TCTM04113 - Income: Employment income rules: The amount (if any) by which a payment of Statutory Maternity Pay (SMP), Ordinary Statutory Paternity Pay (OSPP), Additional Statutory Paternity Pay (ASPP) or Statutory Adoption Pay (SAP) exceeds £100 per week

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(h)

This is effectively a disregard of up to £100 for each week of SMP, OSPP, ASPP or SAP received in the tax year. Note that where the rate of SMP, OSPP, ASPP or SAP received is less than £100 per week, only an amount equivalent to that received in each week of SMP, OSPP, ASPP or SAP in the tax year can be disregarded from the total pay and SMP, OSPP, APL or SAP income for the year. For example, if £80 SMP, OSPP, ASPP or SAP is received in any week, only £80 can be disregarded.

This is different from the income tax treatment. All SMP, OSPP, ASPP and SAP is included as income for income tax purposes.