Reclaiming statutory payments can be a minefield for businesses. Do you know if your business can claim Small Employers Relief? We can answer that below…

  • All employers can reclaim 92% of statutory payments, excluding statutory sick pay.
  • If the business qualifies for Small Employers’ Relief (if you have paid £45,000 or less in Class 1 National Insurance) 103% of statutory payments can be reclaimed.

Reclaiming statutory payments is easy…

  • To reclaim payments made an Employer Payment Summary (EPS) must be sent at the end of the PAYE month, via RTI, to HMRC. This is then offset against the current year’s PAYE liabilities.
  • If an employer doesn’t have enough PAYE liability to offset the reclaimed payment against, they can recover the statutory payments made using a SP32 form once the tax year has finished.
Unable to Pay?

Statutory Payments can be costly… Employers can apply for an advance for HMRC to ease this cost;

  • Applying for an advance payment…

Applications are made online at HMRC and should be done 4 weeks before first payment is due. Earlier applications may be returned by HMRC. Misleading applications with false information can lead to a fine of £3,000 per employee!

  • Paying back advances…

Advance payments are paid to HMRC in your PAYE at the end of each period.


Start a Conversation