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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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HM Revenue & Customs
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Decision types: Statutory payments decisions: Recovery of statutory sick pay and statutory maternity pay and NIC compensation decisions

Decisions about whether an employer can

  • recover any part of the statutory sick pay (SSP) or statutory maternity pay (SMP) they pay to employees, and/or
  • claim National Insurance contributions (NIC) compensation

are made under section 8(1)(g) of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (Transfer Act) or Article 7(1)(g) of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SI 1999 No 671) (Transfer Order).

Legislation about recovery and NIC compensation is in

  • Part 11 of the Social Security Contributions and Benefits Act 1992 and the Statutory Sick Pay Percentage Threshold Order 1995 (SI 1995 No 512) - SSP
  • Part 12 of the Social Security Contributions and Benefits Act 1992 and the Statutory Maternity Pay and Miscellaneous Amendment Regulations 1994 (SI 1994 No 1882) - SMP

Guidance about what can be recovered starts at SPM10900 for SSP and SPM21200 for SMP.

NIC compensation cannot be claimed when SSP is recoverable, so you should not have to issue decisions about NIC compensation where SSP is recoverable.

Decisions under section 8(1)(g) of the Transfer Act or Article 7(1)(g) of the Transfer Order include decisions about whether

  • a person can recover and, if they can, how much they can recover from payments to HMRC or be paid from the National Insurance Fund in respect of statutory sick pay or statutory maternity pay paid to their employees,
  • a person liable to pay SMP is a small employer entitled to NIC Compensation in respect of SMP,
  • a person liable to pay SSP or SMP have claimed within specified time limits.

DANSP37000 explains how to word such decisions.