Glossary · UK
What is SMP Reclaim Rate?
The percentage of Statutory Maternity Pay an employer can reclaim back from HMRC.
Full Definition
The SMP reclaim rate is the proportion of Statutory Maternity Pay (and other statutory family-related pay) that an employer can recover from HMRC, usually by offsetting it against PAYE and National Insurance due. Most employers can reclaim the majority of what they pay out, while small employers whose total Class 1 National Insurance liability falls below a set threshold in the qualifying tax year can reclaim a higher percentage plus a small additional compensation amount, under the Small Employers' Relief provisions.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.