This is the first time we have had to deal with SMP.
Any comments, ie
Can we claim it back?
Is it processed through payroll?
(we use Sage)
Is there a flat rate?
(I know I should look on IR, but Aweb is so much more helpful!!)
Tom
Tom Cadogan
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Replies (5)
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Go to this web link.....
http://www.tiger.gov.uk
I haven't had to deal with SMP for years and then 2 came along at once! Used this site and it was very useful and sorted out relevant dates etc. Very helpful if you don't have Sage or similar program.
Have fun!
Small Employers
You will find that a small employer for SMP purposes is that if your NIC liability in the tax year prior to 15th week before baby is due is under £45,000 you can claim the 104.5%
Statutory Maternity Pay
The IR's CD-ROM supplied to most employers is a useful resource, but it may take some trial and error in using it's search facility to find to nitty gritty detail that you will definitely need to study. Alternatively you can 'phone 0845 7 143 143 for IR helpline advice.
In brief my understanding is as follows :-
>>First 6 weeks maternity leave is at 90% of average pay (or £102.80 whichever is highest)
>>Next 20 weeks maternity pay is at £102.80 per week.
Reclaim the above 26 weeks SMP back, either you get:-
90% of it back if you are a large employer (ie. annual NIC bill £20k) or, if you are a small emplyer you get all SMP back plus 4.5% "NIC compensation".
So you "get back" the SMP - either 104.5% of gross SMP or 90% as mentioned above - by EITHER deducting off PAYE/NIC liability, or as in a recent case I had, of very low / nil PAYE/NIC liability so had to write to IR Collector of Taxes Cumbernauld asking for a cheque from IR - which was received after I'd supplied IR with more information.
There is so much detail in the SMP rules that you really do need to read the IR publications on this subject, available on the CD-ROM I've already referred to - it'll explain notice rules and the very necessary MATB1 certificate that employee must provide to the employer, also your pregnant employee's wages level has to be at least £79.00 per week to qualify for SMP.
PS. There's also PATERNITY PAY now for fathers - again look it up on the IR CD-ROM !
PPS. If you have SELF-EMPLOYED(sole trader / partners)clients who take maternity leave they can claim maternity money but in a different scheme, ie. not via PAYE as they are not employees, so claim from DSS / Benefit Agency.
Thanks for that useful comment, I now have some starting points for further investigation.
PS
Yes, record all the data through Sage, specifically using the SMP facility and all will be simple.