Hi - my client employs a lady who is going on maternity leave. I have seen that 100% of the SMP can be claimed back plus NIC compensation. However, as my clients wage bill is small they don't pay any employer NIC currently due to the employment allowance. Do I still claim for the compensation or not?
Write the hmrc at the end of the tax year withthe claim - info with address is on HMRC if you do a search for the subject. They can get help earlier if they cant afford to pay the SMP but wouldve need to contact HMRC already if I recall correctly.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi - they do pay tax and employee NIC but not employer NIC - my question is about claiming back something that we didn't pay. For example, if we pay the lady £350 SMP (90% of AWE) in the first week but the employer NIC is wiped out with the employment allowance, do I claim back £350 plus the NIC compensation of £10.50 (even though this was negated by the employment allowance) or just the £350?
That was the one I was referring too, although thats the second half.
What software are you using Kitty?
The NIC Employment Allowance should be deduced before other payroll deductions which gives the benefit of the Employment Allowance to be gained as quickly as possible, whilst still enabling employers to apply to HMRC for funding for the statutory payments.
Hi - I'm using Basic Tools but my question is simply - should I claim the 3% NIC compensation which I assume is to contribute towards the employers NIC liaibility when we don't have an employer NIC liability as our employers NIC is under £3000 and therefore is totally covered by the Employment Allowance.
If the rules are that everyone paying SMP can claim 103% (as long as they are under the £45k NIC threshold) then I will claim the full amount - it seems a bit wrong however to claim more than we have paid? I could understand if we'd used up all our allowance and therefore paying this lady meant that we were incurring both her basic pay and employers NIC - then it would be understandable.
Oh yes - sorry - I am down as the agent for payroll yes. And it's the 3% NIC compensation yes, but as I said, currently our employer NIC cost is nil. Not sure if that is relevant or not though.
The compensation/relief is there if the business is small enough (not that its much compo for a staff member who is off work and not being productive) and reckon you wont have a problem but to be sure I would call the agent hotline and confirm the company's small employers' relief status. I suggest the agent line as (generally) they answer their phones quicker than the usual paye mob.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
