Hi,

Is SMP counted as earnings for CA? I assume not and neither can I see that they're overlapping benefits although MA is.

Am I right?

Afraid not, SMP is treated as earnings for CA. See CPAG Handbook page 836.

worra b*gg**.

thanks.

Bit of a funny one this. She's left her employment after giving notice but they are to start paying her SMP. If she's not an employee then I can't see how it can be classed as earnings. Even the CPAG info about it comes under 'Employees'.

How can it be SMP if she's not an employee? Does it mean in practice she is treated as working out her notice, but being on maternity leave so not actually there?

I've been really flummoxed with this one myself. She gave two weeks notice to finish work completely to become a carer for her partner. She's no longer an employee from last week. Her employers told her they had to pay her even though she was no longer working there.

I checked through what I could but it was not clear because the inference was always on employer/employee relationship. I rang her former employer to clarify her position and told them she'd finished permanently but they still maintained they had to pay her and read me the relevant HMRC employers guide!

I rang HMRC and they said yes she will be paid it because baby's due on 16.08.2007 and she had been employed during the qualifying period of 29.04.2007 to 05.05.2007.

She doesn't want it!!

I am pretty sure that it is possible for someone to continue to receive SMP from an employer even if she has left a job. There is no requirement that someone on SMP intends to return to work. I think the key rules is that she must not have left her job before the start of her qualifying week (ie 15 weeks before expected date of delivery). So long as this applies and she meets the normal qualifying conditions for SMP and doesn’t start working for someone else during her SMP period, then payments continue even though she has given up work.

Unfortunately I think it's likely these payments will be treated like earnings for CA just like any other SMP.

Derek

Derek is right - the employer is liable for SMP as long as the client was still in employment in the qualifying week, as long as she meets all the other conditions.

I also agree with Derek that SMP is earnings and would be taken into account following the rules in CPAG Chapter 35.

Thanks to both of you