Recovering Shared Parental Pay (ShPP)

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

If you’re classed as a small employer, you can recover 100% plus 3% (24/25) or 8.5% (25/26) in Small Employers’ Relief. 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 ShPP 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 ShPP reclaimed is greater than your liabilities for PAYE and NIC.

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

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

 TIP: You can see the ShPP amount in your P32 Employer Payment Record.

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, you should check this with HMRC. Find further information from the HMRC by reading Get financial help with statutory pay.

What you need to do

1. Create a relevant absence record in the ABSENCES stage of your pay run.
   For more information, read Recording Shared Parental Pay (ShPP)
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.

Shared Parental Leave and pay

Shared Parental Pay (ShPP) - qualifying rules

Shared Parental Pay (ShPP) - entitlement

Recording Shared Parental Pay (ShPP)