SMP payments and redundancy

Discussion in 'Accounts & Finance' started by Anna Chandley, Nov 2, 2010.

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  1. Anna Chandley

    Anna Chandley UKBF Ace Free Member

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    I have a payroll question that I hope someone could help me with.

    A pregnant employee is being made redundant. They are due to be paid maternity pay as their qualifying week for SMP is before the last date of employment. Their maternity leave would have commenced after the last day of employment.

    Would the SMP due normally be paid as a lump sum on the last day of employment or should it be paid as it falls due.

    All staff are being made redundant at the same date and the company will cease trading so it would be prefereable not to keep a payroll open for the purpose of one person's SMP payments.

    Thanks

    Anna
     
    Posted: Nov 2, 2010 By: Anna Chandley Member since: Jun 2, 2008
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  2. Tom McClelland

    Tom McClelland UKBF Ace Full Member

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    HMRC has no objection to SMP being paid as a lump sum, as far as I know. I'm fairly sure that I've seen that in the regs.
     
    Posted: Nov 2, 2010 By: Tom McClelland Member since: Feb 10, 2008
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  3. Anna Chandley

    Anna Chandley UKBF Ace Free Member

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    Thanks Tom. I thought that would be the case

    Anna
     
    Posted: Nov 3, 2010 By: Anna Chandley Member since: Jun 2, 2008
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