What is statutory maternity pay?

Statutory Maternity Pay for unpaid Company Director?

• My wife is the executive director of a small company, and has been for the last 2 years, in which I am also a director and we own all the shares in the company between us. Neither of us have ever been paid from the company and both have other jobs as well. I understand that Statutory Maternity Pay can be paid for 2 jobs and I was wondering if there is now any way to get her to the threshold of being eligible for SMP from our company or whether we have left it too late now as she has never paid any NI contributions for pay received from this company. Thank you in advance

• Answer:

  Is the company not earning sufficient profits for you to draw a salary or vote dividends? I would assume that the company does not have a PAYE scheme in operation? In order to get maternity pay the employee needs to have worked for the employer continuously - full or part-time - for at least 26 weeks up to and into the 15th week before the week the baby's due average earnings at least equal to the lower earnings limit for NICs - £90 a week or £390 a month for 2008-09. I would say that unless you have already voted a fee for yourselves as directors (but not actually drawn it) and operated PAYE on the amount, I don't think that you can do it. If it was that easy, everyone would set up companies; turn over minimum amount then claim SMP/SSP through the coy. This answer is only based on limited knowledge. I would recommend that you contact HMRC on 08457 143 143.