Statutory Maternity Pay Guide for Employers (2012-2013)

Statutory Maternity Pay Guide for Employers (2012-2013)

Get help with statutory payments funding


Advance funding

If you need to provide statutory payments to an employee this should be funded from the payroll deductions you are due to send to HMRC. These deductions include PAYE tax, NICs, Student Loan deductions and Construction Industry Scheme deductions. If you don’t have sufficient deductions available to cover your statutory payments, then you may be able to claim funding from HMRC to cover the balance.

The checksheet below will help you decide if you can claim advance funding.

You can ask your HMRC accounts office to pay you the balance of the amount you are entitled to.

If you obtain incorrect funding, either fraudulently or negligently, you could be liable to a penalty up to a maximum of £3,000. HMRC will charge a penalty for each employee for whom you claimed advance funding incorrectly. HMRC will also charge a penalty for each year for which you claimed advance funding incorrectly, if the claim spans more than one tax year. HMRC will increase the amount of the penalty for a repeat offence.

No PAYE payment to make

If, after deducting your statutory payment(s) from your current or next PAYE payment to HMRC, you do not have a payment to make to HMRC, you must advise HMRC. If you do not, you may receive reminders or phone calls. There are several ways to advise HMRC that you do not have a payment to make:

  • complete an online form, go to www.hmrc.gov.uk/payinghmrc/paye-nil.htm for details
  • send HMRC a signed payslip for the correct month or quarter marked ‘NIL due’
  • phone HMRC on 0845 366 7816 – you will need to provide your accounts office reference number and the details of the month or quarter where no payment is due. If you believe no payments will be due for several months please contact HMRC on 0845 366 7816.

A quick check to see if you need advance funding

Total amount of Statutory Maternity Pay (SMP), Ordinary Statutory Paternity Pay (OSPP), Additional Statutory Paternity Pay (ASPP), Statutory Adoption Pay (SAP) and Statutory Sick Pay (SSP) you can get back A 
£
PAYE tax B
£
 
National Insurance contributions (including those on SMP) C
£
Student Loan deductions D
£
Construction Industry Scheme deductions E
£
Total amount you will have available in the same tax month or quarter (total of boxes B + C + D + E) = F 
£

If F is less than A write to your HMRC accounts office to ask for an advance of the difference.

If you need any help phone the Employer Helpline on 08457 143 143.

Applying for advance funding

The way that you apply for advance funding depends on whether the statutory payment is relevant to the current tax year or a previous tax year.

Statutory payment relevant to the current tax year

You can apply online at www.hmrc.gov.uk/paye/employees/statutorypay/ funding.htm Providing the information set out in the quick check box above and ask for advance funding.

Statutory payment relevant to a previous tax year

If the SMP is relevant to a previous tax year you cannot apply online, you must write to your accounts office. You should tell them the information set out in the quick check box above and ask for advance funding. You should record the payments of SMP as normal, see Recording payments of SMP.

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