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Pregnancy

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Original poster

Need some support - Maternity Pay within a family business

17 replies

Trixie101 · 25/09/2018 11:23

Hi there,

So I am 'meant' to be taking my maternity allowance from the 26th October a month before I am due. I work for my parents which I have worked with them since 2015. I think its true to say that there is a fine line between family and work.

Now my mum, she deals with the payroll in our company (we are a small company, whereas I am one of three on the payroll) said to me this morning that if it was her in this situation that I shouldn't be claiming anything from their company as they work hard and I have had enough money from them in the past (my pay) . I said to her that technically they don't pay anything as they claim it back from the government and she basically said that they would still have to pay it in the first place and if that was the case then why should she pay me for not working when it was my choice to have a child and my choice to want to leave and have a child. I didn't find that very fair at all.

So now im left in a limbo situation, I feel a bit hurt, a bit guilty and just damn right emotional and not entirely sure what to do. So my question is, how do I go about applying for maternity allowance from the government and how likely would I be to get accepted on this too?

OP posts:

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HellaFresh · 25/09/2018 11:26

The company would have to prove to HRMC via a SMP1 form why they don’t have to pay you.

As they do, they would have to pay!

The SMP1 goes with your application for Maternity Allowance if you are in employment.

There is no box for ‘this is family who have decided to opt out’ to tick.

They have no choice.

Celebelly · 25/09/2018 11:43

She's being utterly unreasonable. She knows she can claim it back from government but still resents paying it so you can have time off to care for her grandchild and recuperate from giving birth? What?!

As PP said, if you apply for MA you (or your employer!) have to explain why you aren't eligible for SMP. If you've been working there as an employee then you won't be able to get MA and they have to pay you SMP. That's their responsibility as business owners.

Also you don't have much time if you want it to start in less than a month - you are supposed to apply for MA etc around your 25th week of pregnancy to make sure it starts on your time, so you're already a bit behind, so I wouldn't waste any more time. Awkward as it might be, you are entitled to SMP and they are legally bound to pay you it. If it's inconvenient for them, then tough. They won't be out of pocket and it's for their daughter and grandchild.

NanooCov · 25/09/2018 11:56

Adding to what people have said above, I'd start looking for a new job rather than go back to that. They begrudge paying you? Are they quite well as that sounds insane!

Original poster

Trixie101 · 25/09/2018 12:04

Thank you everyone, yes tell me about it, its not my dad he agrees with me, its my mum. I am going to look for a new job I was looking before I fell pregnant, said to them that I would carry on looking and they insisted that I didn't. I just don't understand why she digs at me, any differences myself and her have had in the past, this is about an employment and nothing else and being entitled to SMP is a right, I'm 31 weeks pregnant and my emotions are all over the place at the moment. Really makes me want to just walk away, but no one would benefit from that. I just didn't know it was such a thing to be made to feel guilty about bringing their first grandchild into the world especially as it was "my choice" so being left with no income to support my child is down to me apparently.

OP posts:

Foodylicious · 25/09/2018 12:09

WTF??

I would give acas a ring.

And check on getting a new job (and distancing yourself from your mum??)

Foodylicious · 25/09/2018 12:10

But possibly best to stay in current job and just not return at the end of your mat leave.

SummerRayne17 · 25/09/2018 12:13

Awww OP that is awful of your 'Mum'. Have you always had a difficult relationship with her? It sounds to me like she isn't looking forward to picking up the slack whilst you are on ML and is trying to make you feel quilty! Having a baby isn't a crime fgs and she should be happy and excited about the imminent arrival of her first Grandchild.
You are entitled to maternity leave/pay and she has no option but to pay it (the menial amount it is too!). Definitely suggest that you search for alternative employment though, you deserve better treatment.

Foodylicious · 25/09/2018 12:16

This may be helpful if you haven't seen it already

I think you will just have to treat all of this formally and in writing.

I know you said your mum does payroll, do you get wage slips? Are you sure they are paying you and yourtax contributions properly?

Just wondering if this could be a reason for the resistance

Foodylicious · 25/09/2018 12:16

www.babycentre.co.uk/a537568/your-maternity-rights

Original poster

Trixie101 · 25/09/2018 12:19

SummerRayne17 Yes it's always been an up and down relationship with my mum and that's exactly that, she doesn't actually have to be in here at the moment whilst im working in here but she knows that as soon as I go on mat leave she has to. I just guess I have to get my point across which makes it very difficult when she thinks that she is right with every point that she makes and can't actually admit when she's wrong. Highly frustrating!!!

OP posts:

dinosaurkisses · 25/09/2018 12:22

What you said about there being a fine line between family and work in your OP is very true.

I’d ignore her to be honest- she’s just moaning, although she is being thoroughly unreasonable! The fact your dad is on your side despite also running the business speaks volumes.

If she does the payroll she’s probably more pissed off about the inconvenience of sorting the paperwork for you and then for the refund from the government, but that’s part and parcel of running a small business!

I did get a chuckle from her saying that you’ve had enough money from them in the past from your pay. Well yes, otherwise it would be slavery!

Fate32 · 25/09/2018 12:36

They can apply for funding for SMP, HMRC will pay the full amount upfront (to 5 April) so they don't have to reclaim anything back, very easy to do and they money comes through within a couple of weeks.

Gazelda · 25/09/2018 12:47

I'd send her an email, cc'd to your DF.
"Dear Sylvia. I've been thinking about our conversation this morning.
I've looked into SMP and learned that, in our employee/employer situation, it is a statutory payment to which I am entitled and which my employer is obliged to pay. The cost can be reclaimed from the government, and I believe it is possible to do this before payment is made (I'm sure the company's accountant can advise in this respect).
Can you please clarify in writing the arrangements for my maternity pay and leave. I'd like to get all of this agreed before I start my leave.
Thank you"

I'd send a separate email, from your personal email address, again cc'd to DF
"dear Mum. Our conversation this morning upset me. I've always been a loyal employee to the business and not asked for anything I've not earned or been entitled to. I'm sad that you want to use our personal relationship as leverage to me not claiming SMP, which I will need to support my growing family. I'm sure your excited about the baby coming, can we leave the personal conversations outside of work, and keep work discussions professional and during working hours? I'd hate for your new grandchild's arrival to be marred by resentment about how it affects the business!"

Although, it doesn't sound as though she's the reasonable sort to see the error of her ways, but maybe DF will have a chat with her?

Original poster

Trixie101 · 25/09/2018 12:49

@fate32 thank you for that! I am going to suggest that to her then and at least that way she doesn't have to go through a reclaim process and she wouldn't feel as if she was paying out of their pocket. What happens after the 5th April? Would she have to do the same again if they wanted it upfront or would she have to reclaim in the next tax year?

OP posts:

Fate32 · 25/09/2018 12:51

Trixie, they will pay any SMP for the next tax year by 30 April, the link to make the claim is www.gov.uk/recover-statutory-payments/if-you-cant-afford-to-make-payments

Fate32 · 25/09/2018 12:53

Sorry should have said that you claim once and put in all of the details for both years, so only need to do once, but HMRC will split payments into the relevant tax years.

purplestar9 · 25/09/2018 13:39

@Trixie101 I'm sorry you're going through this. I actually work in payroll and can confirm, as previous posters have said, that they cannot refuse to pay you maternity pay. Whether you're family or not makes no difference what so ever. They will actually benefit from this because as a small business, they can claim back 103% of what they pay out to you, so they're gaining 3%.
My family also run a business that my sister works for (and is currently on maternity) so I know from both sides what the rules should be!
I can understand if you wouldn't want to get any other source involved with it being family but at the end of the day, you need maternity pay to live while you're having and looking after your child so it may be worth it!
I hope it all works out for you.

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