Autumn Budget 2024: Employers will have to change the notice they must give to an employee regarding possible deductions from their salary in relation to a share incentive plan (Sip).
A minor change to the Income Tax (Earnings and Pensions) Act 2003 and the Employee Share Ownership Plans (Partnership Shares — Notice of Effects on Benefits, Statutory Sick Pay and Statutory Maternity Pay) Regulations 2000 will mean that the notice an employer must give an employee regarding a Sip needs to refer to statutory neonatal care pay, as well as social security benefits and other statutory payments. This will be legislated for in the Finance Bill 2024-25.
This is due to the introduction of statutory neonatal care pay, as part of the Neonatal Care (Leave and Pay) Act 2023, from 6 April 2025.
In addition, the government will clarify the income tax treatment of statutory neonatal care pay in the Finance Bill 2024-25. This is to ensure the payment is liable to income tax and is consistent with the tax treatment of other statutory maternity and paternity pay schemes.
