I have a Ltd Co sole director/shareholder client who operates as a non IR35 Consultancy.
Income dried up part way through the 2019 calendar year and she became involved with an unconnected start up (no income taken) so had minimal involvement with the Ltd Co I act for. The standard low salary continued until February 2020 when cash ran out.
The client had a baby in March 20 and, shortly before the birth, we had some discussion around qualifying for SMP or if Maternity Allowance was appropriate and the client went off to make her own enquiries.
In the end, we were instructed to process a nil payroll from March 20 onwards and this has been confirmed each month prior to submission of the payroll.
The client has now come back and said that Maternity Allowance has been refused (several months ago but news to me!) and she has been told by the MA people that her company should make a retrospective advance funding claim to cover SMP.
Is this possible?
I assume that I would need to resubmit RTI returns from March 20 to include SMP omitted - can these be done retrospectively under these circumstances (i.e. company wrongly refused to pay SMP)?
The Ltd Co is now active and generating income again.
Any pointers would be much appreciated.
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Did the client work or only kit days? How can it be advance funding if the employer is claiming late?
Did the client work or only kit days? How can it be advance funding if the employer is claiming late?
It's just funding.
Client will have been refused MA on the grounds that she should've had SMP. What was the basis on which she was denied SMP back in March?
She either qualifies for SMP in the facts or she does not. It's not an option to go for MA instead.
Luckily, her directorship minimises any NI problem. Just work out what she should've had in the last 30 or so weeks and shove it through as October pay. Claiming funding is a sensible option, though not mandatory.
Work out the SMP amount due, apply for the advanced funding (that’s what it is as you are not offsetting against a payment of NICs etc), and when you get it, pay it over to them. Do it all at the point of paying it. Do not go and fiddle with the past, you didn’t pay it in the past.
Update: the client has actually gone as far as the 'dispute resolution process' between the company and herself with the result being the the company should have paid SMP.
Employers helpline was very helpful and require an updated submission for the 3 weeks falling into last year and this years claim can all go through as a single sum to date.
She raised a dispute with her own company ?