OPEN - ESDS

MATERNITY PAY - Under the Employment Protection Act a woman having a baby
MOBILITY ALLOWANCE -
MORTGAGE TA5 -
ALLCW~CE
(M. I. R.A. S)
NATIONAL INSURANCE -
CONTRIBUTIONS
who normally works for her employer eight hours a week or
more, and has worked contLnuOusly fOr at leest the
previous two years, is entit.l~d~ tO this pay from her
employer, as long as she continues working up to the 1 Ith
week before the hby is due. Peyment ia An cash (paid
weekly) for the first six weeks after the woman stopped
work. Maternity pay is lese than norn!a 1 pay.
Mobility Allowance is a benefit to help certain disabled
people to maet their additional tranBport costs. It 1s
paid ~ payment tiok ● WV four weeks. Mobility Allowance
should not be confused with ~TORBILITY which is an
independent mluntarj organisation for the purchaee or
hiring of Whicles at preferential rates.
A mortgage is a loan for the purchase of property. The
loan can be taken out from vsrioum organisations eg
building society, local authority, bank. The size of the
loan is usually worked out on multipIes of yaarly selary
( often 2-2 1/2 timen depending on the lander”s policy) .
The borrower, in most cases, will have to protide a
daposit for the property ( say 10%). Mortgage arrangements
wry in the amount of interest payable and the tax relief
that can be claimed. Heat mortgages are ona of two types,
either interest and principal or interest only where there
ia an endowment policy cow?ring the principal. (See
Optxon mortgage, ‘Top Up’ mOXtgage).
In April 19S 3 a new scheme was introduced whereby tax
reliaf . on interest can be giw$n by the organisatzon
granting the mortgage rather than Inland Re u!nue via PAYE
tax coding, etc. The scheme ia not uninrsal and not al 1
institutions have adopted it. Under tha new scheme the
amount of intereat paLd to the building society, etc, ia
reduced by the amount of tax relief due.
A NI contribution is a regular contribution by indi vlduals
to ● nable them to obtain ~rioua national insurance
banef its. All employed and aelf employed persons (earning
more than a apecif ied minimum amount) are required to pay
a NI contribut~on. sane non-employed persons may alao do
ao. There are different clasaea of contribution depending
upon employment status.
Employees pay claaa 1 contributions which are deducted
f rorn their wage or salary. There are three lewls;
contracted into the atate pension scheme, contracted out
of the rotate pension achame (if the employ-e is in a
pri ~ta pension ● chemo) and a raduced rate paid bq married
woman who were paying into the scheme bafora April 1978.
(The reduced rate entitles them to fewer banef its).
Self employed pay claaa 2 contributions on a regular basis
and claaa 4 on an annual baaia depand~ng upon prof lta.
Non-employed pmraona may almo pay ~luntary contributions
under clasa 3.
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