Annual payroll schemes / SMP / SPP / RTI

Annual payroll schemes / SMP / SPP / RTI

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I am setting up a couple of payroll schemes for sole owner/director ltd co's. They may have more kids in the next couple of years so would like to be able to pay SMP / SPP if they do have a child, so I'm trying to figure out the best way of doing this.

For admin ease I'm considering setting up as annual schemes - if I find out a baby is on the way I would then start to process monthly payroll runs, which will lose the annual status but would be OK for SMP / SPP purposes.

Would this work?

Is there any way to use an annual scheme without losing SMP/SPP?

Thanks in advance!

Replies (2)

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By dnicholson
31st Mar 2014 14:23

Maybe
Well as soon as you make a second payment in the year the annual scheme will be cancelled.

As for SMP/SSP, the amount is based on the earnings in an eight week or two month period, with another set of rules for irregular pay. It isn't clear to me how you'd use those rules to work out the relevant average pay for an annual payroll, but maybe others can see differently.

Things may be clearer if you stick to monthly.

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RLI
By lionofludesch
31st Mar 2014 14:36

Too complicated

I'd go for weekly or monthly pay.  If not, I think you'll find anomalies.

An annual scheme is intended to save you admin time not create headaches for you.

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