yes. SMP is taxable earnings and has Income Tax + Class 1 NIC deducted through PAYE. It counts toward your Personal Allowance for the year. The employer reclaims 92% of SMP from HMRC (103% for small employers under the Employment Allowance threshold).
How long is UK statutory maternity leave and pay?
52 weeks of maternity leave (26 weeks Ordinary + 26 weeks Additional). Of that, up to 39 weeks of SMP: first 6 weeks at 90% of AWE, then 33 weeks at £194.32/week (2026-27) or 90% of AWE if lower. The final 13 weeks of leave are unpaid statutorily.
Who pays Statutory Paternity Pay and for how long?
Employers pay SPP for 2 weeks at £194.32/week (2026-27) or 90% of AWE if lower. From 6 April 2026, under the Employment Rights Act 2025, the right to paternity leave is a day-one employment right; the 26-week continuous service test now applies only to the pay, not the leave. Shared Parental Leave + ShPP can extend this from the mother's unused 37-week entitlement.
What is HICBC and will it affect me?
The High Income Child Benefit Charge claws back Child Benefit if either partner has adjusted net income over £60,000 (2024-25+ reformed thresholds). 1% is reclaimed for every £200 over £60k; fully reclaimed at £80k. You still get the NI credits that come with Child Benefit — don't opt out, instead tick the 'no payment' box if fully within the clawback range.
How do I get free childcare hours?
All working parents of children under 5 are entitled to government-funded hours: 15 hours/week from 9 months (expanded September 2024), rising to 30 hours/week from 9 months from September 2025 in eligible settings. Each parent must earn at least £167.84/week but less than £100,000 adjusted net income to qualify.
What is Tax-Free Childcare and can I stack it?
A government top-up of £2 for every £8 you pay into a childcare account, capped at £2,000/year per child (£4,000 for disabled children). You cannot combine it with Universal Credit childcare, employer childcare vouchers (legacy), or 15/30 free hours scheme — but you can use the free hours AND TFC for additional hours beyond the free entitlement.
Sources
Last updated April 2026. Reflects 2025-26 Child Benefit rates and 2026-27 statutory pay rates (£194.32/wk from 6 Apr 2026). Employment Rights Act 2025 day-one paternity leave applies from 6 April 2026. HICBC figures reflect post-2024-25 reform (£60k-£80k taper). Two-child limit abolished from 6 April 2026. This is general information — consult HMRC or a qualified adviser for personal circumstances.