Recovering Statutory Neonatal Care Pay (SNCP)

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

If you’re classed as a small employer, you can recover 8.5% in Small Employers’ Relief. Otherwise, you can recover 92%. Payroll calculates this for you.

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, read Small Employers' Relief or check this with HMRC. Find further information from the HMRC by reading Get financial help with statutory pay.

How do I get the reclaimed money?

The SNCP 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 SNCP reclaimed is greater than your liabilities for PAYE and NIC.

SNCP 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 SNCP amount on your P32 Employer Payment Record.

What you need to do

1. Create a Neonatal record in the ABSENCES stage of your pay run.
   For more information, read Recording Statutory Neonatal Care Pay (SNCP).
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.

Statutory Neonatal Care Pay (SNCP)

Statutory Neonatal Care Pay (SNCP) - qualifying rules

Statutory Neonatal Care Pay (SNCP) - entitlement

Recording Statutory Neonatal Care Pay (SNCP)