How does Mat Pay work if you are a registered limited company?

[Fangache]

I'm not pregnant BTW! But just mulling over the "what ifs".

I am a Contractor and I'm registered as a limited company. I know that I can get SMP through my agency as a straight-forward contractor..... but what about the fact I'm a limited company????

Anyone know?

[Wordsmith]

A friend of mine is a limited company. I think basically her company paid her statutory maternity pay - so in effect she was paying herself and then had to claim it back the same way any other company would. Doubt if the agency would be involved, but I don't know for sure. I am a sole trader and just claimed it from the government as maternity allowance. It's the same amount now but when I had DS1 (5 yrs ago) SMP was about £10/week more than MA!

[Bewitched]

You're alive?!?!?!

I'm with wordsmith on this one. I too am a sole trader, but pretty sure that as a limited co you would pay yourself and claim back from govmnt, just like if you worked for another bigger limited co.

[motherinferior]

I'm one, and I can't remember how my lovely and wonderful accountant managed it for me but I know it didn't amount to much.

[Fangache]

lol Bewitched.... No its still Fangaches DH.... I'm just enjoying MN.

Thanks everyone.

[smw9927]

Dh & I are a Ltd company (he's an IT contractor and I do admin and some HR consultancy) and I've just sorted out SMP for me. Provided earnings are above the Lower Earnings Limit for the crucial 8 week/2 month period SMP is calculated over SMP is payable.

You get to claim what you have paid out back from Inland Revenue and there are 2 ways of doing this. The most common is to calculate what you are due and then "reclaim" it by the company reducing it's Income Tax and NI contributions until you are squared up. Alternatively, if that is going to take you a long time - which a small business will - you can calculate the amount due and ask Inland Revenue for an advance. They then send you a cheque and you continue to process your tax and NI payments as normal. I just did this for a client and it worked out smoothly.

For a small business, you get to reclaim 104.5% of the SMP payable. 100% to cover what you pay to the employee and an additional 4.5% "compensation" in respect of the admin and employer NI contributions payable on SMP. SMP is s state benefit that the government makes empoyers pay for them! (Larger employers only get to reclain 92%).

Hope this helps