Recovering Statutory Adoption Pay

How to reclaim Statutory Adoption Pay (SAP) from HMRC in Sage Payroll.

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

If you’re a small employer, you can recover 100% plus 8.5% (2025/26) or 9% (2026/27) in Small Employers’ Relief (SER). Otherwise, you can recover 92%. Sage Payroll calculates this for you.

For more information, read Small Employers' Relief.

How do I get the reclaimed money?

The SAP reclaimed will offset (reduce) against your liability to HMRC. It will show for your chosen reporting frequency (monthly or quarterly).

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

SPP 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 at gov.uk.

What you need to do

1. Create a paternity record in the ABSENCES stage of your pay run.
   For more information, read Statutory Adoption Pay (SAP).
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.