PAYE21225 - Employer records: maintain employer record: SAP / SPP / OSPP / ASPP / ShPP / SNCP
Source: gov.uk (2025-04-07)


This subject is presented as follows

Background (#IDAUQ2ND)Funding (#IDAZ12ND)Employer responsibilities (#IDAL22ND)Employee responsibilities (#IDAT52ND)Time limits for notice (#IDAID3ND)End of year employer action (#IDAAF3ND)Payment (#IDATF3ND)

Background

In April 2003 a number of changes were introduced that affected working parents. Two new statutory payments became available
- Statutory Adoption Pay (SAP)And
- Statutory Paternity Pay (SPP)
From 3 April 2011, further changes affecting working parents came into force
- SPP changed to Ordinary Statutory Paternity Pay (OSPP)And
- Additional Statutory Paternity Pay (ASPP) was introduced
From 5 April 2015, more changes affecting working parents were introduced
- Shared Parental Pay and Leave (ShPP) was introducedAnd
- Ordinary Statutory Paternity Pay (OSPP) was rebadged as Statutory Paternity Pay (SPP)
From 6 April 2025, a further change affecting working parents was introduced
- Statutory Neonatal Care Pay (SNCP)
For those parents satisfying certain qualifying conditions, these Statutory Payments are made via their salary
- Conditions for SAP (Word 26KB) (http://www.hmrc.gov.uk/gds/paye/attachments/conditions_for_sap.doc)
- Conditions for OSPP / SPP (Word 31KB) (http://www.hmrc.gov.uk/gds/paye/attachments/conditions_for_ospp_spp.doc)
- Conditions for ASPP (Word 31KB) (http://www.hmrc.gov.uk/gds/paye/attachments/conditions_for_aspp.doc)
- Conditions for ShPP (Word 33KB) (http://www.hmrc.gov.uk/gds/paye/attachments/conditions_for_shpp.doc)
- Conditions for SNCP (https://www.gov.uk/employers-neonatal-care-pay-leave/eligibility)
The employer can then claim back either
- 92% of any payment madeOr
- 100% (plus compensation) if they qualify for Small Employers Relief. From April 2025, the small employers who qualify for SER are allowed to recover 100% of the Statutory Maternity PAY (SMP) / SAP / ShPP / Statutory Parental Bereavement Pay (SPBP) / Statutory Neonatal Care Pay (SNCP) paid to their employees, plus 8.5% compensation. For more information and for earlier tax years see Small Employers Relief (SER) (Word 31KB) (http://www.hmrc.gov.uk/gds/paye/attachments/small_emps_relief_v0.doc)
For 2010 to 2011
- The compensation rate for SAP / OSPP / ASPP payments made was 4.5%And
- The SER threshold was £45,000
For 2011 to 2012 to 2024 to 2025
- The compensation rate for SAP / OSPP / ASPP / SPP / ShPP was 3%And
- The SER threshold was £45,000
For 2025 to 2026 onwards
- The compensation rate for SMP / SPP / SAP / ShPP / SPBP / SNCP is 8.5%And
- The SER threshold remains unchanged at £45,000
For 2010 to 2011, the weekly rate of SAP / OSPP is the lesser of
- The standard rate of £124.88Or
- The earning-related rate (90% of the employee's average weekly earnings)
For 2011 to 2012, the weekly rate of SAP / OSPP / ASPP is the lesser of
- The standard rate of £128.73Or
- The earning-related rate (90% of the employee’s average weekly earnings)
For 2012 to 2013, the weekly rate of SAP / OSPP / ASPP is the lesser of
- The standard rate of £135.45Or
- The earning-related rate (90% of the employee’s average weekly earnings)
For 2013 to 2014, the weekly rate of SAP / OSPP / ASPP is the lesser of
- The standard rate of £136.78Or
- The earning-related rate (90% of the employee’s average weekly earnings)
For 2014 to 2015, the weekly rate of SAP / OSPP / ASPP is the lesser of
- The standard rate of £138.18Or
- The earning-related rate (90% of the employee’s average weekly earnings)
For 2015 to 2016, the weekly rate of SAP / OSPP / ASPP / SPP / ShPP is the lesser of
- The standard rate of £139.58Or
- The earning-related rate (90% of the employee’s average weekly earnings)
- In addition, for 2015 to 2016 onwards, SAP is paid at the rate of 90% of the employee’s AWE for the first 6 weeks, followed by the lower of the standard rate or 90% of the AWE for the remainder of the SAP period. This is to bring it in line with SMP.
These payments are liable to deductions of
- Income Tax
- National Insurance ContributionsAnd
- Deductions that would be taken from the employee's normal wages, such as trade union subscriptions
SAP / OSPP / ASPP / SPP / ShPP / SNCP are not liable to deductions for
- Attachment of earnings orders (arrestment of earnings orders in Scotland)Or
- Child Support Agency deductions from earnings orders
Entitlement to SAP / OSPP / ASPP / SPP / ShPP / SNCP does not affect the employee's entitlement to contractual paternity pay or other remuneration. An employer may offset liabilities of SAP / OSPP / ASPP / SPP / ShPP / SNCP and other earnings.

HMRC is responsible for ensuring that employers correctly administer the scheme and for providing employers with the correct amount of funding.

Funding

Employers are expected to use the PAYE tax, NICs, Student and/or Postgraduate Loan deductions and Construction Industry Scheme deductions to make the payments. If they do not have enough they will also be able to apply for funding to make these payments retrospectively or in advance. To make a claim the employer must contact their relevant HMRC Accounts office.

If the employer needs help they can call the Employer Helpline
- Tel xx-xxxx-xxxx
Employer responsibilities

The employer is responsible for
- Administering the scheme and keeping records of
- The evidence of entitlement to SAP / OSPP / ASPP / SPP / ShPP / SNCP
- The weeks when SAP / OSPP / ASPP / SPP / ShPP / SNCP was paid
- The amounts paid
- The date the Adoption Pay Period (APP) / Ordinary Paternity Pay Period (OPPP) / Additional Paternity Pay Period (APPP) / Paternity Pay Period (PPP) / Shared Parental Pay Period (ShPPP) began
- Any weeks in the APP / OPPP / APP / PPP / ShPPP where SAP / OSPP / ASPP / SPP / ShPP / SNCP was not paid, with the reason(s)
- Paying their employees what they are entitled to
- There are penalties for failing to pay SAP / OSPP / ASPP / SPP / ShPP /SNCP
- If the employer is insolvent or refuses to pay the SAP / OSPP / ASPP / SPP / ShPP / SNCP the liability to pay will transfer to HMRC
- Paying SAP / OSPP / ASPP / SPP / ShPP / SNCP to a former employee except in weeks where employed by a new employer
An employer must not
- Make any agreement to exclude or limit or change the employee's statutory entitlement
- Require an employee or former employee to
- Repay the SAP / OSPP / ASPP / SPP / ShPP / SNCP
- Contribute to the costs of administering the scheme
The employer will record the amount of SAP / OSPP / ASPP / SPP / ShPP / SNCP paid on the form P11 or equivalent.

Forms SAP2 / OSPP2 / ASPP2 / SPP2 / NEO2 record sheets are also available to employers to record payments of SAP / OSPP / ASPP / SPP / SNCP if required.

To assist employers with SAP / OSPP / ASPP / SPP / ShPP / SNCP, all guidance is now available online from Gov.uk

Employee responsibilities

The employee must tell their employer the date from which they wish to be paid, and provide

For SAP
- Evidence for SAP (Word 24KB) (http://www.hmrc.gov.uk/gds/paye/attachments/evidence_for_sap.doc) from the adoption agency including the date on which the child is expected to be placed with them, which will be a matching certificate or form SC6 (adoption from abroad)
For OSPP up to April 2015
- The expected date of childbirth
- Whether they intend to take 1 or 2 weeks off work
- Evidence for OSPP (Word 29KB) (http://www.hmrc.gov.uk/gds/paye/attachments/evidence_for_ospp.doc) which may (not necessarily) be on SC3 or SC5
For ASPP
- Evidence for ASPP (Word 33KB) (http://www.hmrc.gov.uk/gds/paye/attachments/evidence_for_aspp.doc) including a declaration for SC7, SC8 or SC9 signed by their spouse, partner or civil partner that they have returned to work and stopped receiving Statutory Maternity Pay (SMP), Maternity Allowance (MA) or SAP
- Details of how many weeks they wish to take off work
For SPP from April 2015
- As for OSPP, the expected date of childbirth
- As for OSPP, whether they intend to take 1 or 2 weeks off work
- As for Evidence for OSPP (Word 29KB) (http://www.hmrc.gov.uk/gds/paye/attachments/evidence_for_ospp.doc) which may (not necessarily) be on SC3, SC4 or SC5
For ShPP
- Evidence for ShPP (Word 31KB) (http://www.hmrc.gov.uk/gds/paye/attachments/evidence_for_shpp.doc)
For SNCP

Evidence for SNCP must be provided on the NEO3 declaration form including
- The relationship to the child
- Child's date of birth
- Date of when the child entered neonatal care
- Confirmation that the child has been in neonatal care for 7 continuous days or more
For all
- They must inform a former employer who is still paying SAP / OSPP / ASPP to them any dates on which they work for a new employer
Time limits for notice

For SAP and OSPP
- The employee must give notice at least 28 days before they expect their entitlement to SAP / OSPP to begin, or, if this is not reasonably practicable, as soon as possible
- If the employee is late in giving notice, the employer must decide if the delay is reasonable based on the employee's circumstances
- If they think the delay was unreasonable, the employer can refuse to pay SAP / OSPP at all but must tell the employee their reason(s) and may be required to provide a written statement on request. The employee may then request HMRC to make a decision on their entitlement
For ASPP
- The employee must apply for ASPP in writing at least 8 weeks before they wish to start their ASPP. The employer can delay the start of ASPP until they have received acceptable notice
For ShPP
- The notice must be given at least 8 weeks before the start date of the first period of ShPP to be taken by the mother or adopter and must be accompanied by 2 written declarations
End of year employer action

The employer will at the tax year end
- Add up the amounts of SAP / OSPP / ASPP / SPP / ShPP / SNCP paid shown on form P11 and record these on the Full Payment Submission
- Calculate the total SAP / OSPP / ASPP / SPP / ShPP / SNCP recovery and NI compensation and record these on the Employer Payment Summary
Payment

SAP / OSPP / ASPP / SPP and adoption / paternity leave must
- Be taken in a single period
- Not be split
- Not be taken as odd days
The maximum amount of time SAP can be paid for is 39 weeks (any period of 7 days).

OSPP can be paid for one or two consecutive weeks.

ASPP is paid for the remaining of the SMP, MA or SAP pay period following the mother or adopter’s return to work. ASPP can not start until the child is 20 weeks old or has been placed for 20 weeks or entered the UK for 20 weeks.

SAP / OSPP / ASPP SPP / ShPP is not payable by the employer for any week
- In which the employee works (other than agreed KIT days)
- In which the employee receives Statutory Sick Pay
- After the week that the employee dies
- After the employee is taken into custody
ShPPShPP can be paid for a maximum of 39 weeks shared between the mother and father of the child or the mother and her spouse or partner. In adoption cases it can be shared between the adopter and their spouse or partner. The number of weeks available to share are reduced by the amount of SMP, MA or SAP taken by the mother or adopter.

SNCP

Parents of babies in neonatal care are entitled to an additional 12 weeks of leave and pay if eligible, on top of parental leave, including maternity and paternity leave. Employees must take Neonatal Care Leave after any Statutory Maternity or Adoption Leave. If the baby is in neonatal care, or in the first week after, Neonatal Care Leave can be interrupted by other types of pre-booked parental leave (such as Paternity or Shared Parental Leave). The remaining period of Neonatal Care Leave can be tagged immediately onto the end of the other parental leave.

If leave is being taken later than the first week after the baby leaves neonatal care, it can only be taken in a single block, before or after any other existing parental leave entitlement.