Statutory Maternity Pay Guide for Employers (2012-2013)

Statutory Maternity Pay Guide for Employers (2012-2013)

Recovering SMP

How much do I get back?

The amount you get back normally depends on your total gross, employer’s plus employee’s, Class 1 NICs in the last complete tax year before the Saturday of the employee’s QW. You can use your form P35 Employer Annual Return as a quick check of this.

If your annual liability for Class 1 NICs is £45,000 or less you are entitled to:

  • 100 per cent of the SMP, and
  • an additional amount as compensation for the NICs you pay on the SMP. The compensation rate for 2012–13 is 3 per cent.

Add together all payments of SMP made in the same tax months which you are entitled to recover and calculate 100 per cent plus 3 per cent of that total figure. The qualifying tax year for SMP purposes is the last complete tax year before the employee’s QW.

If your annual liability for Class 1 NICs is more than £45,000 you are entitled to 92 per cent of the SMP.

Add together all payments of SMP made in the same tax months which you are entitled to recover and calculate 92 per cent of that total figure.

You can only recover the SMP payable. Any additional Occupational Maternity Pay (OMP) or any other payments you make over and above the SMP payable is not recoverable.

Where does the money come from?

Use the money you have to pay over to HMRC:

  • PAYE tax
  • National Insurance contributions
  • Student Loan deductions
  • Construction Industry Scheme deductions.

You may also need to use this money to pay other statutory payments. Please make sure you have enough to cover all the payments you have to make. Use the quick check.

If you were not an employer for the whole of 2010–11 and 2011–12

If you only had part-year or no annual liability for Class 1 NICs for the previous tax year and this could be either more or less than £45,000 you will need to check whether it is £45,000, more than £45,000 or less than £45,000.

Check which tax year you need to look at depending on the baby’s due date:

  • for babies due between 17 July 2011 and 14 July 2012, check your liability for 2010–11
  • for babies due between 15 July 2012 and 13 July 2013, check your liability for 2011-12.

If you were not an employer at all in the tax year 2010–11 and 2011–12 use the SMP checksheets.

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