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You are entitled to paternity leave, ask your accountant.
Contractors certainly can claim Statutory Paternity Pay:
SPP is paid to partners who take time off to care for the baby or support the mother in the first few weeks after the birth.
It is available to:
• a biological father
• a partner/husband or civil partner who is not the baby’s biological father
• a mother’s female partner in a same sex couple;
The partner must have
• given 28 days notice of his paternity leave (unless with good reason)
• provided a declaration of family commitment on form SC3
• been employed continuously for 26 weeks up to and including his qualifying week
• had average weekly earnings above the Lower Earnings Limit in the relevant period.
The Amount Payable
SPP is payable for a maximum of 2 weeks and must be taken in one block i.e. as 1 week or 2 but not 2 single weeks with a working week in between. It is payable at the following rate in 2012/13:
• the lower of:
- 90% of Average Weekly Earnings
- £135.45 per week
SPP is treated as normal pay and taxed accordingly.
So contractors taking a salary of £7488 will be able to claim the £135.45 from HMRC, via their company. Just ask your accountant, whilst it is not a fortune, it all helps.
So Im guessing contractor would continue with same salary to himself but company gets to keep the £135? (Same as a lot of employees who may get full pay from their employer instead but employer keeps SPP).
Got me thinking. Does the same apply for Statutory Sick pay? I know this doesn't kick in for 4 days though (and its only £86).
If you are genuinely sick and can't work, might be easier to claim this through your limited rather than the rigmarole of JSA. Of course, pretty sure you'd need a doctors note.
Not suggesting everyone whos contract ends gets down the docs asap of course!
Contractors certainly can claim Statutory Paternity Pay:
SPP is paid to partners who take time off to care for the baby or support the mother in the first few weeks after the birth.
It is available to:
• a biological father
• a partner/husband or civil partner who is not the baby’s biological father
• a mother’s female partner in a same sex couple;
The partner must have
• given 28 days notice of his paternity leave (unless with good reason)
• provided a declaration of family commitment on form SC3
• been employed continuously for 26 weeks up to and including his qualifying week
• had average weekly earnings above the Lower Earnings Limit in the relevant period.
The Amount Payable
SPP is payable for a maximum of 2 weeks and must be taken in one block i.e. as 1 week or 2 but not 2 single weeks with a working week in between. It is payable at the following rate in 2012/13:
• the lower of:
- 90% of Average Weekly Earnings
- £135.45 per week
SPP is treated as normal pay and taxed accordingly.
So contractors taking a salary of £7488 will be able to claim the £135.45 from HMRC, via their company. Just ask your accountant, whilst it is not a fortune, it all helps.
Alan
And, of course, its not worth the risk for £270 of claiming this and continue to rock up at clients site. ;-)
I guess it is a grey area for company directors though.
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