Last updated: 16 October 2026
The question
An employee has been on maternity leave for several months. As a small company I have reclaimed the Statutory Maternity Pay (SMP), but HMRC hasn’t repaid the full amount. Why?
How SMP reclaims work
You do not get a separate payment from HMRC for SMP. Instead, you reclaim it through your Employer Payment Summary (EPS), and HMRC offsets it against the PAYE, National Insurance and other deductions you owe for that tax month. If the amount you can reclaim is more than you owe, the excess is carried forward to later months in the same tax year. You only get a cash repayment if you ask for one, or at the end of the tax year.
How much can you reclaim?
| Employer | Reclaim |
| Small employer (Class 1 NIC of £45,000 or less in the previous tax year) | 109% of SMP paid (100% plus 9% compensation) |
| Other employers | 92% of SMP paid |
The same rules apply to Statutory Adoption Pay, Statutory Paternity Pay, Shared Parental Pay and Statutory Parental Bereavement Pay. SMP is £194.32 a week after the first six weeks at 90% of earnings in 2026/27.
Common reasons a reclaim falls short
- The amount on the EPS is lower than the SMP paid, or was entered in the wrong month.
- The EPS was sent after HMRC had already generated a charge, so your account shows a debt.
- You reclaimed 109% but did not qualify as a small employer.
- HMRC offset the reclaim against another debt, such as late payment penalties or an earlier month’s underpayment.
- The reclaim exceeded your liability and was carried forward rather than repaid.
How to check and fix it
- Compare the year-to-date figures on your latest EPS with your payroll records.
2. Check your HMRC business tax account to see how the reclaim was allocated.
3. Send a corrected EPS for the current tax year if figures are wrong. For an earlier year, use the correction process HMRC sets out.
4. If you are owed a repayment, request it through HMRC’s online service or the Employer Helpline.
Advance funding
If you cannot afford to pay SMP while waiting to offset it, you can ask HMRC for advance funding. HMRC can pay the amount before you pay your employee, which helps cash flow for small businesses.
Example
A small company pays £4,500 of SMP in a quarter and reclaims 109%, which is £4,905. Its PAYE liability for the quarter is £3,000. HMRC offsets £3,000 and carries forward £1,905 to the next quarter. If the company wants the £1,905 now, it must ask HMRC for a repayment.
Records to keep
Keep the employee’s MATB1 certificate or other medical evidence, the dates of leave, your SMP calculations and copies of each EPS. HMRC can ask to see these in a compliance check, and you must keep them for at least three years after the end of the tax year.
Frequently asked questions
Can I reclaim employer NIC on SMP?
No. SMP is subject to normal NIC, but the 9% compensation for small employers helps cover it.
What if I pay enhanced maternity pay?
Only the statutory amount can be reclaimed.
How long does a repayment take?
Usually a few weeks after HMRC accepts the request.
Can I reclaim SMP for a previous year?
Yes, within the time limits, using the correction process.
Related: salary rises and SMP, paternity leave help and quarterly PAYE payments.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with statutory pay reclaims through payroll. See our payroll services service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
