Now forgive the ignorance please. Despite being qualified and having a 22 year accountancy career, I've never had to deal with payroll, SMP, SSP and things like that. Until now. And I know very little about it, so I would appreciate your help on the following 2 matters.
1. One of my clients is a limited company, husband and wife team, each receiving a salary of only £6468 gross per annum (£539 per month) from which only a minor amount of NI is deducted. The wife took some time off work after having a baby, taking the maximum time off work as is covered by SMP. Her company continued paying her the monthly £539 less the NI deduction. SMP was then recovered by the company. For the purposes of the accounts (Financial Statements), am I right in assuming that this income should be treated as 'other' within the P&L, before being added back in the CT Computation?
2. Another client ran a limited company and, for many years, paid himself up to the NI threshold (£5715 in recent years), as was reflected in his company's P35 and his own P60. He then fell ill for several months, during which he claimed SSP. The SSP ended in December 2009, after having claimed it for the maximum period. On completing the P35 and P60 for the year ended 5 April 2010, his only entry was his salary for £5715. Now, in February 2011, his company has received a PAYE tax demand to repay all of the SSP. He thought that he qualified for SSP (irrespective of the company actually paying any NI), so does not understand why his company's now being asked to repay it. Is the demand payable, or did he make a mistake on the P35/P14 (missing out any reference to SSP) which could now be corrected?
Any comments would be much appreciated.