Quote:
Originally Posted by dejongj Ah that lovely urban myth...Just claim it back...You still need to make enough money in the first place to 'claim' something back....Funny how employees don't remember the 'extra' holiday as actually a pay increase! Less working time but the same money...Well someone has to pay for it....And ultimately it is the employees themselves as they are also consumers....and that is why the spiral gets out of control... |
From HMRC website
HM Revenue & Customs:
Recovering SMP
How much do I get back?
The amount you get back normally depends on your total gross, employer's plus employee's, Class 1 NICs in the appropriate tax year. You can use your form P35 Employer Annual Return, as a quick check of this.
If your annual liability for Class 1 NIC’s is £45,000 or less you are entitled to:
* 100% of the Statutory Maternity Pay (SMP), and
* an additional amount as compensation for the NICs you pay on the SMP. The compensation rate for 2009–10 is 4.5%.
Add together all payments of SMP made in the same tax months for which you are entitled to recover and calculate 100% plus 4.5% of that total figure.
The qualifying tax year for SMP purposes is the last complete tax year before the employee's 15th week before the week baby due.
If your annual liability for Class 1 NIC’s is more than £45,000 you are entitled to 92% of the SMP.
Add together all payments of SMP made in the same tax months for which you are entitled to recover and calculate 92% of that total figure.
If you only had part-year or no annual liability for Class 1 NICs for the previous tax year and this could be either more or less than £45,000. You will need to check whether it is £45,000, more than £45,000 or less than £45,000:
for babies due between 20 July 2008 and
* for babies due between 20 July 2008 and 25 July 2009, check your liability for 2007–08.
* for babies due between 18 July 2009 and 19 July 2010, check your liability for 2008–09.