Reclaim SMP for director

Reclaim SMP for director

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Hi
Client had baby 5 months ago, carried on paying herself 2.5k gross salary per month....how to claim back SMP? Submit eps? Deduct off future paye payments?? New one for me, bit of advice please

Thanks

Replies (7)

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By mikeyban
18th Jan 2014 07:53

What software are you using?

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Replying to tom123:
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By cathhammond
18th Jan 2014 11:27

Sage payroll
Put figures in and churned out a big net pay ....not doubting it. But want to understand it....

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By cathhammond
18th Jan 2014 11:30

Sorry that wasn't very clear.... 5 months pay has already been run, so will have to do manual adjustment..

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Euan's picture
By Euan MacLennan
18th Jan 2014 17:58

Is she entitled to SMP?

On a salary of £30,000 a year, she would obviously meet the earnings threshold, but has she actually been on maternity leave and not worked for the company apart from on up to 10 KIT days?  Once she has worked on more than 10 days during the 9 months of leave, her SMP ceases.

I assume that on Sage you would need to enter the SMP as an addition to pay, with a corresponding deduction as a set off against the salary to keep the total at £2,500, in order for the software to be able to calculate the SMP recovery.  I am not sure what you have to do in Sage with regard to the arrears, but in Moneysoft, you would just file an EPS for the current month because the EPS contains both the current month and YTD figures for the SMP recovery.

If the PAYE due for the month is negative, you pay nothing and carry forward the balance to be recovered to the next month and so on to March.

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By cathhammond
19th Jan 2014 18:54

thanks Euan

it appears she only had 3 months off before going back part time in january 2 days a week does this make SMP cease??... if so think i will have to submit EPS for year to date figure and advise to reduce paye/ni payments accordingly....

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Euan's picture
By Euan MacLennan
19th Jan 2014 19:29

End of SMP

You could say that 5 weeks of 2 days a week were KIT days and continue to pay SMP, but SMP would definitely cease after the 5 weeks.

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By cathhammond
19th Jan 2014 19:37

Thanks again... Sole practitioner , so it nice to run things past someone

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