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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SMP/SAP/SPP/ShPP: concurrent employment with different employers and earnings are aggregated

Treat the employers as one if an employee has two or more jobs with different employers and

the earnings from each are added together. See SPM190400.

This means:

  • only one payment of NICs is due
  • the employee is only entitled to one amount of SMP/SAP/SPP/ShPP.

The employers can agree between themselves how to split the liability for SMP/SAP/SPP/ShPP. If they cannot agree, the liability is split in the same proportion as the earnings paid to the employee.

When these employers are calculating the Class 1 NICs bill to establish if any recovery is due they must include the pro-rata NICs liability for shared employees.

The employer can only recover the proportion of SMP/SAP/SPP/ShPP that they have paid.

Normally the business that pays the wages will calculate and record any recovery due and claim it back in the usual way from their payments to Accounts Office.

At the end of the tax year they should record all amounts paid and recovered on their End of Year Returns, form P35 or substitute.

Example where earnings are aggregated between different employer’s

Company A (a large employer) and Company B (a small employer with a low monthly NICs bill) trade in association with each other.

They both employ Mrs Smith, who is pregnant, and each employer has responsibility for 50% of her earnings.

Company A actually pays Mrs Smith and includes all her earnings from both jobs on their return.

Company A’s P35 will show a recovery of 92% of their share of the SMP they pay Mrs Smith, and 100% plus NIC compensation of Company B’s share of the SMP.