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HMRC internal manual

Statutory Payments Manual

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HM Revenue & Customs
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Paying and Recovering - SMP/SAP/SPP/ASPP/ShPP: recovering additional SP paid as a result of a backdated pay award

Employers, who have paid employees arrears of SMP/SAP/SPP/ASPP/ShPP under the provision governing backdated pay awards, can recover the additional amount of SP from their payment to Accounts Office as normal

Legislation provides that employers should use the rate appropriate at the time the SP payment would have been due, for example, they should use the compensation rate for 2008/09 if:

  • the SP should have been paid in April 2009, and
  • the employer qualified for SER in the 2008/09 tax year.

However, to reduce the administrative burdens on business, employers can use the rate of SP compensation current at the time the additional payment is made.

Regulations 4 and 6 of the Statutory Maternity (Compensation of Employers) and Miscellaneous Amendment Regulations 1994

Regulations 3 and 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002

Regulation 3 and 5 of the Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations (Northern Ireland) 2002