21 April 2026
All employers that pay Class 1 National Insurance contributions can reclaim 92% of statutory parental payments paid to employees, However, eligible small employers may be able to reclaim more.
Small Employers Relief (SER) can be used to offset liabilities for the following statutory payments:
- Statutory Maternity Pay (SMP).
- Statutory Paternity Pay (SPP).
- Statutory Adoption Pay (SAP).
- Statutory Parental Bereavement Pay (SPBP).
- Statutory Neonatal Care Pay (SNCP).
- Shared Parental Pay (ShPP).
Who is eligible?
Employers qualify for SER if their total Class 1 National Insurance Contributions (NICs) were less than £45,000 in the previous tax year before the qualifying or matching week.
The qualifying week is the 15th week before the Expected Week of Confinement (EWC). For adoption cases only, the relevant period is the 15th week before the matching week.
The total Class 1 NICs amount can be calculated by generating a P32 for months 1-12 of the previous tax year.
What can be claimed?
From 6 April 2026, employers eligible for SER, can reclaim 100% of the statutory payments made, plus an additional 9% compensation. This means small employers can reclaim 109% from HMRC.
If an employer is not eligible, and pays Class 1 NICs, they can still reclaim the standard recovery rate of 92%.
The only exception is Statutory Sick Pay (SSP), which cannot be reclaimed.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
