SPM21315 - Statutory Maternity Pay (SMP) - Small Employers' Relief (SER): the annual threshold

The current threshold is £45,000 and details are shown on the HMRC website.

The amount the employer can get back normally depends on the total gross, employer’s plus employee’s, Class 1 NICs in the last complete tax year before the employee’s Qualifying Week (QW). If the annual liability for Class 1 NICs is £45,000 or less the employer is entitled to:

  • 100% of the SMP, and
  • an additional amount as compensation for the NICs they pay on the SMP.

The compensation rate for 2010-11 is 4.5% and the rate for 2011-12 tax year 3%.

All payments of SMP made in the same tax months the employer is entitled to recover should be added together and then they should calculate 100% plus the compensation rate due for the tax year, of that total figure.

The qualifying tax year for SMP purposes is the last complete tax year before the employee’s QW.


The rules for recovering OSPP, ASPP and SAP are the same as for SMP.