Additional maternity leave
Statutory Maternity Leave consists of two periods of 26 weeks. The second of these is called Additional Maternity Leave. If taken this must flow directly on from the first period (Ordinary Maternity Leave). Your employment contract still stands although you may temporarily lose some employment rights depending on your employers policies.
Annuity
A financial term referring to an investment paid out to the holder in the form of a series of regular (often monthly) payments.
APR
The Annual Percentage Rate (which is the total amount, including all interest and any other charges) that you will typically have to pay on monies borrowed in a 12 month period.
Bonus bonds
A Government backed fixed term investment from National Saving & Investments that provides a tax free interest payment to the holder.
Child benefit
The state benefit paid weekly to all parents.
Childcare vouchers
Some employers offer schemes whereby parents receive free or buy vouchers through the payroll system that can be used to pay for a range of registered childcare.
Child tax credits
The Government benefits scheme that provides state payments to parents based on a combination of their family and financial circumstances.
Child trust funds
The tax efficient child’s savings accounts that are started with money provided by the Government for every baby born in the UK. The voucher they send to new parents is worth £250 (or more depending on circumstances).
Compulsory maternity leave
The minimum period that a mother has to take off from work after giving birth.
Critical illness cover
A form of insurance policy that protects against a breadwinner becoming unable to work. The payment is a tax free monthly sum equivalent to a percentage of their income.
Flexible working arrangements
The options, other than full time, that you can ask your employer to consider upon your return to work such as part-time working, job sharing, etc.
Guardians
Those persons appointed to by the courts to be legally responsible for the welfare and upbringing of children other than their biological parents.
Healthy start vouchers
A Government scheme that provides free vitamin supplements plus vouchers that can be spent on milk, fresh fruit, fresh vegetables and baby formula on a weekly basis.
Her Majesty’s Revenue & Customs (HMRC)
Aka the Tax Man. The Government department with responsibility for the collection of taxes and the payment of tax credits and child benefit.
Independent financial advisor (IFA)
Regulated by the FSA these advisors can select from the full range of financial products available to provide you with the advice that most suits your personal requirements and risk outlook.
Intestacy
The situation of a person dying having not made a valid Will. The distribution of assets is then overseen by a Probate court.
Job sharing
A situation whereby a single job role is split between two individuals to offer each greater flexibility or in some cases to ensure continued employment. The employee’s pay would then reflect their proportionate contribution to the role.
Life insurance
An insurance policy that will pay out to a beneficiary following the death of the policy holder. The payment can be an annuity or lump sum depending on the type of policy.
Low income
A family is classified as being on a low income when the household income before state benefits is £14,999 or less.
MATB1
This form acts as the medical evidence for an employee of their pregnancy and due date. It will be issued to them by their doctor or midwife.
Maternity allowance
The equivalent to statutory maternity leave for the self-employed or temporarily out of work.
National Insurance contributions
The levy on your wages/salary automatically made by the Government to fund the National Health Service.
Ordinary maternity leave
The first of two 26 week long periods of statutory laternity leave. During this time there are no changes to your employment rights.
P60
The form that provides a summary of your pay and the tax that has been deducted from it at the end of every tax year.
Parental leave
This offers parents the right to take unpaid time off work to look after your child or make arrangements for their welfare.
Paternity leave
The time off work that a father is legally entitled to following the birth of their child. The period can be one or two weeks depending on your circumstances and must be taken in one go.
Personal tax allowance
The amount of money that an individual can earn in a year before they have to start paying income tax.
Premium bonds
A Government backed investment from National Saving & Investments where, instead of interest payments the holders have the chance to win tax-free prizes of up to £1m.
Salary sacrifice
A system whereby your employer automatically deducts from your monthly salary in order to provide products such as childcare vouchers for you. There are some tax implications associated with this.
Small earnings exception certificate
This can be issued by he National Insurance Contributions Office to self-employed people with actual or anticipated profits below the level at which Class 2 National Insurance contributions would become payable.
Statutory maternity leave
Consists of two consecutive periods of 26 weeks called ordinary maternity leave and additional maternity leave.
Statutory maternity pay (SMP)
The minimum amount of money that you are legally entitled to be paid while on maternity leave. Some employers offer enhanced packages that increase your income above this basic level.
Sure start maternity grants
A one-off tax free payment of £500 made by the Government to new parents who are living on a low income.
Tax reference number
A unique number issued by the HMRC to identify individual taxpayers.
Working tax credits childcare element
An additional element of working tax credits payable to parents working over 30 hours per week.