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Dear All

Happy New Year - think it's my first post of teh  year - now what have I been up too.... ah yes pulling my hair out at clients who say - "yep will get onto my tax info week after next if that's OK....?"

Anyway - really easy question for those who know the answer.

I have recently taken on a small company client where the directors are Husband and Wife, each have been working in the business for 5 years or so and take small salary big dividend. I am in the process of doing their 2012 tax returns.

In Feb-12 Wife had a baby but previous advisor didn't claim any SMP on the grounds that "the company has not paid any NI in the past therefore you can't claim SMP" (that's what previous advisors email to my client stated back in December 2011 when they asked him about it)

I must confess I have never had one of my sole or husband and wife director companies have a baby (well the wife that is not the company!) and so hadn't thought about it.

I have looked at  the guidance and read threads on here and it seems that he may have been wrong however some HMRC guidance seems to back up what he has said

If they could have claimed can they claim now? For this and last tax year? (Wife has been receiving £624/month every month this year but I guess that could be reclassified as SMP plus a top up? - If they can claim it is quite a big number and potentially they have missed out.

Any help from those better versed in SMP that I would be very very welcome!

Not  a January SA deadline question I know so apologies for diverting away from the main theme of the month!



There are 5 comments. Login or register to view them.

I always assumed yes

imbs |

HMRC website can be useful!

petersaxton |
petersaxton's picture

Thanks for the replies

Ding Dong |
Ding Dong's picture

But of course they have 'paid' NI even if it was at 0%

Luke |
Luke's picture

Reclaiming it

Luke |
Luke's picture