Skip to main content

A Guide to Small Employer Relief for 2025/26

A Guide to Small Employer Relief for 2025/26

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.

Comments