Small Employers Relief (SER)
Date Published: September 10th, 2019

Employer’s Eligibility for Small Employers Relief (SER) 

An employer qualifies for Small Employers Relief (SER) in case he/she paid class 1 national insurance contributions to HMRC (Account office) of a fixed amount (or less) in the qualifying tax year. Total of employer & employee liability for national insurance contribution should be £45000 or less in the last complete tax year before employee’s qualifying week (Matching week – in case of adoption) in order to become eligible for small employer’s relief (SER).

  • In case your baby is due between 22nd July 2018 – 20th July 2019, kindly check the liability for 2017-18
  • In case your baby is due from 21st July 2019 – Kindly check the liability for 2018-19

In case you didn’t remain as employer for some tenure or all for the tax year prior to the qualifying week, you need to confirm your small employer’s relief status with HMRC. 

How to Reclaim Small Employers Relief? 

In case you are paying statutory maternity pay (SMP), statutory paternity pay (SP), shared parental pay, statutory adoption pay to your employees (any type of pay), you are eligible to reclaim part or whole of it.

In order to become eligible for reclaim, you need to be classed as small employer. As a small employer, you can reclaim 100% of the payment plus an additional relief of 3% as compensation whereas if you are not classed as small employer and come under medium or large companies, you are eligible to reclaim only 92% of the statutory payments. Medium or large companies don’t have the right to claim anything as compensation.

Reporting to HMRC to Reclaim Small Employers Relief

Any amount of recovery or compensation will be reported to HMRC via EPS submission. You need to record your P32 payment to HMRC in order to reclaim the relief. You also need to submit your employer payment summary (EPS) on monthly or quarterly basis depending upon your frequency of reporting to HMRC.

How Nomisma Payroll Software help in Small Employers Relief? 

Nomisma Payroll Software is one of the best accounting software’s for SMEs, Accountants, Sole Traders, Contractors, Agents, self-Employed & Freelancers. It not only provides you data privacy and security but also gives you the clear picture of the current financial situation of your company. This payroll software provides you access to everything in a much easier way in comparison to other software’s. Nomisma cloud accounting software helps employers in calculating not only the reclaim amount of small employers relief but also report it to HMRC on time. You will find everything online along with automatic updates and data backup. With the help of Nomisma cloud accounting software, you can run your business from any part of the world.

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