It's Father's Day this weekend and only son is rehearsing somewhat reluctantly for a...read more
My employer is offering me 8 weeks maternity pay at 100% pay then going on to statutory for the rest of my leave. However instead of paying the enhanced part in weekly installments, they are offering to pay it in a lump sum before I leave as a bonus. That means I will pay 40% tax on the whole sum, whereas if it was paid as normal full pay on a weekly basis, I would pay 40% only on the amount above the higher tax threshold for March and the basic rate in April as the threshold is going up. Am I losing out with the bonus option, or will the tax work out about the same in the end?