SPM70305 - Payments - Insolvent employer: Introduction

HMRC are liable to pay any unpaid:

• SSP from the date of insolvency
• SMP, SAP, OSPP and ASPP from the pay week in which the liable employer becomes insolvent.

HMRC liability runs from the day or week in which insolvency occurs until entitlement ends. Remember that entitlement to SSP ends when the contract comes to an end, (which may have been ended at the insolvency date) or when incapacity ceases.

Payments due for periods before the day or week of insolvency remain the employer's responsibility unless the employer defaults. If this happens, normal action should be taken to issue a decision, await a response or appeal and pay as appropriate, see SPM70315 andSPD17010.

If after reviewing the case it is established that the employee does have an entitlement to a statutory payment but the employer is insolvent it must be established if the period of entitlement relates to a:

• post insolvency period, see SPM70310 
• pre insolvency period, see SPM70315 
• pre and post insolvency period, see SPM70320