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Paying a retainer


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One of our staff is coming to the end of her maternity leave. Unfortunately she can't return when she wanted to in June because of her childminder, so will have to wait until September She will be losing her maternity pay in June but partly as a goodwill gesture and partly to make sure she doesn't change her mind, I thought about paying her a small retainer over the summer.

Has anyone done this before and if so are there any tax or NI considerations to be aware of? We were thinking of £100 a month.

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I have a feeling that £100 wouldnt make any difference to HMRC but I dont want her or us getting into unknown waters.

She's a wonderful staff member, very calm and quiet, a great opposite to other staff. They make a fab team.

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I wonder if you would be able to get round this by using the 10 'keep in touch' days to cover the payment, if she hasn't used these ? My staff whilst on maternity will attend INSET or meetings and get paid for these alongside their maternity pay - you could just pay the retainer in lieu of these possibly ? Or as her paid maternity has finished is it not ok for you to pay her anyway -can't see that HMRC would complain, would be no different to holiday pay really.

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I was kind of thinking it wouldnt matter to HMRC. I didnt know about the inset days though, so I could always tell the accountant thats what it was. Thanks Redjayne :1b

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lovely idea and how well this makes her feel a very valued staff member.

 

I dont think it will make any difference to HMRC, below levels for NI

 

can always justify odd payment ie staff training, working from home

Edited by Suer
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