Everything You Need To Know About Maternity Leave And Pay

For owner-managers, maternity law and the subsequent payments can feel like a financial burden and particularly complex. This article aims to provide a clear explanation of the rights and responsibilities of employers relating to maternity, paternity and shared parental leave. As an employee, it is equally as important to understand your entitlement and responsibilities in ensuring you receive the correct employee benefits.

Reclaiming SMP from HMRC as an employer

As an employer, you can usually reclaim 92% of employees' Statutory Maternity (SMP), Paternity*, Adoption, Parental Bereavement and Shared Parental Pay.

If your business qualifies for Small Employers' Relief (if you paid £45,000 or less in class 1 national insurance) you can reclaim the full amount plus an extra 3%.