Is maternity pay tax-free?

Scooby_Man

My wife is expecting to go on 6-months full pay maternity leave - is this reduced tax or tax free?

Bordera

It is usually taxable, this might help http://www.dti.gov.uk/er/workingparents.htm

Debt_Free_Chick

Taxed, in the same way as pay. Maternity Pay is just salary, paid during a period of leave, although it may be at a different rate to full pay.

She will also pay pension contributions, if these apply and if her employer normally deducts it. She will also be entitled to all her contractual benefits.

So ... it's just as if she were going to work every day though, naturally, she doesn't have to go in or actually do any work

HTH

pud1

as far as i know you pay tax when on the inital 6 weeks @ 90% of salary but dont when she's goes on maternity pay @ £102 per week.although i wouldn't change having a baby for the world especially as it's our first and at the third time of trying through IVF i feel that fathers are not given enough financial incentive to take up the paternity leave they are now entitled to.i did and as i'm paid monthly found myself around £500 out of pocket as paternity leave is only paid @ £102 per week.why cant fathers be paid 90% of there weekly/monthly wage just like the mothers do.

Gambler

Just been reading my partner's policy document about maternity pay:

it says 6 weeks at 90% (made up to 100%) with SMP

weeks 7 to 18 - half pay with "no deductions"

Any idea what no deductions means please - is it tax/NI free??

SAHARA

I haven't been taxed on mine, and the first £100 pw is diregarded for tax credits as well.