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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

Notices of decision: Wording of statutory payments decisions: Examples of recovery of statutory payments and NIC compensation decisions

DANSP37000 provides information about the legislation that allows decisions to be made about the recovery of statutory payments and the National Insurance contributions (NIC) compensation that can be claimed.

The examples below apply the legislative requirements and general principles described in DANSP29200 and DANSP29300.

Example 1

My decision is that:

You are not entitled to recover any statutory sick pay paid to employees from 6 April 2008 to 5 July 2008.

Commentary about decision

If the person liable to pay statutory sick pay does not qualify under the percentage threshold scheme, see SPM10910, they cannot recover any SSP. No person liable to pay SSP can claim NIC compensation, see SPM10905.

Example 2

My decision is that:

You are entitled to recover £5,634.98 of the statutory maternity pay you paid to employees from 6 May 2008 to 5 March 2009.

You are not entitled to claim an additional amount of 4.5 per cent of the statutory maternity pay you paid to employees in the tax periods from 6 May 2008 to 5 March 2009.

Commentary about decision

In this example the person liable to pay statutory maternity pay (SMP) is told how much they can recover of the SMP they have paid. If they are not entitled to Small Employers Relief, see SPM21300, they can only recover 92 per cent of the SMP paid to employees and cannot claim NIC compensation.

Example 3

My decision is that:

You are entitled to recover £1,567.98 of the statutory maternity pay you paid to Joanne Carr from 6 May 2008 to 5 January 2009.

You are not entitled to claim an additional amount of 4.5 per cent of the statutory maternity pay you paid to Joanne Carr in the tax periods from 6 May 2008 to 5 January 2009.

Commentary about decision

In this example the employee is named. This is only necessary where the employer satisfies the conditions to recover SMP at 100% and claim NIC compensation for some employees and not for others.

Example 4

My decision is that:

You are entitled to recover 92 per cent of the £6,124.98 statutory maternity pay you paid to employees from 6 May 2008 to 5 March 2009.

You are not entitled to claim an additional amount of 4.5 per cent of the £6,124.98 statutory maternity pay you paid to employees in the tax periods from 6 May 2008 to 5 March 2009.

You recovered £6,124.98 of the statutory maternity pay you paid to employees from 6 May 2008 to 5 March 2009.

You claimed an additional amount of £275.62, representing 4.5 per cent of the statutory maternity pay paid to employees in the tax periods from 6 May 2008 to 5 March 2009.

You are therefore liable to pay £765.62 of incorrectly withheld Class 1 contributions.

Commentary on decision

In this example 8 per cent of the SMP recovered was incorrectly withheld from Class 1 NIC payable to HMRC, i.e. £490, as well as the NIC compensation of £275.62.