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Maternity pay and additional benefits
jennieshrew
Posts: 348 Forumite
My employer will pay me maternity pay whilst I am on maternity leave.
When I am not on maternity leave and working as normal I have a range of additional benefits which I can choose from such as medical insurance and a company car which would normally reduce my salary.
During maternity leave I will continue to be paid about £40 a month towards the cost of these benefits. I have read that such benefits cannot reduce maternity pay. I have confirmed this over the phone with my payroll department. I can make changes to the benefits I receive once my child is born and change them back again once I return to work.
As such in theory I can request additional benefits for the duration of my maternity leave which will effectively be free??!! Eg I could request a nice company car on a one year car lease (all maintenance, tax, insurance is paid by company), buy additional holiday days to be taken at the end of my maternity leave, buy childcare vouchers whilst on maternity leave?
Apart from this feeling very unethical can anyone see any flaws, issues I havent thought of, have I understood it correctly? I dont want to take out a £600 a month car loan just to find out I have made a mistake.
I feel as though it is taking advantange. Help! What would you do?
ps I only get paid for 8 weeks of my maternity leave and after that I am on SMP for the remainder of 9 months, plus nothing for the final 3 months.
When I am not on maternity leave and working as normal I have a range of additional benefits which I can choose from such as medical insurance and a company car which would normally reduce my salary.
During maternity leave I will continue to be paid about £40 a month towards the cost of these benefits. I have read that such benefits cannot reduce maternity pay. I have confirmed this over the phone with my payroll department. I can make changes to the benefits I receive once my child is born and change them back again once I return to work.
As such in theory I can request additional benefits for the duration of my maternity leave which will effectively be free??!! Eg I could request a nice company car on a one year car lease (all maintenance, tax, insurance is paid by company), buy additional holiday days to be taken at the end of my maternity leave, buy childcare vouchers whilst on maternity leave?
Apart from this feeling very unethical can anyone see any flaws, issues I havent thought of, have I understood it correctly? I dont want to take out a £600 a month car loan just to find out I have made a mistake.
I feel as though it is taking advantange. Help! What would you do?
ps I only get paid for 8 weeks of my maternity leave and after that I am on SMP for the remainder of 9 months, plus nothing for the final 3 months.
:A
0
Comments
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In addition, what would happen to my tax if I take out a car for a year but am not paying tax due to low income, would this screw my tax code the following year?:A0
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help! I don't know what to do!:A0
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