Small Employers’ Relief is increasing from 8.5% to 9% in April 2026. What does this mean?
What is Small Employers’ Relief?
Most employers can reclaim 92% of statutory parental payments such as maternity, paternity and adoption pay from HMRC when running their payroll.
However, Small Employers’ Relief allows some employers to claim 100% of payments PLUS 9% of total payments as compensation (currently 8.5%).
Who is eligible?
Employers who have paid less than £45,000 in Class 1 National Insurance (before any deductions such as Employment Allowance) in the previous tax year are eligible to claim Small Employers’ Relief.
Which types of payments can it be used for?
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Shared Parental Pay
- Statutory Parental Bereavement Pay
- Statutory Neonatal Care Pay
How is it claimed?
Employers need to reduce their monthly PAYE amount by the monthly statutory payments plus the 9% compensation. HMRC needs to be informed of this deduction via an Employer Payment Summary.
Please contact us to understand how we reclaim payments and compensation on behalf of our clients.