Has anyone paid a Nanny SMP?

[car1sberg]

Hello,

I am a Nanny, and will be soon telling my employer. I am their first Nanny and I know they won't be sure about SMP and will probably panic at the thought of paying this out whilst also paying for replacement childcare at the same time.

I understand they will receive 104.5% of the SMP, but my question is when do they get this back? Do they pay the SMP out each week/month to me first then receive it back at the end? I really don't think they could afford that. Or can they claim it back as and when they pay me, so that they aren't out of pocket at all?

I should add, I don't work many hours so am only paid £140 per week, therefore don't pay any tax or NI, but am still entitled to SMP.

Any help would be much appreciated. I want to be able to soften the blow slightly when I let them know!

Thank you..

Does this help?

I have.

As employers, you are paid the SMP at the start of the maternity period. We then paid our nanny the monthly amount she was due in accordance with what our payroll company told us to pay.

Our nanny took a year's maternity leave, and didn't come back to work. So she was due a year's paid holiday. That part of her salary wasn't covered by SMP and we paid her for that at the end of her maternity period.

Thank you Spindelina, it does slightly.. :)

Hia, thanks for the reply.. So you mean you were paid a lump sum at the beginning and then just paid the £135 (can't remember the exact amount) to your Nanny each week/month? I had heard of the parent/employer paying out the SMP each month then getting it back a couple of days later, each time.. So being out of pocket for a couple of days each month, but this wasn't the most reliable source.

Thanks for your help!

Also Hia, had you applied for 'advance funding' in order to do it that way, or is that just the norm?

Thanks!

I don't know sorry, I assume that this is the norm. We weren't at all out of pocket. In fact, we pocketed the interest that the SMP accrued before we paid it all out! It was hardly much though. It was all very easy. Nanny gave us her MATB1 at 26 weeks or so, and we sent that to HMRC.

My boss got a lump sum at the start and carried on paying me weekly.

That's helpful to know, thank you!