Can You Claim Back Maternity Pay from HMRC? Yes – Step-by-Step Guide to Reclaiming Your Entitlement

You can claim back most of the Statutory Maternity Pay (SMP) you pay to your employees from HMRC. This means your business can recover up to 92% of the costs, and sometimes more if you qualify for Small Employers’ Relief. Understanding how to make this claim can save your company significant money.

If you employ someone who is on maternity leave, you don’t have to carry the full financial burden. HMRC allows employers to reclaim these payments by following a clear process through your payroll system and submitting the right information. Knowing the details makes the process straightforward and helps you avoid missing out on these refunds.

Understanding Maternity Pay and Leave

You have the right to time off work and financial support when having a baby, but the type and amount of pay depends on certain rules. Knowing how maternity pay works, who can get it, and how it’s different from other benefits helps you plan ahead.

What Is Statutory Maternity Pay?

Statutory Maternity Pay (SMP) is money your employer must, by law, pay you if you qualify and take maternity leave. It lasts for up to 39 weeks.

You get 90% of your average weekly earnings for the first 6 weeks. After that, you receive either £172.48 a week (2024/25 rate) or 90% of your average weekly earnings, whichever is lower, for the next 33 weeks.

Your employer usually pays SMP through your normal payroll and may reclaim most of the cost from HMRC. SMP is a key financial support during your maternity leave.

Eligibility Criteria for Maternity Leave

To qualify for statutory maternity leave, you must be an employee. You don’t need a minimum length of service to take leave, but to get SMP, you must have worked continuously for your employer for at least 26 weeks by the 15th week before your due date.

Your average weekly earnings must meet the Lower Earnings Limit set by the government, which changes each year.

You must inform your employer by the 15th week before your baby is due and provide your due date proof, such as a maternity certificate. This helps your employer plan your leave and pay correctly.

Difference Between Statutory Maternity Pay and Maternity Allowance

If you don’t qualify for SMP, you may be able to claim Maternity Allowance instead. This is paid by the government, not your employer, and usually lasts up to 39 weeks.

Maternity Allowance is available to women who have recently worked but don’t meet the SMP work or earnings rules. The payment is usually a flat rate (£172.48 per week or 90% of your average weekly earnings if less) for up to 39 weeks.

Use SMP if you are employed and meet criteria, otherwise, Maternity Allowance could be your option if you’re self-employed or recently left a job. Both support you financially during maternity leave. For more on reclaiming SMP, visit Get financial help with statutory pay.

When and Why HMRC May Require Repayment

HMRC may ask you to repay statutory maternity pay if errors occur or rules are not followed correctly. Understanding their reasons helps you avoid mistakes and ensures your records stay accurate.

Common Reasons for Overpayment

Repayment requests often arise when you’ve been paid more than you were entitled to. This can happen if:

• Incorrect information was reported through your PAYE or RTI submissions.
• You continued statutory maternity pay after the employee returned to work.
• You claimed for weeks before a qualifying period began.

HMRC regularly checks submitted payroll data and cross-references it with employee status. Overpayments can occur if records are not updated promptly or if entitlement rules change during the pay period.

You should keep clear, accurate payroll records and update HMRC via RTI as soon as you know circumstances have changed. Doing this reduces risks of overpayment and the need to repay.

Compliance and HMRC Regulations

HMRC strictly enforces rules on statutory maternity pay claims to maintain fairness and prevent abuse. If you do not comply with their requirements, repayments are likely.

You must submit accurate reports using the PAYE system and meet eligibility conditions outlined by HMRC. Failing to follow the rules or missing deadlines increases chances of errors in payments.

HMRC also requires that any recoverable statutory payments are claimed correctly within the right timeframes. If you are a small employer, special relief rules may apply, but these too have conditions you must meet.

Non-compliance can lead not only to repayment demands but also to penalties or interest charges on overpaid amounts. It’s essential you keep your payroll compliant and review your claims regularly to avoid issues.

For more details on how to reclaim statutory pay, visit Get financial help with statutory pay.

Claiming Back Maternity Pay: Step-by-Step Guide

You can reclaim most or all of the Statutory Maternity Pay (SMP) you have paid to your employee from HMRC. The process involves confirming eligibility, providing proof of pregnancy, and submitting payment details through the correct payroll channels.

Initiating the Maternity Pay Reclaim Process

Start by checking if your business qualifies for Small Employers’ Relief, which lets you reclaim 103% of SMP paid. You need to be registered as an employer with HMRC and use payroll software that supports Real Time Information (RTI) submissions.

Use HMRC’s Basic PAYE Tools or commercial payroll software to add the SMP reclaim. You enter the amount you paid and record it as a recoverable amount. Be careful to only claim what you have actually paid to employees. This step starts your repayment claim so you must ensure your payroll data is accurate.

Required Documentation and Proof of Pregnancy

You must keep valid proof of pregnancy to support your claim. Ask your employee for an MAT B1 certificate issued by their midwife or doctor. This document confirms the pregnancy and expected birth date.

Store the MAT B1 securely with your payroll records as HMRC may request it during a review. Keeping this proof ready helps avoid delays in repayment. Without it, HMRC can reject your SMP reclaim request, which could cause you to cover the full costs yourself.

Submitting an Employer Payment Summary

Each time you run payroll, submit an Employer Payment Summary (EPS) to HMRC. The EPS details your reclaim for statutory payments like SMP. Make sure to enter the reclaim amount in the section for recoverable amounts.

Without submitting an EPS with the reclaim, HMRC will not process your repayment. Your payroll software will guide you through completing the EPS, or you can use the Basic PAYE Tools software if you do payroll manually.

Remember to submit the EPS even if you have no other payments or deductions that pay period. This keeps your records up to date and ensures your SMP repayment claim progresses smoothly.

Understanding National Insurance Contributions and PAYE Implications

When claiming back maternity pay, you need to understand how Class 1 National Insurance contributions and PAYE processes affect your claim. These affect the amount you can recover and how you report payments to HMRC.

Handling Class 1 National Insurance Contributions

As an employer, you pay Class 1 National Insurance contributions (NICs) on statutory maternity pay (SMP). You might be able to reclaim some or all of these contributions from HMRC, depending on your business size.

You pay NICs on SMP at the usual employer rate. However, if you qualify, HMRC allows you to claim back 103% of SMP paid, including NICs, through your payroll system.

It’s important to keep accurate records of SMP and NICs. HMRC uses your National Insurance payments to calculate how much you can reclaim. If your Class 1 NICs are low or zero, because of your earnings level or business size, you may get a higher repayment.

PAYE Adjustments and Real Time Information (RTI)

You must report SMP payments and National Insurance contributions through the PAYE system in real time, using RTI. This means you notify HMRC each time you pay an employee.

Use your payroll software to include SMP in the employee’s pay submissions. This ensures HMRC calculates your NICs and adjusts your PAYE liabilities correctly.

PAYE adjustments linked to SMP are reflected in your monthly or quarterly payment to HMRC. Keeping RTI submissions accurate and timely helps you avoid delays in claiming back maternity pay.

For detailed guidance on payroll reporting and claims, see the Statutory Maternity Pay and Leave: employer guide.

Employer Responsibilities and Employee Rights

When you manage maternity pay, you must understand how to handle payments and refunds properly. You also need to follow legal rules on notices and risk assessments to protect both your business and your employees. Finally, maternity leave affects related rights like returning to work, parental leave, and sick leave.

Small Employers’ Relief and Enhanced Maternity Pay

If your business qualifies as a small employer, you can claim back most or all of the statutory maternity pay (SMP) from HMRC. This is called the small employers’ relief. To qualify, your total employer National Insurance contributions for the last tax year must be £45,000 or less.

You might also choose to offer enhanced maternity pay beyond the statutory minimum. Even if you do this, you can still claim the SMP portion from HMRC. Make sure you keep accurate records of the maternity payments you make and the claims you submit.

For guidance on calculating what you can reclaim, visit the How employers can claim from HMRC for UK statutory maternity pay.

Notice Periods and Risk Assessment

You must give your employee clear information about maternity leave rights and pay before she starts her leave. The employee should notify you at least 15 weeks before the baby is due, stating the expected week of childbirth and intended start date.

You are also required by law to carry out a risk assessment for pregnant employees. This ensures the workplace is safe during pregnancy. If risks are found, you may need to make adjustments or offer suitable alternative work.

Failing to follow correct notice or risk assessment rules can lead to claims for compensation or legal challenges. This protects both your employee’s health and your business compliance.

Impacts on Return to Work, Parental Leave, and Sick Leave

When your employee returns after maternity leave, she has the right to return to the same job or an equivalent role under the same terms. You must honour her employment contract fully.

Your employee can also take parental leave, shared parental leave, or paternity leave if eligible. These leave types allow caring time after the baby’s birth and have their own notice rules.

If she’s unwell on returning, statutory sick pay and sick leave rights apply as usual. You should treat maternity-related absences fairly in line with your business policies and legal standards. This ensures smooth transition back to work and maintains good employer-employee relationships.

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