SPM30115 - Statutory Adoption Pay (SAP) - Overview

What is SAP

SAP is intended to help employees take time off work to be with their new family by providing a measure of earnings replacement.

It was introduced for qualifying employees who are adopting a child who, on or after 6 April 2003:

• was placed with the adopter under UK law , or
• entered UK from abroad to live with the adopter

A qualifying employee is an employee who, if their earnings are high enough,

• is liable for Class 1 NIC, and
• their employer is the liable secondary contributor.

It should be noted that, unlike SSP and SMP, employees who work in the UK but live in another country, will not be able to satisfy the conditions for SAP if the child is not placed for adoption under UK law or the child does not enter UK to live with the adopter.

If you identify a case where the employee lives in another country, works in the UK and would otherwise satisfy the conditions for SAP please contact PAYE, SA & NIC s Statutory Payments Technical, Newcastle BP4202, Benton Park View.

Employers are responsible for administering the scheme, and paying their employees the SAP to which they are entitled. Legislation sets down when and how SAP should be paid. See SPM30110.

All statutory payments are treated as earnings for income tax and NICs purposes. There are no equivalent state benefits but NI credits may be awarded to maintain an adopter's NIC record.

Employers can recover some or all of the SAP paid to their employees. See SPM21200.

Policy responsibility for the scheme rests with:

• The Department for Business Innovation and Skills (BIS) in Great Britain, and
• The Department for Employment & Learning (DELNI) in Northern Ireland.

HMRC is responsible for ensuring that employers correctly administer the scheme and for providing employers with the funding they are entitled to.