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What is the small employers relief?
What is the small employers relief?
Nicolas Croix avatar
Written by Nicolas Croix
Updated over 2 years 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.

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