Statutory maternity pay: the employer's admin checklist


When an employee tells you she is pregnant, the congratulations are the easy part. The admin that follows catches many small employers out: notice rules, evidence requirements, pay calculations, and HMRC recovery all have to be handled correctly and on time. Here is the employer's checklist for statutory maternity pay (SMP), in the order things happen.

When she notifies you

Your employee must tell you she is pregnant by the end of the 15th week before the expected week of childbirth, and give you her MAT B1 certificate (from her midwife or GP) as evidence. She must also give at least 28 days' notice of when she wants her SMP to start. Log all three: the notification date, the MAT B1, and the intended start date. If any notice is late, you can still pay SMP, but you need the evidence trail.

Check she qualifies

To qualify for SMP, the employee must have:

  • At least 26 weeks of continuous employment with you by the end of the 15th week before the expected week of childbirth.
  • Average weekly earnings at or above the lower earnings limit in the 8 weeks ending with that 15th week.

If she does not qualify, you must give her form SMP1 within 7 days of your decision, explaining why, so she can claim Maternity Allowance instead. Missing the SMP1 deadline is one of the most common employer errors.

Calculate the pay correctly

SMP runs for up to 39 weeks:

  • Weeks 1 to 6: 90% of average weekly earnings, with no cap.
  • Weeks 7 to 39: the lower of the statutory flat rate and 90% of average weekly earnings.

Average weekly earnings are calculated over the 8-week relevant period, including overtime, bonuses, and commission. Get this calculation wrong and you either underpay (a grievance waiting to happen) or overpay (money you cannot fully recover). Payroll providers and outsourced payroll specialists run this calculation routinely, which is why many small employers hand the whole process over.

Recover it from HMRC

You can recover 92% of the SMP you pay through your payroll, offset against your PAYE bill. If your total Class 1 National Insurance bill for the previous tax year was £45,000 or less, you qualify for Small Employers' Relief and can recover 103%, the extra 3% compensating for the employer's NICs on the SMP. Claim the recovery through your payroll software's Employer Payment Summary (EPS). Many employers forget the EPS step and leave money unclaimed for months.

Handle the return properly

The employee has the right to return to the same job if she comes back within 26 weeks. Keep in touch reasonably during leave, invite her to training or team events if she wants, and plan the handover back. You must also keep her pension contributions and other contractual benefits (apart from pay) running during paid maternity leave, a duty employers overlook surprisingly often.

Keep records for 3 years

HMRC can ask to see your SMP records, including the MAT B1, calculations, and payment dates, for at least 3 years after the tax year they relate to. Store them with your other payroll compliance records and make sure whoever runs your payroll knows where they are.

SMP admin is fiddly but entirely manageable with a checklist. The employers who get into trouble are the ones who wing it.

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