Claiming Small Employer Relief

Small Employer Relief is aimed at helping employers who pay statutory absences such as Statutory Maternity (SMP), Paternity (SPP), Adoption SAP and Shared Parental Pay (ShPP). Depending on your circumstances you can claim some or all of it back from HMRC. PayRun.io will automatically calculate the correct amount of compensation due on the P32 report.

The exact amount you can reclaim depends on whether you're classed as a small employer or not. Employers normally qualify for small employer relief if their Class 1 National Insurance are less than £45,000 in the previous complete tax year (ignoring any reductions like Employment Allowance).

As a small employer you can reclaim 103%, even if you are not a small employer you can still reclaim 92%.

For further up to date information from HMRC please visit https://www.gov.uk/recover-statutory-payments/reclaiming

How to enable Small Employer Relief?

If you are unsure whether you qualify for small employer’s relief, you should check with HMRC first.

To enable automatic calculation of the small employer relief on the P32 you must set the ClaimSmallEmployerRelief property on the Employer to true.

A PATCH request can be issued to update an existing employer.

curl -X PATCH
   https://api.test.payrun.io/Employer/ER001
   -H 'Content-type: application/xml'
   -H 'Accept: application/xml'
   -H 'Api-Version: default'
   -H 'Authorization: {OAuthHeader}'
   -H 'Cache-Control: no-cache'
-d '<?xml version="1.0"?>
<Employer>
 <EffectiveDate>2017-04-06</EffectiveDate>
 <ClaimSmallEmployerRelief>true</ClaimSmallEmployerRelief>
</Employer>'
curl -X PATCH
   https://api.test.payrun.io/Employer/ER001
   -H 'Content-type: application/json'
   -H 'Accept: application/json'
   -H 'Api-Version: default'
   -H 'Authorization: {OAuthHeader}'
   -H 'Cache-Control: no-cache'
-d '{
  "Employer": {
    "EffectiveDate": "2017-04-06",
    "ClaimSmallEmployerRelief": true
  }
}'