Being a limited company director, when you find out you are going to have a baby or adopt a child, you can apply to be funded in advance for your statutory pay through HMRC.
How this works?
From HMRC financial help is always available to small businesses when they require assistance with their cash flow for making statutory maternity, paternity, adoption, and shared parental payments to employees, and that includes directors or directors of a limited company. At present, this is up to £6,074 if you or your employee is entitled to 39 weeks at the statutory maternity pay (SMP) rate of £151.20.
Limited company’s statutory payments (except for sick pay) would normally be offset against the company’s PAYE liabilities during the normal course.
However, you can apply for advance funding from HMRC if the total of your PAYE deductions for income tax, National Insurance Contributions (NICs), student loans, and so on is less than the cost of the statutory payments you are required to make, hence it is a great help.
We can Help?
Direct Assist – Chartered Certified Accountants can help with this – just get in touch.