SPM70205 - Payments - Making a payment

HMRC responsibility to pay Statutory Payments (SP)

HMRC will only become liable to pay SPs if:

• following a formal decision, or appeal, an employer defaults on paying a SP to their employee within legal time limits, or
• a company becomes insolvent and any employees have a continuing entitlement to SPs beyond the insolvency date.

When HMRC take over paying a SP take the following action.

Establish how many weeks have already been paid by the employer and how many weeks are outstanding and pay the balance of the remaining weeks. Regardless of the weekly amount paid by the employer it is HMRC’s responsibility to pay the remaining weeks at the current weekly rate.

However if there is clearly an underpayment or overpayment for the weeks already paid then HMRC should make the necessary adjustment.

Example when the employer hasn’t paid enough

10 weeks paid at £57.18 per week but £117.18 per week due HMRC should make the necessary adjustment, pay the difference and continue with the weekly payments.

Example when the employer has paid too much

10 weeks paid at £200 per week but £117.18 per week due HMRC should offset the extra paid against the remainder of any SMP due, ensuring it’s not earnings or an occupational maternity payment or the like, so as not to deprive the employee in anyway, make the necessary adjustment and continue with the weekly payments.

Details on issuing a SP payment, see SPD17000