Chris Ash
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Refund of SMP

Refund of SMP

Hi

I have a client with a large SMP repayment claim sitting in their PAYE account.

HMRC just say reduce payments until recovered.

However because there are only directors at minimum salary on payroll there are never any payments to make.

Any ideas how to get this cash back (£6K)

Regards

Chris

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24th Feb 2016 10:19

I don't think you can

It was my understanding that you can no longer do this, that there are no more repayments issued for SMP. If that's the case, and I'm happy to be corrected on that, then I would increased the directors' salaries until the repayment is used up, you'll get the additional funds withdrawn from the company tax free and get a chunk of the repayment back as CT relief so it's not a total loss.

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24th Feb 2016 12:35

SMP ?

Duggimon wrote:

It was my understanding that you can no longer do this, that there are no more repayments issued for SMP. If that's the case, and I'm happy to be corrected on that, then I would increased the directors' salaries until the repayment is used up, you'll get the additional funds withdrawn from the company tax free and get a chunk of the repayment back as CT relief so it's not a total loss.

Are you thinking of SSP, Duggimon ?

SMP refunds are no problem.  Just ask.  Preferably before you start paying it out.

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24th Feb 2016 14:18

a hah

lionofludesch wrote:

 

Are you thinking of SSP, Duggimon ?

SMP refunds are no problem.  Just ask.  Preferably before you start paying it out.

 

I suspect I may be, yes! I my defence I don't do much payroll, still a terrible oversight though!

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24th Feb 2016 11:04

Apply for advance funding

Submit the structured e-mail to HMRC.

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24th Feb 2016 12:02

You can

But It'll take a lot. We recently got one back from the 2014 tax year - took about 12 letters and an absurd amount of calls to the Employer Helpline.

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24th Feb 2016 12:29

applied last week

I applied for smp funding last week and client received it within days.

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24th Feb 2016 12:50

Thanks

Hi

Thanks all, client has just told me they got a letter last week telling them they were getting the refund plus interest.

This wasn't for one in advance - it's 2 years old, maybe should have applied for advance funding in the first place though.

Regards

Chris

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24th Feb 2016 12:56

SMP

Just got a £5K refund for a client for 2014/2015. HMRC promised refund in August 2015, then November 2015 and eventually received last week. In the meantime I'd written to the local M.P. although the timing of the refund was coincidental.

Had a phone call from HMRC complaints department a few days ago and she suggested raising an invoice for work carried out since November - a £250 bill is awaiting preparation. During one of the phone calls the prat from HMRC asked me if the SMP had actually been paid to the employee! I felt like saying "No, we falsified around 9 months' worth of RTI returns to maximise the refund". T***s.

 

 

 

 

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24th Feb 2016 13:38

advance funding

Not sure why this is happening as have had a similar situation.

New client done her own payroll. Hairdressing salon. 3 employees including herself off on mat leave.

Payroll had calculated the SMP correctly but no EPS submitted over the 18 month period covering 2014/15 & 2015/16 and all PAYE/NIC liabilities paid as no P32 figures used and she use to just logged onto HMRC online services to see what she owed HMRC each month.

3 applications for advance funding submitted. 1 was fully in 2014/15 1 covered both 14/15 & 15/16 tax years and one was fully 2015/16

The 2014/15 was not paid at all. The balance 15/16 of the one that covered both tax years was paid and the 14/15 was not. The one fully in 15/16 ws paid in full ( all payments took less than 2 weeks to receive). She has had £9.5k paid to her

Advance funding can only be paid in the current tax year, not for previous years apparently. A request for the overpayment needs to be made. All this took 30 mins to sort out by calling the employers helpline.

Advice was to go and submit a EPS for 14/15 showing the SMP (Employment allowance was also not claimed) Her online HMRC account for 2014/15 shows a £9k overpayment and she has to call back to the employers helpline and request the overpayment to be repaid.

I should say this has happened over the last 2 weeks

 

 

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