Statutory Pay Funding

It is possible to apply for an advance from HMRC if an employee has applied for Maternity Pay, Paternity Pay, Adoption Pay or Shared Parental Pay.

  • Applications can be made up to 4 weeks before the employer would like the payment. This is to aid employers who may not be able to afford the statutory payments at that moment in time.

Paying back the advance payment

The employer or payroll service provider must send an Employer Payment Summary (EPS) for each pay period that includes any Statutory Payments. This must be done even if an advance has been received from HMRC. If the Statutory Payments that are being reclaimed are more than the PAYE deductions for that month then HMRC will use what’s left to reduce what you owe on your advance payment.

Previous Years

It is possible to apply for funding for a previous tax year where the statutory payment has not yet been made. A letter must be sent to HMRC with all the details of the company applying for the funding and the details about the employee who is claiming the statutory payment from the company.

Insolvency

HMRC will continue to pay Statutory Maternity, Paternity and Adoption pay to an employee if the company they were claiming these from becomes insolvent. Any pregnant employee who has passed the qualifying week but is not yet in receipt of Statutory Maternity Pay will also be paid by HMRC.

If you would like to discuss this blog in more detail please email Emma Mahoney or call us on 01772 821 021.