All Collections
Company settings
Payroll
What is the small employers relief?
What is the small employers relief?
Nicolas Croix avatar
Written by Nicolas Croix
Updated over a week ago

All employers can reclaim some, if not all, of the statutory parental payments that they pay to employees. You can reclaim 100% plus 3% in small employers' relief if you're classed as a small employer. Otherwise, you can reclaim 92%.

Who qualifies?

Your company would qualify for small employers' relief if the total of your employer and employee liability for national insurance (NI) contributions were £45,000 or less in the last complete tax year before the employee's qualifying week or adoption, the matching week.

  • For babies due between 22 July 2020 and22 July 2021 - C20 July liability for 2019/20.

  • For babies due from 21 July 2021 - C21 July liability for 2020/21.

If you weren't an employer for some or all of the tax year before the employee's qualifying week, you must check your small employers' relief status with HMRC.

Did this answer your question?