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HMRC internal manual

Statutory Payments Manual

Paying and Recovering - SSP/SMP/SAP/SPP/ShPP: deductions

SSP/SMP/SAP/SPP/ShPP are a replacement of earnings, not a benefit, so any deductions which the employer would normally lawfully make from wages can also be made from these. This includes:

  • tax and NICs
  • superannuation
  • an overpayment of wages
  • trade union subscriptions
  • pension contributions.

Employment Rights Act 1996, 27.


Deductions which cannot be made from Statutory Payments

Deductions such as the following cannot be made from SMP/SAP/SPP/ShPP:

  • Attachment of Earnings Orders, including Council Tax Orders
  • Deductions of Earnings Orders for Child Maintenance and Enforcement Commission (in Scotland, Arrestment of Earnings Orders)

The attachment of Earnings Act 1971, 24,(2)(c)

If in doubt contact PT CPP Statutory Payments (Technical) Team for advice.