SPM70120 - Payments - Payments to the employer: How does an employer apply for advance funding

Employers are expected to use the PAYE tax, NICs, Student Loan deductions and Construction Industry Scheme deductions to fund SMP, OSPP, ASPP and SAP. However they may not have enough money from the deductions to pay out all the statutory payments that they are liable to pay. They can apply to their HMRC Accounts Office for the balance. The way that they apply depends whether the statutory payment is relevant to the current tax year or a previous tax year.

Statutory payment relevant to the current tax year

Employers can apply online at www.hmrc.gov.uk/paye/employees/statutory-pay/funding.htm

Statutory payment relevant to a previous tax year but has not yet been paid

Employers cannot apply online if the statutory payment is relevant to a previous tax year and they have not yet made the statutory payment.

All applications for advance funding in these circumstances must be made in writing, setting out the calculation, to the relevant HMRC Accounts Office.

There is no special form for this but employers have been provided with a quick check sheet in the E15, E16 and from April 2009 the E19 Employer Helpbooks which they can use to set out their calculations.

Statutory payment relevant to a previous tax year and the statutory payment has been paid

If the SSP, SMP, OSPP, ASPP and SAP is relevant to a previous tax year and has already been made the employer should complete form SP32 to apply for a refund see SPM70135