This article explains how to record Statutory Maternity Pay (SMP) funding received from HMRC in BrightPay, including advance funding.

Normally, SMP is:

• Paid to employees by the employer through payroll, and
• Recovered from HMRC by offsetting against PAYE liabilities, or via advance funding if the employer qualifies.

Funding received from HMRC is not entered as a payment to the employee. Instead, it should be recorded against your PAYE liability.

1. Process SMP for the Employee

First, ensure SMP has been correctly set up and processed for the employee:

1. Open the employee’s record and select the Maternity Leave tab.
2. Enter the relevant SMP details and process SMP as normal.
3. Finalise the payroll so that SMP and any recoverable amounts are included in your PAYE figures.

2. Record SMP Funding Received from HMRC

If HMRC has provided advance funding for SMP, this should be entered in the HMRC section so it offsets against your statutory pay reclaim.

A. Enter the Funding in “Received from HMRC to pay statutory pay”

1. Go to the HMRC section in BrightPay.

2. Locate the field Received from HMRC to pay statutory pay.

   

3. For each pay period, enter the amount of SMP funding received from HMRC in this field.
4. The amount entered should match the figure in the SMP Recovered + NIC Compensation box for that period.
5. Continue to enter the amount each month until the total funding received from HMRC has been fully used.

By entering the funding in this way, the SMP recovered and NIC compensation amounts are correctly offset against the HMRC funding, ensuring your PAYE liability and HMRC balances are accurately reflected.

3. Check SMP Recoveries in the EPS

Where SMP is reclaimed from HMRC:

• BrightPay will automatically include SMP, and any applicable NI compensation, in the Employer Payment Summary (EPS) once SMP has been processed via payroll.
• Submit the EPS as normal so that HMRC receives the correct recovery figures.