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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SMP/SAP/SPP/ShPP: advance funding

Employers are expected to use the PAYE tax, NICs, Student Loan deductions and Construction Industry Scheme deductions to fund SMP, SAP, SPP, and ShPP. However they may also have to use these monies to pay their employees’ SSP, tax rebates or tax credits, and sometimes they will not have enough. Where the employer estimates that there will be insufficient deductions to cover the SMP, SAP, SPP, and/or ShPP they need to pay they can apply to HMRC for funding, see SPM180800.

Regulation 5 of the Statutory Maternity (Compensation of Employers) and Miscellaneous Amendment Regulations 1994

Regulation 4 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002

HMRC are responsible for:

  • reimbursing employers when it is not possible for the employer to recover the amount due to them from their normal payments to Accounts Office (AO)
  • making an advance payment of all or some of a statutory payment with the exception of SSP to the employer to enable them to pay their employee.

Depending on the circumstances the HMRC office responsible for making the payments are as follows:

  • Refunds Group, Benton Park View, for payments to be made to employers who apply for reimbursement after their PAYE scheme for the year of payment of the statutory payment has been closed, see SPM181300
  • AO for advance funding of SPP, SAP and SMP