All Employers can reclaim 92 per cent on their parental payments: Statutory Maternity (SMP), Statutory Paternity (SPP), Statutory Adoption (SAP), Statutory Parental Bereavement (SPBP) and Shared Parental (ShPP).
To qualify for Small Employers’ Relief, the employer must have paid £45,000 or less in Class 1 National Insurance Contributions (NIC) in the last complete tax year before the qualifying week.
If the business qualifies for Small Employers’ Relief, the employer can reclaim 103 per cent of the payments.
To reclaim the parental payments, the employer should ensure they have indicated this within their payroll software, which should then automatically calculate the sum recoverable.
The payments should then be included in an Employer Payment Summary (EPS) to HM Revenue & Customs (HMRC).
For advice on Small Employer’s Relief. Please get in touch.