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SMP on cessation of business

Pumpkin One
Posted Tue, 17 Jan 2023 12:12:07 GMT by Pumpkin One
Client has one employee who is currently on maternity leave and SMP has been funded by HMRC to May 2023. In February the business will be sold and a new owner will take over the employee. I assume that the PAYE scheme will be closed down and a new one opened, how do they deal with the SMP side of things?
HMRC Admin 20
Posted Fri, 20 Jan 2023 13:06:15 GMT by HMRC Admin 20
Hi Pumpkin One,

If the employee is transferring under TUPE regulations and the PAYE scheme is closing and they have not paid out the full amount of SMP, they will need to repay the balance of Advanced Funding.
The new company should then repay the remaining SMP and they can claim this back.
If it is not under TUPE, please call the Employer Helpline 0300 200 3200  to discuss further. 

Thank you.

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