SPM21305 - Statutory Maternity Pay (SMP) - Small Employers' Relief (SER): definition of a small employer

The rules for determining who is a small employer for SER are laid down in:

  • SMP (Compensation of Employers) and Miscellaneous Amendment Regs 1994 (SI 1994/1882)
  • SMP (Compensation of Employers) and Miscellaneous Amendment Regs (Northern Ireland) 1987 (SR1987/30)

A small employer is one whose total Class 1 NICs, including primary (employee) and secondary (employer) liability, is at or below a set annual threshold, in the qualifying tax year.

For annual threshold, see SPM21315. 

For qualifying year, see SPM21310.

For this calculation, gross Class 1 NICs exclude:

  • Class 1A,
  • Class 1B, and
  • any NICs rebate

For the appropriate annual threshold for SER see SPM21315.