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SolicitorRM
SolicitorRM, Solicitor
Category: Law
Satisfied Customers: 2295
Experience:  Director and Principal Solicitor. UK
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I'm currently on maternity leave and receiving SMP. I'm also

Customer Question

Hello, I'm currently on maternity leave and receiving SMP. I'm also claiming universal credit.
If I was to become a director of a company with no income or benefit from that company, would this affect me or my universal credit?
Submitted: 29 days ago.
Category: Law
Expert:  Nicola-mod replied 28 days ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Nicola
Customer: replied 28 days ago.
Hello, i don't mind waiting thank you
Expert:  SolicitorRM replied 28 days ago.

Hi, thank you for your enquiry and your patience. How you provide your services to the limited company will determine whether you carry on receiving SMP from your current employer on not. The general position is that you are able to start work for a new employer and still receive SMP from your old employer before the birth (regardless of whether you were employed by the new employer in the 15th week before baby was due). Once your baby has been born you cannot continue to get SMP from your old employer if you start work for a new employer, unless you were employed by the new employer in the 15th week before your baby was due. If you were not employed by your new employer in the 15th week before your baby was due and you start work for a new employer after the birth, you must inform your current employer who is paying you SMP of the date that you will be starting your new job so that they can stop paying your SMP. If you are resigning from your job you should give your employer the correct notice. You do not have to repay any SMP for the period before you started your new job. So clearly is you are going to be an employed director in your business what I have said above applies and your SMP will stop since you are looking to start the business and no chance you were already working for them before baby was due.

On theother hand if you are going to be a self-employed director your SMP will not be affected. I would strongly advise that if your decide to be a self-employed director and you are likely not to have other employees in the business to seek advice from an accountant as you may end up with issues with the HMRC where they will still treat you as employed despite your intentons. I hope this is useful to you and I would be grateful for you rating at your earliest convenience. All the best