Who pays maternity/paterntiy benefits?

whambamboo

I own a limited company that employs both me and my wife. We are both paid about £100/week salary. So we get our NI stamps.

She is pregnant, due date is about 7.5 months time.

She also is self-employed and pays NI on that.

I understand that you can get SMP and SPP, or possibly Maternity Allowance.

Does this money come from the government or the employer?

It's statutory, but does the money come from the employer's pocket or the government's?

immoral_angeluk

If she's an employee she will get SMP from her employer if she's been there long enough (Something like 6 months before she's 25 weeks pregnant.)

callansdad

This is a hard one, if she is classed as self-employed (does she own the company with you or have you employed her on a "self-employed" basis?) she will be able to claim Maternity Allowance and providing she pays her NI she will be entitled to the full amount of MA (claimed through job centre), as it stands she will be entitled to something like £108.** p/week. Because she is due after the 1st April 07 she will also be entitled to 39 wks paid mat leave instead of the 26wks that women get at the moment.

HTH but to double check i would advise talking to the job centre.

As regards to SPP i think it is normally the employer that has to pay it and then the government subsidises it IYKWIM. This all has to be checked out, your local IR should be able to give you advice to keep yourself right. The same stands for SMP but if your wife is classes as self-employed then she will be entitled to MA instead.