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Posted Mon, 21 Feb 2022 14:44:13 GMT by Some OfTheGear
We have a long term employee who is going on Maternity Leave on the 9th of April. We've taken the decision for our Company to cease trading on that day (she's a major income earner). No Company activity will take place after this date and our Accountants will then begin the process of Company closure. We're we to continue trading, we'd normally pay the Maternity pay through our Monthly Payroll and and recoup it +3% through an adjustment to our ongoing PAYE & NI Employer Contributions. However, apart from the normal winding up period, the Company will no longer be in existence, so there'll not be a Legal Entity to hold and make the payments from. How should this this handled? Further, though we have funds already allocated for her Redundancy, we've been told that this must be paid at the end of her Maternity period as she can't be Redundant and still Claim maternity pay. Is this right? The same question about company closure and payments also applies. We could pay her all of her redundancy payment AND her full entitlement of Maternity pay when she goes on Maternity leave on the 9th of April. However, unless this can be reclaimed straight away as an adjustment to our overall PAYE & NI liability, it'd potentially leave us insolvent if it wasn't possible to reclaim this. Would this be reclaimable straight away? How should we handle these issues please?
Posted Tue, 22 Feb 2022 10:29:02 GMT by HMRC Admin 2
Hi,

There is the option to pay the employee the lump sum of the SMP payment and you can claim advance funding in order to do this.

Get financial help with statutory pay

We can't comment on the redundancy legal issues. The ACAS helpline may be able to give advice.

If you require further advice on claiming the SMP funding or paying the lump SMP payment you can also contact our Employer Helpline.

Employers: general enquiries

Thank you.
Posted Wed, 23 Feb 2022 14:41:21 GMT by Some OfTheGear
Thanks for the reply. That's helped a lot.

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