Shared Parental Leave and Pay

Parents and children jpegHow it works

You and your partner may be able to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) if you’re:

  • having a baby
  • using a surrogate to have a baby
  • adopting a child

You can share up to 50 weeks of leave and up to 37 weeks of pay between you.

You need to share the pay and leave in the first year after your child is born or placed with your family.

You can use SPL to take leave in blocks separated by periods of work, or take it all in one go. You can also choose to be off work together or to stagger the leave and pay.

To get SPL and ShPP, you and your partner need to:

Eligibility for birth parents

To be eligible for Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP), both parents must:

  • share responsibility for the child at birth
  • meet work and pay criteria – these are different depending on which parent wants to use the shared parental leave and pay

You’re not eligible if you started sharing responsibility for the child after it was born.

More details and information can be found here

Paying an employee after giving them a P45

You need to tell HM Revenue and Customs (HMRC) when one of your employees leaves or retires, and deduct and pay the right tax and National Insurance.

You must give your employee a P45 when they leave.

Paying an employee after giving them a P45

If you have to pay an employee after they leave (including someone you’re giving a taxable redundancy payment over £30,000):

  • use tax code 0T on a ‘week 1’ or ‘month 1’ basis (use the code S0T if they’re taxed at the Scottish rate or C0T if they’re taxed at the Welsh rate)
  • deduct National Insurance (unless it’s a redundancy payment) and any student loan repayments as normal – but if it’s an ‘irregular’ payment like accrued holiday pay or an unexpected bonus, treat it as a weekly payment
  • report the payment and deductions in your next FPS, using the employee’s original ‘Date of leaving’ and payroll ID, and set the ‘Payment after leaving’ indicator
  • give the employee written confirmation of the payment showing the gross amount and deductions
  • add the additional payment in the ‘Year to date’ field if the payment is in the same tax year

The payment should be the only one in the ‘Year to date’ field if it’s being paid in the next tax year.

You must not give the employee another P45

Keeping Up To Date

checklistWe’ve put together a checklist for you to help you to keep up to date with all your responsibilities. Hope you will find it useful!  Don’t forget that we are here to guide you through if you need any help!

Have you:

  • filed your Charity Commission Annual Return?
  • had your annual accounts examined?

If you are a charitable company, have you –

  • filed your annual accounts with Companies House?
  • checked when you should complete your Companies House annual return?
Have you:
  • registered with the Information Commissioner’s Office re Data Protection Fees?
  • checked when your insurance is up for renewal?
  • planned how to continue delivering services under conditions of COVID?
  • established working from home procedures, and will you need to change contracts of employment?
  • thought about how you will recruit new trustees and hold meetings?
  • started preparing your annual budget? If you need any help, do contact DCAS
 …..and finally – don’t forget to feel a sense of pride for all the work your charity does, and the important role charities play in the life of Derby!