Paternity Pay: changes & implications for employers

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Mike Bull
Payroll support Manager
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With changes to Statutory Paternity Pay due to take effect in April 2011, Mike Bull, customer support manager at Sage UK investigates the impact this will have both for British businesses and individual taxpayers.

Nick Clegg’s plans to make parental leave more flexible by allowing mothers and fathers to share time off after a baby’s birth has been heralded by government as “rescuing the UK from an Edwardian system” of parental leave.

Extending rights for new parents by allowing fathers to extend their leave by a further six months off work to look after their children under the Additional Paternity Leave Regulation 2011, have been warmly welcomed by families and working fathers. But what are the implications for employers?

With experts warning...

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11th Mar 2011 14:33

Just a couple of points of clarification....


HMRC have said that employers should accept the self-certificate in good faith and are not required to follow up with the mother’s employer. They can do this if they choose to, but ASPP will not be repayable by the employer to HMRC if a claim turns out to be fraudulent as long as the requisite  self-certificate was correctly completed and retained.Secondly the reclaim for small employers is dropping to 103% from 104.5% from April 2011 as the NICs thresholds are rising to £136 p.w. for employers and £139 p.w. for employees.

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