Statutory Paternity Pay (SPP)
Statutory Paternity Pay (SPP) is a benefit designed to support working fathers or partners of pregnant women, providing them with financial assistance during their time off following the birth or adoption of a child. This guide will explain what SPP is, how it works, who can claim it, and more.
What is Statutory Paternity Pay?
Statutory Paternity Pay is a government-mandated benefit that allows eligible employees to receive pay while taking time off work to care for their new child or support the mother. It ensures that fathers and partners can afford to take leave without a significant financial burden.
How Does Statutory Paternity Pay Work?
SPP works by providing eligible employees with up to two weeks of paid leave. This leave can be taken as either one continuous week or two consecutive weeks, but not as separate days or weeks. The leave must be taken within 56 days of the child's birth or adoption placement.
Who Can Claim Statutory Paternity Pay?
To qualify for SPP, you must:
Be the biological father, the mother's partner, or the adopter's partner.
Have been continuously employed by your employer for at least 26 weeks by the end of the 15th week before the baby is due or by the week you are notified of being matched with your child for adoption.
Provide the correct notice to your employer.
Earn at least £123 per week (before tax).
How Much is Statutory Paternity Pay?
The amount of SPP is either £172.48 per week or 90% of your average weekly earnings, whichever is lower. This is paid for a maximum of two weeks.
Who Pays Statutory Paternity Pay?
Your employer is responsible for paying SPP. They will pay it in the same way as your wages, usually on your normal payday. It will be subject to tax and National Insurance deductions.
Do You Pay Tax on Statutory Paternity Pay?
SPP is treated as income and is subject to Income Tax and National Insurance contributions. It will be deducted by your employer in the same manner as your regular salary.
How Long Do You Get Statutory Paternity Pay For?
You can receive SPP for up to two weeks. This leave must be taken in either one full week or two consecutive weeks within 56 days of the child's birth or adoption placement.
How Do I Apply for Statutory Paternity Pay?
To apply for SPP, you need to:
Inform your employer in writing at least 15 weeks before the baby is due or within seven days of being matched for adoption.
Provide your employer with the MATB1 certificate (if the mother is giving birth) or the matching certificate (for adoption).
Complete a form SC3 (becoming a birth parent) or form SC4 (adopting a child), which can be obtained from the HMRC website.
Can Employers Claim Back Statutory Paternity Pay?
Employers can usually reclaim 92% of the SPP they pay from HM Revenue and Customs (HMRC). If they qualify for Small Employers' Relief, they can reclaim 103% of the SPP. Employers must use their Employer Payment Summary (EPS) to claim back SPP.
Can You Get Statutory Paternity Pay if Self-Employed?
Self-employed individuals are not eligible for SPP. However, they can take advantage of other forms of support, such as Maternity Allowance for partners who are pregnant. The government does not provide a direct equivalent of SPP for self-employed fathers or partners.
Conclusion
Statutory Paternity Pay provides essential financial support to fathers and partners, ensuring they can take time off to care for their new child or support the mother. Understanding how SPP works, who is eligible, and the application process is crucial for expecting or adopting parents. For more detailed information, it is always advisable to consult with your employer or visit the official UK government website.
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