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Recover statutory payments from HMRC

How to claim back statutory payments (SMP, SPP, SAP, ShPP) from HMRC.

Guide summary

Recover most statutory payments (maternity, paternity, adoption, shared parental, parental bereavement) by reducing your monthly PAYE payment. You recover 92% of what you paid, or 109% if your total Class 1 National Insurance was under £45,000 last year. You cannot recover Statutory Sick Pay (SSP).

  • Pay statutory payments to employees first
  • Submit an Employer Payment Summary (EPS) by the 19th of each month
  • Deduct recovery from your monthly PAYE bill
  • Standard recovery rate is 92% of payments
  • Small employers can recover 109% of payments
  • Small employer threshold: total Class 1 NI under £45,000 last year
  • Apply for advance funding if recovery is more than your PAYE
  • SSP cannot be recovered since April 2014
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When you pay statutory payments to employees (maternity, paternity, adoption, shared parental, parental bereavement), you can recover most of the cost from HMRC by reducing your monthly PAYE payment.

What you can recover

  • Statutory Maternity Pay (SMP) - 92% or 109%
  • Statutory Paternity Pay (SPP) - 92% or 109%
  • Statutory Adoption Pay (SAP) - 92% or 109%
  • Statutory Shared Parental Pay (ShPP) - 92% or 109%
  • Statutory Parental Bereavement Pay (SPBP) - 92% or 109%
  • Statutory Neonatal Care Pay (SNCP) - 92% or 109% (from April 2025)

Important - Statutory Sick Pay (SSP) cannot be recovered since April 2014.

Small Employers Relief

You qualify for the higher 109% recovery rate if your total Class 1 National Insurance (employee + employer) in the previous tax year was £45,000 or less.

The extra 9% is compensation for the administrative burden of processing statutory payments.

How to claim recovery

  1. Pay the employee - include statutory payment in their wages
  2. Report on FPS - include statutory payment amounts
  3. Submit EPS - report recoverable amounts by 19th of month
  4. Reduce PAYE payment - deduct recovery from your monthly bill

If recovery exceeds PAYE liability

If the statutory payment recovery is greater than your PAYE bill (for example, small employer with employee on maternity leave):

  • Submit EPS - showing the full recovery amount
  • HMRC will refund - the difference will be credited
  • Advance funding - you can apply for advance payment if needed