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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SMP/SAP/SPP/ShPP: how does an employer apply for 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 not have enough money from the deductions to pay out all the statutory payments that they are liable to pay.

In each tax month or quarter the employer should work out whether they have enough deductions to cover what they have to pay out in SMP, SAP, SPP, and ShPP. They should then apply to their HMRC Accounts Office for the balance.

Statutory payment relevant to the current tax year

Employers can apply online at GOV.UK for advance funding.

Statutory payment relevant to a previous tax year but has not yet been paid

Employers cannot apply online if the statutory payment is relevant to a previous tax year and they have not yet made the statutory payment.

All applications for advance funding in these circumstances must be made in writing, setting out the calculation, to the relevant HMRC Accounts Office.

For SMP, SAP, SPP, or ShPP paid in a previous tax year see SPM181000