Cookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.
Claim Back Wages from the Taxman
Newsletter issue - April 08.
When your employees become parents they may take some maternity, paternity or adoption leave. If they earn more than the NI threshold (£87 per week for 2007/08) and have worked for you for at least 6 months, you will also be required to pay them at the statutory rate during most of that leave period. These statutory wages (SMP, SPP or SAP) must be paid at a flat weekly rate of £112.75 for 2007/08, although SMP is paid at 90% of a woman's average wage for the first six weeks of the leave period.
All this statutory pay for absent employees can leave you out of pocket, so the good news is you can claim it back from the Taxman. First you need to check whether the Taxman classes you as a 'small' employer or not. Small employers get 100% of the statutory (baby-related) pay back, plus a 4.5% bonus, other employees can only claim back 92% of the statutory pay.
The test of being 'small' depends on how much NIC you were due to pay for the previous tax year. If this was £45,000 or less you qualify as a 'small' employer. Dig out a copy of the form P35 you submitted last year for 2006/07 and check the figures of NI reported on that form, to see if you are under or over the £45,000 threshold. Look at the total NI collected before deducting any amounts used to fund any statutory payments.
You should technically reclaim the statutory pay as you pay it out each month during the tax year. The Taxman wants you to hold back the statutory pay plus the 4.5% compensation, from the other payroll deductions you make each pay period. If you forgot to do that, all is not lost as you can complete a form SP32 to reclaim all the statutory pay paid out over the last few tax years. We can help you with that.
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
Please complete our form
to request a callback
Competitive fixed quotes
for agreed services
Increase your profit and
reduce tax liabilities
Expert advice for your
business size
