First off, let’s start with the definition of the ‘small employer’ for the purpose of claiming Small Employers Relief (SER): An employer who pays or is liable to pay total gross Class 1 National Insurance contributions (excluding Class 1A and Class 1B) of £45,000 or less in the qualifying year.
If you qualify, you can reclaim any statutory maternity, paternity, adoption or shared parental pay you’ve paid to your employees. Small employers can claim 100% of the statutory payments made and an additional 3% relief. If you’re not a small employer, you’ll still be able to reclaim the usual 92%. Please note that the statutory sick pay cannot be reclaimed through SER.
In order to reclaim the payments, you need to let your software calculate how much you can get back, include the figures in your Employer Payment Summary (EPS) sent to HMRC.