HM Revenue and Customs’ (HMRC’s) Software Developer Support Team (SDST), has announced that the Small Employers Relief rate of compensation is to be increased to 8.5% in 2025-26.
This means that employers who paid less than £45,000 in Class 1 National Insurance (ignoring reductions such as the Employment Allowance) in the last full tax year qualify to claim 100% of the below statutory payments, plus an additional 8.5% compensation.
This applies to:
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Shared Parental Pay
- Statutory Parental Bereavement Pay
- Statutory Neonatal Care Pay
It is confirmed that the £45,000 threshold will remain the same. GOV.UK guidance will be updated soon.
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