Should a sole director/shareholder claim SMP?

Should a sole director/shareholder claim SMP?

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Person in question pays herself to the tax threshold only. On the face of it it seems worthwhile to claim. Is the problem some way down the line trying to convince the tax inspector that she did not work while she was officially on leave?
Thanks in advance for any contributions.

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By frauke
13th Sep 2007 12:38

You need to check the latest regulations
I suggest you check the latest regulations. A person can now do a little work - but there are restrictions.

I have never had any problems with this - as I don't know many Women who have the time to work when the baby first arrives (Breast feeding every 2 hours, 24 hrs a day and a constantly screaming - tend to take it out of you, so working is not really an option! )

- even if they want to - unless they get lots of help!

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By User deleted
14th Sep 2007 06:53

I have claimed for clients
On several occasions over the last few years, I have made an SMP claim for clients in similar circumstances. I always stress the fact that they must not work during the period (although with the new "keep in touch" days, they can do a little bit now). None of the claims have been queried.
On a salary equal to the basic rate band, they do get a reduced SMP, but it can add up to a couple of thousand of pounds, so is well worth while.

As the previous poster noted, anyone who has lived in a house with a very small child will know that for the first few weeks at least, it would be very difficult to work.

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