Statutory Maternity Pay ( SMP ) is paid for up to 39 weeks. You get: 90% of your average weekly earnings (before tax) for the first 6 weeks. £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
Why has SMP not been paid?
If your employer does not pay you SMP because they are insolvent, payment will be made by Her Majesty’s Revenue and Customs (HMRC). They will only do this when your employer has been formally declared insolvent. If your employer is insolvent, you should phone the Statutory Payments Disputes Team on 0300 322 9422.
Can my employer refuse to pay SMP?
You can refuse Statutory Maternity Pay ( SMP ) if the employee does not qualify. They may be able to get Maternity Allowance instead. To refuse it, give the employee the SMP1 form within 7 days of your decision.
Is SMP claim back from HMRC?
Employer or the government? Who pays UK statutory maternity pay (SMP) depends on the size of the business. An employer can claim potentially all, or most, of this money back from HM Revenue & Customs (HMRC) depending on their class one National Insurance contributions.
What is the current SMP rate 2021?
Once you have worked out your employee’s average weekly earnings, SMP is payable weekly as 90% of the employee’s average weekly earnings (AWE) for the first 6 weeks, or £151.20 (£151.97 for 2021/22 tax year) or 90% of their AWE (whichever is lower) for the remaining weeks.
Can SMP be paid as a lump sum?
SMP is a weekly rate but your employer does not have to pay you weekly. Your employer can pay SMP as a lump sum, as long as the rules for paying NI contributions are obeyed. If you are paid SMP in a lump sum you and your employer could pay more in NI contributions than if you are paid monthly or weekly.
What happens if I don’t qualify for SMP?
If you do not qualify for SMP, you can claim Maternity Allowance instead from the JobCentre Plus. Agency and other workers are not entitled to maternity leave, unless it is stated in your contract, but you may be able to agree some time off with your agency or employer.
How do I claim back SMP from employer?
To reclaim the payments, include them in an Employer Payment Summary ( EPS ) to HM Revenue and Customs ( HMRC ). You can write to the PAYE Employer Office to ask for a repayment if you cannot set off the payments against the current year’s liabilities. You cannot do this until the start of the next tax year.
When can an employer claim back SMP?
The majority of employers can reclaim from the Government 92% of all amounts of statutory maternity pay (SMP) that they have paid out. Reimbursement is achieved by deducting the gross amounts of SMP paid from the total amount of national insurance contributions due for the relevant tax month.
