All employers can recover some, if not all, of the SMP that they pay to employees.

If you’re a small employer, you can recover 100% plus 8.5% (2025/26) or 9% (2025/26) in Small Employers’ Relief (SER). Otherwise, you can recover 92%. Payroll calculates this for you.

For more information, read Small Employers' Relief.

How do I get the reclaimed money?

The SMP reclaimed offsets (reduce) against your liability to the HMRC for that reporting period (monthly or quarterly).

HMRC will only owe you money if the amount of SMP reclaimed is greater than your liabilities for PAYE and NIC.

SMP reclaimed records when you submit an Employer Payment Summary (EPS).

For more information, read Employer payment summary (EPS) submissions and P32 payments.

Do I qualify for Small Employers Relief?

Your company qualifies for Small Employers’ Relief if:

• Your NI contributions were £45,000 or less in the full tax year before the employee's qualifying week

If you’re unsure whether you qualify for small employers' relief, check with HMRC. Find further information from the HMRC at gov.uk.

What you need to do

1. Create a maternity record in the ABSENCES stage of your pay run.
   For more information, read Recording Statutory Maternity Pay (SMP).
2. Complete the pay run.
3. Submit your Employer Payment Summary (EPS) once the tax period is complete. This informs HMRC of the reclaimed amount.
   For more information, read Employer payment summary (EPS) submissions and P32 payments.
4. Run your P32 report to see the recovered amount and your overall liability to HMRC.