Tax treatment of Statutory Neonatal Care Pay: Income Tax
This tax information and impact note is about confirming Statutory Neonatal Care pay as a taxable social security benefit.
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The government will legislate in Finance Bill 2024-2025 to clarify the Income Tax treatment of Statutory Neonatal Care Pay. This will ensure the payment is liable to Income Tax and ensures consistency with the tax treatment of other Statutory Maternity and Paternity Pay schemes.