Can my accountant complete an SSP1 form for an employee?

No, your accountant cannot complete an SSP1 form. This form must be completed and issued by the employer to their employee. Your accountant can, however, advise you on the process.

When will Statutory Maternity Pay be received from HMRC?

HMRC does not pay SMP directly to your employee. As the employer, you pay SMP through your payroll, just like regular wages. You then reclaim a percentage of these payments from HMRC by adjusting your monthly PAYE and National Insurance contributions via an Employer Payment Summary (EPS). If you need advance funding because you cannot afford the payments, you can apply to HMRC.

Do I need to pay SSP if an employee is off for only one day?

Yes, from 6 April 2026, Statutory Sick Pay is payable from the first full day of sickness absence, provided the employee meets the other eligibility criteria. There are no longer any 'waiting days'.

What if an employee's sickness started before 6 April 2026 and continues?

For absences that started before 6 April 2026 and continue beyond that date, transitional rules apply. Employees already receiving SSP before 6 April 2026 should be paid the new rate from 6 April 2026. If an employee was not entitled to SSP before 6 April 2026 due to earning below the LEL, they may now be entitled from 6 April 2026 if their absence started on or after 22 September 2025.

Can I offer more than the statutory rates for sick or maternity pay?

Yes, you can choose to offer more than the statutory minimums for both sick pay (often called Occupational Sick Pay) and maternity pay. If you do, these enhanced terms should be clearly outlined in your employee's contract or company policy.

What records do I need to keep for statutory payments?

You must keep detailed records of all statutory payments made, including proof of employee eligibility, payment amounts, calculations, and dates of payments. These records should be kept for at least three years after the end of the tax year they relate to.

Statutory Sick Pay and Maternity Pay: a UK employer's guide

Statutory Sick Pay (SSP): What you need to know

Statutory Sick Pay is the minimum amount you must pay eligible employees who are too unwell to work. Significant changes to SSP came into effect from 6 April 2026, making it more accessible.

Eligibility for SSP

An employee is eligible for SSP if they:

Are classed as an employee for tax purposes (meaning their Income Tax and National Insurance are deducted through Pay As You Earn (PAYE)).
Have done some work under their employment contract.
Have been sick for at least one full working day.
Have told you they are sick within your company's deadline or within 7 days if no deadline is set.

Crucially, from 6 April 2026, the previous requirement for employees to earn at least the Lower Earnings Limit (LEL) and to be off sick for at least 4 consecutive days (known as 'waiting days') has been removed. SSP is now payable from the first day of absence, regardless of earnings.

How much SSP to pay

For the 2026/27 tax year, the weekly rate of Statutory Sick Pay is £123.25. However, for employees whose average weekly earnings are less than £123.25, SSP is paid at 80% of their average weekly earnings, whichever is lower.

You calculate an employee's average weekly earnings over the 8 weeks before their sickness absence began. SSP is paid for up to 28 weeks in any period of sickness. It is treated as normal earnings, so you must deduct Income Tax and National Insurance contributions as usual.

SSP1 form

If an employee is not entitled to SSP, or their SSP is ending, you must provide them with an SSP1 form. This form allows them to apply for benefits like Universal Credit or Employment and Support Allowance (ESA).

You must send the SSP1 form:

Within 7 days of their first day off sick if they do not qualify for SSP.
Within 7 days of their SSP ending if it ends unexpectedly while they are still sick.
On or before the beginning of the 23rd week if their SSP is expected to end before their sickness does.

Your accountant cannot complete an SSP1 form on behalf of an employee; it is an employer's responsibility.

Statutory Maternity Pay (SMP): Your obligations

Statutory Maternity Pay is paid to eligible employees for up to 39 weeks.

Eligibility for SMP

To qualify for SMP, an employee must:

Have at least 26 weeks of continuous employment with you by the "qualifying week" (the 15th week before the week the baby is due).
Earn at least the Lower Earnings Limit (LEL) for National Insurance contributions, which is £129 per week for 2026/27, averaged over the 8 weeks before the qualifying week.
Give you at least 28 days' notice of when they want their SMP to start.
Provide proof of pregnancy, usually a MAT B1 certificate from a doctor or midwife, by the end of the qualifying week or within 3 weeks if the baby is born early.

How much SMP to pay

SMP is paid in two parts:

First 6 weeks: 90% of the employee's average weekly earnings (AWE) before tax.
Remaining 33 weeks: £194.32 per week, or 90% of their AWE, whichever is lower (figures for illustration — check current rates).

SMP is paid through your normal payroll, and you deduct Income Tax and National Insurance as usual.

Reclaiming SMP

Unlike SSP, you can usually reclaim a significant portion of the SMP you pay from HMRC.

The reclaim rates for 2026/27 are:

92% of the SMP paid if your total Class 1 National Insurance (both employee and employer contributions) was above £45,000 in the previous tax year.
109% of the SMP paid if your total Class 1 National Insurance for the previous tax year was £45,000 or lower (this is known as Small Employers' Relief and includes an additional 9% compensation).

You reclaim these payments by including them in an Employer Payment Summary (EPS) to HMRC. If you cannot afford to make the payments, you can apply to HMRC for advance funding.

Common mistakes

Incorrect SSP calculation: Failing to apply the 80% rule for lower earners or using outdated rates.
Missing SSP1 forms: Not issuing an SSP1 form when an employee is not eligible for SSP or their entitlement ends, which can delay their benefit claims.
Incorrect SMP eligibility: Miscalculating the continuous employment or average weekly earnings for SMP, leading to incorrect payments.
Forgetting to reclaim SMP: Not claiming back the eligible percentage of SMP from HMRC, which can impact your business's cash flow.
Lack of clear policies: Not having clear internal policies for reporting sickness or maternity leave, leading to confusion and potential disputes.

Frequently asked questions

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