So, what does this look like for employers?
Example:
If you have an employee who works 40 hours per week on minimum wage, who is about to go off on maternity leave, you will now be able to claim back an additional £476.57 from HMRC if they are utilising the full 39 weeks of maternity leave:
Wages paid to employee
6 weeks at 90% pay £2,637.36
33 weeks of SMP £6,176.94
Total SMP £8,814.30
Employer funds received from HMRC
Old relief at 103% £9,078.73
New relief at 108.5% £9,563.52
Additional relief £484.79
Eligible employers are those who paid £45,000 or less in Class 1 National Insurance [excluding reductions such as the employment allowance] in the previous tax year.
These reclaims must be submitted to HMRC via payroll software. If Whyfield process your payroll for you this is something that we will action automatically on your behalf.
Should you not have PAYE/NIC liabilities in the current year to offset these repayments against you will need to write to the PAYE Employer Office to ask for a repayment which can be done after the start of the new tax year.
Please note: Statutory Sick Pay (SSP) is not reclaimable statutory pay and does not fall under this guidance.
As always if you would like any further information on this topic or have any questions at all, do not hesitate to get in touch with a member of the team.
Give us a call on 01872 267 267, email us contact@whyfield.co.uk, or message us on WhatsApp 0777 49 39 111
Get notified of our latest blog posts, along with lots of other good stuff, over on our socials: