I need to confirm some information. I have had client's come and see me with regards their SMP, which as we know is an earning replacement benefit and is taxed. The confusion is when we are conducting benefit checks via QBC it shows that the client will receive £117.18 per week. CPAG page: 535 also states client will receive £117.18 per week. However, is this before tax???? I have spoken to DWP statutory interpretations (number can be found on directgov.uk and they have clearly stated that the amount of £117.18 is before tax.

This looks to me as if the info we are giving to our client's is possibly wrong????

Also KIT day's the 10 day's you are allowed to work within your SMP period, some employer's are recovering SMP for period's of work as an employee is paid at normal wage. However, I have again contacted directgov and spoken to statutory interpretations who are clearly stating that SMP should NOT be recovered. This is however not being accepted by Inalnd Revenue or wages department's. Has anyone had any queries?

can people please help? Thanks
Emma

Hi,

SMP is taxable, it is in the Social Security Contributions and Benefits Act 1992, s4(1). The £117.18 is before tax and NI so mostly the employee will actually receive less than that.

The point of KIT days is that the employer continues to pay SMP (and therefore claims that back from HMRC). There are no rules on what a woman should be paid anything on top of SMP or if she should get her SMP plus her normal wage. She should agree with her employer what she will be paid before she agrees to the KIT day, and if it's not enough don't do it! We have been advised that the minimum wage applies to KIT days and there might be issues under the Equal Pay Act.

Hope this clears things up a bit.

Cathy

Hi Cathy

Thanks, for clearing that up...

With regards KIT days, in the situation my client was in there had been no agreement either way and so when SMP was recovered from the client we contacted Stat interpretation. (The employer was going to pay normal wage on KIT day's.) The interpretation team said that they would take on the dispute as they looked in to Act etc and decided that the SMP should not be recovered. I think this might become clearer if there is a test case. My client wont be as Stat investigating would nothave been of benefit to her in other ways.

Thanks
Emma

What would have made sense it if there were clear rules on KIT days and pay before they came into law, but there we go!!!