Dentists and Maternity Pay

Dentists and Maternity Pay

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Hi all,

I have a client who is a limited company and the director and the only dentist in the practice is pregnant.

I have been reading up about the crazy maternity benefits which dentists can get (as long as they meet the criteria)

We do the payroll for this client's limited company - it is very straight forward.  Director on min salary and three other staff.

But when the director goes on maternity leave, and the NHS Dentist maternity pay kicks in, how do I record it?

The payroll software that we use only accounts for standard SMP

Standard SMP isn't taxable - but does that mean all of the NHS maternity pay is classed as the same?

I don't have the exact figure of maternity pay yet, but I understand it is much better than SMP.

I assume she doesn't qualify for standard SMP too?

​Any help would be much appreciated as I feel like I am going round in circles.

I use Payroll Manager to process the payroll.

Thanks

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By hpflair
15th Apr 2015 15:08

My view is that the NHS maternity pay does not need to go through the payroll. It will be included with the other NHS income on the monthly schedules and hence will be taxed as income of the company.

You state that standard (Statutory) SMP is not taxable, but that is incorrect - it does form part of taxable pay.

The dentist is entitled to SMP provided she meets the qualifying criteria. This is separate, and in addition to, the NHS maternity pay.

 

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