Worried about my SMP.. boss in financial trouble

immoral_angeluk

Argh! Why is it when things start looking up something comes and gives you a swift kick up the rectum.. my boss just called. We're not getting paid til the 10th because she hasn't got enough money to pay us! Looks like she's having serious financial troubles with the business so maybe it's a good job I'm not planning on going back. My boss is seriously digging herself into a massive pit which I'm best of out of by the looks of it! She's in loads of debt and has admitted that she's worrying about paying us in the future..Lets just hope my boss can afford to pay us next month... which brings me onto my question..
what happens if my boss can't afford to pay us? I'm on smp at the moment, is she allowed to keep this or anything?? If I don't get paid can I claim anything or would I just have to like it or lump it???
Any advice would be appreciated!

dag_2

I might be wrong on this, but ....

If your employer is finding it difficult to pay SSP or SMP because of cash-flow problems, then they might be able to get help from HMRC. At the very least they may be allowed to temporarily withhold enough payments of PAYE and NI deductions to HMRC to cover the SSP and/or SMP, and in exceptional circumstances HMRC might pay the employer a bridging loan. The penalties on employers for not paying SSP or SMP when they're supposed to can be quite severe.

However, if your employer doesn't have to pay you SMP for whatever reason, then claim Maternity Allowance from the DWP. Claims for Maternity Allowance can normally be backdated, though I'm not sure how long for - is it one month or three months anyone?

I'm not sure what the rules are for qualifying for Maternity Allowance, but if you don't get it, then you may be entitled to Income Support or Child Tax Credit. Claims for Income Support cannot normally be backdated to any earlier than the date that you picked up the phone to the Benefits Enquiry Line and asked for the form - so, do this as soon as possible.

If you're not sure whether or not your employer can withhold SMP, then claim MA and IS anyway.