Statutory Maternity Pay

[slackbloke]

Does anyone know how SMP works for a limited company.
My understanding is that the company must pay an employee that meets all the critieria, but I am not clear how or if the company came claim this money back? Can you claim it against contributions already made for NI and tax? Can you claim it back at all!?

[WindyAnna]

You should be able to claim some or all of it back. I employ a nanny who will be going on maternity leave (personally, not thru' a ltd co) and I've been told by my payroll company that I can claim all of it back. When I was on maternity leave I was through an umbrella and they claimed most of it back.

This document has some info:

http://www.dti.gov.uk/files/file34286.pdf

Cheers

[WindyAnna]

Forgot to say - I also get 4% compensation from the government as a small employer - not sure how that is defined!

Cheers

Windy

[PAG]

You should be able to claim some or all of it back. I employ a nanny who will be going on maternity leave (personally, not thru' a ltd co) and I've been told by my payroll company that I can claim all of it back. When I was on maternity leave I was through an umbrella and they claimed most of it back.

This document has some info:

http://www.dti.gov.uk/files/file34286.pdf

Cheers

Do you have a nanny on company pay roll ??? If so, how do you justify that ?

[WindyAnna]

I have a nanny who I employ personally, as an individual, not through my limited co payroll. I could have put her on the payroll but it would have been a nightmare and I didn't want her to get involved in any crap.

Cheers

Windy

[slackbloke]

Thanks for the info. Where does the 4% compensation come from?

[WindyAnna]

From the government but not sure in what form I get it. Here is what my payroll company told me:

"If either of your employees becomes pregnant, they will present you with form MATB1. As a small employer, all Statutory Maternity pay is recoverable, plus 4% compensation."

I employ 2 part-time nannies

Hope this helps

Windy

[slackbloke]

Yes that is good thanks, and certainly more helpful than my accountant!

[THEPUMA]

Incidentally, although you get 104.5% of salary back, you are still usually slightly out of pocket as the company has to pay employer's NIC on top of the 100% so at the margin you are losing 8.3% (112.8% - 104.5%).

Bit still pretty generous all in all.