Guidance surrounding the reporting of Statutory Parental Bereavement Pay Published by HMRC
08 October 2019
The Software Development Support Team (SDST) at HMRC have released instructions for software developers in relation to Statutory Parental Bereavement Pay (SPBP), a new form of statutory parental pay due for implementation at the start of the new tax year.
The introduction of the new pay element was announced after a consultation on the topic was held, and the arrival of the guidance will be welcomed as it means that developers can be fully prepared for the upcoming change from April 2020.
SPBP will be available to employees who suffer the loss of a child under the age of 18 or who have had to cope with the stillbirth of a child from 24 weeks of pregnancy onwards. Employer and parent guidance on the subject is expected to arrive on the Gov.UK website in December 2019, which again, gives sufficient time for all affected parties to prepare for the changes. Forms relating to SPBP will also be published at this point.
SDST has provided advice for software developers which employers and payroll practitioners may also find useful, as per below.
The document covers a variety of points relating to SPBP. One major component of the document relates to eligibility and the qualifying criteria that need to be observed before paying SPBP - when and how the leave can be taken, employee length of service and earning conditions and technicalities surrounding the child’s relationship with the employee.
SPBP will be paid at £148.68 per week (tax year 2019/2020) in line with other statutory parental payments and will also be subject to an increase each tax year. The payment can be made for two weeks, or across two one-week blocks, or for a singular week, dependent on how the employee wishes to take their leave. Basic PAYE tools online will include a calculator, to aid with the SPBP process and figures.
There are strict record-keeping instructions and the document expands on exactly what they are.
The most important area for developers will be how SPBP is reported to, and reclaimed back, from HMRC. The process is in line with other statutory payments, as it is to be reported via FPS and reclaimed back through the EPS.
P60s will include a new section in which to record any SPBP figures, but there is no stipulation that it needs to be itemised separately on payslips.
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