This is the first time that I have had to account for SMP for one of my payroll clients. I have looked at the Paye Regulations in some detail and have, among other things, come up with the following:
- she is entitled to SMP even though she is a director of the company
- she can be paid SMP as well as the salary that she would normally receive
- the SMP forms part of her taxable pay and is recoverable
- she cannot receive SMP if she returns to work (other than "Keeping In Touch" days)
Am I correct in my assumptions?
Many thanks for your help.
Replies (2)
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So do I
Me too. Though you might have a problem with the second one - it's possible that HMRC might say that the salary is not a valid expense of the trade. To be fair, I'd rate the probability of that as low.
Is the nature of the business such that she can just down tools for nine months ?