SMP Recovery

Question asked by Helen Stephens 8 years ago

Hi,

Please can you advise if the recovery of SMP on Clearbooks is set as standard to 100% recovery plus the additional compensation of 3%. If so, how can this be changed to 92% recovery excluding the 3% compensation? The reason I ask, is that I've received a letter from the HMRC advising of an over-claim for a previous year, and I have an employee due to go on maternity leave shortly and would like the records to be straight before SMP kicks in.

I would appreciate your response soonest.

Many thanks Helen

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3 Replies

Hi Helen,

I have been updated with the below - hopefully this answers your query

The figures get updated every year once HMRC send them to us, and the calculations are required to pass HMRC's test suite before the tax year goes live.

The rules for which recovery percentage to use (103 or 92) are here https://www.gov.uk/recover-statutory-payments/reclaiming

The way this works in Clear Books is the previous tax year is examined to determine if you qualify for relief. The only reason this would be incorrect is if you've moved to Clear Books Payroll from another software provider and have no figures for the previous tax year (in which case, with the information we have, you would be seen as qualifying for the 103%). A way to prevent this would be to enter the previous year's figures, or at least one payment that exceeds the class 1 NI limit in the previous tax year. As soon as there is a full previous tax year to look back on, this will be calculated correctly.

Best answer
8 years ago

Many thanks - I look forward to hearing back from somebody. Helen

8 years ago

Hi Helen,

I have escalated this to our product team who will be in contact shortly.

8 years ago

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