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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

HM Revenue & Customs
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How statutory payments disputes arise

Employers are required to pay statutory payments (SPs) to employees where qualifying conditions are met. Some of the amounts paid can be recovered by the employer through their monthly National Insurance contributions and PAYE payments or by direct funding from their Accounts Office. Disputes may arise when

  • employers refuse to pay SPs to an employee,
  • employees disagree with their employers decision about whether the employee qualifies for SPs or the amount they are paid,
  • the Department for Work and Pensions (Great Britain) or the Social Security Agency (Northern Ireland) enquire whether an employee is entitled to statutory sick pay or statutory maternity pay when an employee claims certain state benefits,
  • Local Compliance, Specialist Investigations or Large Business Service find an error in the operation of the statutory payments schemes when they examine an employer’s records,
  • employers pay a statutory payment to employees in error and wrongly recover the money from the National Insurance Fund, or
  • employers recover the wrong amount of statutory payments and or NIC compensation from the NI Fund.