Financial Help from HMRC
Did you know that you can apply for financial help to fund certain situations where you can’t afford to cover the cost yourself?
Any payments to employees in respect of the following can be claimed back from HMRC through the payroll:-
Statutory Maternity Pay
Statutory Paternity Pay
Statutory Adoption Pay
Shared Parental Pay
You can recover 92% of the amount paid, however, if your business qualifies for Small Employers Relief (ie paid £45000 or less in Class 1 National Insurance the previous tax year) you can claim 103% of the amount paid to your employee.
The recovery is usually reclaimed by offsetting the amount reclaimed from your PAYE deductions for the month.
However, if your company’s monthly PAYE liability is insufficient to offset against the SMP recoverable or if you can’t afford to make the payments, you can apply to HMRC for an advance up to 4 weeks before you need to make the first payment to your employee.
The application needs to be made online:
Employee Tax Refund
You can also obtain financial help to fund a tax refund due to an employee. Ordinarily, tax refunds are funded by offsetting them against your PAYE liability for the month (ie tax, National Insurance, CIS deductions). However, if the amount of the refund due is more than your PAYE liability you can claim the amount from HMRC.
Again, the application needs to be made online, and needs to be made separately if you are applying for more than one employee. Alternatively, if you contact us, we can make the application on your behalf.
Please be aware that if payments are not up to date an application may be refused.
For further information, look on or contact [email protected]