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A query was raised regarding whether a mother can apply the increased maternity tax deduction when nursery costs are paid via nursery vouchers (benefits in kind) through the father's employer. The Directorate General for Taxes (DGT) ruled that this is not possible if the expense constitutes an exempt benefit in kind. Furthermore, if the payment is split, only the portion paid directly by the mother may be deducted.
This ruling limits the ability to claim additional maternity tax benefits when childcare costs are covered through tax-exempt employer benefits, ensuring that only direct out-of-pocket expenses by the mother qualify.
The tax team reviews your specific situation.
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