Q&A: Why hasn’t HMRC repaid the full amount of statutory maternity pay?

Posted on Jun 28 2023

Q. An employee has been on maternity leave for several months and as a small company I have reclaimed the statutory maternity pay (SMP), but HMRC hasn‘t repaid this amount in full. Why could this be?

A: The PAYE system is set up to collect tax and other payroll deductions. When an employer is due a refund that sum is first off set against the PAYE due to be paid over every month or quarter. Rather than pay back the balance of the refund to the employer, HMRC hold on to it to set it against future tax/NIC liabilities.

If you look in your business tax account under the PAYE section and click on ‘payments made’, it should show an unallocated credit, which will be the balance of the SMP owing. You can make a request that HMRC pay that sum to you, by phoning the employer helpline.

The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.

About the Author

Martin Johnson

Partner

With expertise in advising family-owned companies on a range of tax, accountancy and business issues, Martin also has an in-depth knowledge of the automotive and property sectors. In addition, he provides advice on inheritance tax planning and financial management to owner-managed businesses. Martin leads the firm in developing its expertise in the buy-to-let sector, advising both residential and commercial property owners on relevant tax and legislation issues. A further element to Martin’s role is to build Torgersens’ relationships with banks, financial advisors and specialists in commercial and employment law to ensure that the firm’s clients have access to market-leading guidance.

To get in touch please e-mail martin.johnson@torgersens.com.