In Kaplan text book, at one point it is stated that, 'The following income is exempt from income tax: state benefits paid in the event of accident, sickness, disability or infirmity'. Whereas, at another point it is stated that, 'The following state benefits are subject to income tax: Statutory sick pay (SSP)'
Is it contradicting itself or its me who is not understanding it correctly?
I just wanted to know if sick pay is an exempt income or taxable income?
Ask the Tutor ACCA TX-UK
Sick Pay - taxable or exempt
Statutory sick pay is paid by the employer through PAYE and is fully taxable whereas state benefits paid by the government are mostly exempt
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