Hi,
I'm a company director of a small business. I run the company with one other director (who doesn't have kids). We employ freelancers on a project basis as and when we need them, but not as employees. I'm 15 weeks pregnant so we need to work out what we're going to do while I'm on mat leave.
As I understand it, I think I can claim SMP, although it probably won't be much because we pay ourselves a minimum amount in salary and top up using dividends. What is the norm with dividends while you're on mat leave, though? I've read in another thread that I can continue to take dividends, because while SMP covers me as an 'employee' of my company (which I am), company directorship is treated separately and I could continue to be paid dividends.
My colleague and I haven't discussed this yet. I don't want to insist on continuing to be paid dividends while I'm not actually working - that hardly seems fair on her - but on the other hand should I get a proportion at least rather than waiving completely, as technically being a company director and having grown a moderately successful business mean I'm entitled to a share in the profits even if I'm not actually working? Or is this unreasonable and not 'the norm'?
I'm in a quandary. Any advice would be greatly appreciated! We have an accountant we can speak to, but I'd love to know what others have done in this situation before I discuss it with my accountant and colleague. Thank you...
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SMP and dividends for company director while on maternity leave - please help!
6 replies
LeanOut · 15/07/2014 14:24
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