If you missed reading through the Finance Bill you may not know maternity benefit will now be taxed !
This social welfare payment is a valubale source of income to many, whom would be on a reduced income during maternity leave. Taxes for PAYE will be collected through reduction of tax credits etc.
The self employed will have this benefit taxed on submission of their annual return (form 11)
For more information on this matter or any other income tax issue contact tax advisor firstname.lastname@example.org.
Reveune have published the following :
Employers, agents and payroll practitioners should note that Maternity Benefit, Adoptive Benefit and Health & Safety Benefit, payable by the Department of Social Protection (DSP) from 1 July 2013 will be taxable in full. However, USC and PRSI will not apply to these benefits.
As part of the ongoing exchange of information arrangements between Revenue and DSP, Revenue will receive the payment details which will be updated onto our records.
By way of administering the taxation of these benefits, Individuals who pay their tax through the PAYE system will, where possible, have their annual tax credits and cut-off point reduced by the amount of these payments.
Employers/pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).
Further information can be found in Revenue’s Employer’s Guide to PAYE