If you cannot afford to make payments
You can apply for HM Revenue and Customs (HMRC) to pay you in advance if you cannot afford to make statutory payments.
How to apply for advance payment
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Shared Parental Pay (ShPP)
You can apply up to 4 weeks before you want the first payment - HMRC may return your application if you apply earlier.
You can be charged a penalty (up to £3,000 per employee for each tax year) if you include incorrect information in your application.
Paying back your advance payment
If the statutory payments you reclaim are more than your PAYE deductions for that month, HMRC will automatically use what’s left to reduce what you owe on your advance payment.
You have £2,500 in PAYE deductions to pay after sending your Full Payment Submission (FPS).
You reclaim £3,000 in statutory payments in your EPS.
Your advance payment will be reduced by £500 (£3,000 minus £2,500).
If you still owe HMRC anything at the end of the period the advance covers, pay them by that month’s normal payment date.
Advance funding for previous tax years
To apply for advance funding for a statutory payment relating to a previous tax year that you’ve not paid yet, write to HMRC.
HM Revenue and Customs
What to include in your application
Your HMRC account information:
- your Accounts Office reference - you’ll find this on the cover of your P30BC payment booklet or P30B letter ‘Paying PAYE electronically’
- your PAYE reference - you’ll also find this on your P30BC payment booklet, or letter headed ‘New employer registration and reference numbers’
Details of your application:
- the name and National Insurance number of the employee you’re making the statutory payments to
- the date the employee started employment with you (in TUPE cases the date they started employment with the business, not the date you took over)
- the dates your claim relates to
- details of any reduction to your monthly or quarterly payments that you’ve made
- the total you’re entitled to reclaim
- the amount you’re claiming advance funding for
Specific information for the relevant statutory payment:
- for maternity and adoption pay, the expected date of birth or adoption
- for paternity pay, the actual date of birth or adoption
- for adoption pay, whether the adoption is in the UK or overseas
- for Additional Statutory Paternity Pay, the date the mother or joint adopter returns to work and stops getting Statutory Maternity Pay, Maternity Allowance or Statutory Adoption Pay
You should also include:
- the date your business started (in TUPE cases, the date the business started, not the date you took over)
- your contact details - for example name, telephone number
- details of the bank account you’d like HMRC to pay into - include sort code, account name and number (or building society roll number)
If you’re insolvent
HMRC will pay Statutory Maternity, Paternity or Adoption Pay if your employees were getting these payments when you become insolvent.
HMRC will also pay maternity pay for pregnant employees who have passed the qualifying week but have not started getting SMP.
You (or someone else like the administrator or liquidator) must contact the National Insolvency Unit and tell them you’re insolvent.
National Insolvency Unit Helpline
Telephone: 0300 0540 808
Monday to Thursday, 8:30am to 5pm
Friday, 8:30am to 4pm
Find out about call charges
You must also tell your employee to call the Statutory Payment Disputes Team.
Statutory Payment Disputes Team
Telephone: 0300 0560 630
Find out about call charges