All employers can reclaim some, if not all, of the Statutory Adoption Pay (SAP) they pay to employees.

If you’re classed as a small employer, you can reclaim 100% plus 3% in Small Employers’ Relief. Otherwise, you can reclaim 92%.

Your company qualifies for Small Employers’ Relief if:

• Your liability for National Insurance (NI) contributions was £45,000 or less
• This was in the last complete tax year before the employee’s matching week

If you’re a new employer or unsure whether you qualify for Small Employer’s Relief, check this with HMRC. You can find further information from the HMRC website. Recover statutory payments (opens in new tab).

 TIP: Payroll calculates SAP in whole weeks only, from the adoption start date. For example, if the adoption starts on Wednesday. The week is Wednesday to the following Tuesday. 

1. Make sure to record the Statutory Adoption Pay (SAP) in the absence section of your pay run.
2. Send your Employer Payment Summary (EPS) once the recording period is complete. This is Monthly or Quarterly. This will inform HMRC of the reclaimed amount as reflected on your P32.