Page 1 of Maternity Leave/Second Job/Tax Impact - Advice Please

The wife is about to write to her employer to tell them that she is going to take additional maternity leave (AML), which means she is now due to return to full-time work at the beginning of September. The truth of the matter is that we don`t have any intention of her returning to the job at all, as we have decided that it would be better for her to stay home with the little `un, rather than work purely to pay for the extortionate child care facilities that this country offers. Also, we thought it was better for her NOT to resign from her job, but to take the AML as a precaution and to keep our options open (e.g. if I was made redundant, God forbid, in the next six months and couldn`t get a new job that matched her current salary. Obviously, I could then stay at home while she went back to work).

With AML, she gets no statutory maternity pay from the government, and obviously nothing from her employer. To help us out on the money side of things, the wife wants to get a part-time job at M&S, Tesco, or such-like, at the weekends.

Now; questions, questions!

1. Are we doing the "right thing" by her taking AML and not resigning?

2. Are there usually any problems (contractual-wise) with women on AML getting part-time jobs during their AML? I appreciate that it may vary from company to company.

3. What are the tax implications with her getting a part-time job? Her current employer currently hold her P45, so will she be hit for "emergency" tax until such time as she officially resigns in September? Remember, she has NO income whatsoever while she is on AML.

4. How does the above affect our Child Tax Credit and Child Benefit?

Sorry for the long-winded posting, but I would really appreciate any help from anyone who found themselves in a similar position.

4. Your Child Benefit won`t be affected at all as it`s not means tested. Whereas, depending upon how much your wife earns from any part-time work, you may see a decrease in your Child Tax Credit. Probably best of heading to the Child Tax Credit Web site as, if I recall correctly, it has some sort of calculator.

My wife never returned to work & she told them at the end of her maternity leave, I think they kinda expect it, AML would seem to me to be unpaid leave with no restrictions on what you do during that time.

Apply for Working Tax Credit its for people who are employed or self-employed (either on their own or in a partnership), who usually work 16 hours or more a week, are paid for that work, and expect to work for at least 4 weeks, if both of you are working 16 hours or more a week, must choose which one of you will receive it. You cannot receive Working Tax Credit if you are not working. As part of the application you can also get help with the childcare costs while working.

More details here

Apply here

Hope it helps (it does for us).

"Great chunks of my past detaching themselves like melting icebergs"


Bigger on the inside

Think you should head down to the local CAB and get them to double check all this with you. You really don`t want to foul this up.

I`m not sure if your wife can take on a part-time job - they`ll be able to tell you. However if her current bosses find out about it, and she ever needs a reference from them I don`t think they`d be too happy.

Why not get her to speak to her employer? They are supposed to take reasonable demands for flexible working seriously.

How would they look at Saturday working? What about part time dial in if it`s a computer related job?

This space for sale





. <--- Except this bit, its mine.

Thanks for the responses. I`ll check out the local CAB. At the end of the day, if her firm don`t allow a second job, the wife can resign at any time during her AML.