You can deduct a 92% of the SMP you have paid from the total amount of employees' and employers' NICs due to the HM Revenue and Customs Accounts Office for all your employees.

If SMP was paid in a previous tax year and has not yet been recovered, complete SSP/SMP32 to obtain reimbursement and send it to your nearest HM Revenue and Customs office.

You are entitled to Small Employers' Relief (SER) if you paid, or were liable to pay, gross (total of employees' and employers') Class 1 NICs, of £45,000 or less (remember to deduct your contracted-out rebate from your employers' and employees' NICs when working out if you qualify. Do not include Class 1A NICs on company cars and Benefits in Kind and Class 1 B NICs on PAYE Settlement Agreements.)

The qualifying tax year is the last complete tax year
before each pregnant employee's QW.

If you are entitled to SER, you can

claim back 100% of the SMP you have paid, and

claim a percentage of the total SMP paid, to compensate for the employers' NICs paid on SMP. The rate recoverable for payments of SMP made to an employee is 4.5%.

You can claim both of these amounts from the payments of NICs you make each month to the Inland Revenue.

Once you qualify for SER for a particular employee, you can claim it for the whole period for which her SMP is paid.

You can do this where, for example, you are not liable to pay NICs or PAYE tax each month, or where you have ceased to trade in your business. You cannot reimburse yourself from NICs and PAYE payments, you can ask the HM Revenue and Customs to pay you the amount you are entitled to recover.

You should apply to your Accounts Office in writing at the address printed on the front cover of your payslip booklet, P30(BC)or alternatively on line at hmrc.gov.uk/employers/ststpayments-recovery.htm.

Tell them the amount of SMP that you have paid, or need to pay, and

the amount you are entitled to recover, that is, set out how you have worked out your claim, and

that you need them to pay you this amount because you will not be able to recover it from your payments of NICs and PAYE in the normal way and that you need reimbursement now.

On receipt of your request, your Accounts Office will arrange to send you a payment.