In this week’s Q&A, Croner-i payroll advisor Joe Tabois, explains the rules for claiming statutory maternity pay leave tax break for connected companies
Are there rules for connected companies which prevent more than one connected company claimed small employer relief for statutory maternity pay (SMP??
For the purposes of statutory parental leave payments, there are no rules in respect of connected companies which prevent more than one connected company from claiming small employer’s relief (SER).
The Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 defines a small employer under regulation 2(1) as an employer whose contributions payments for the qualifying tax year do not exceed £45,000.
Firstly, the legislation refers to the singular employer which under regulation 1 of the same regulations defines employer without reference to, or any mention of, connected employers.
